Dubai: Commenting on the trend, Badar Rashid AlBlooshi, Chairman of Arabian Gulf Properties, said the robust price growth recorded in 2025 reflects Dubai’s transition into a balanced, demand-driven real estate market. He noted that growth is being supported by genuine end-user and investor demand across all major property segments.

According to data from ValuStrat, annual capital values for villas increased by 25.5 per cent, making 2025 the strongest year on record for Dubai’s property market. AlBlooshi said the sharp rise in villa prices signals a structural shift in buyer preferences, with investors increasingly prioritising quality developments, prime locations and long-term value.

The report identified top-performing villa communities including Jumeirah Islands, Palm Jumeirah, Green Community West, The Meadows, Victory Heights and Mudon, citing their strong infrastructure, integrated planning and limited supply.

Apartment prices also recorded a major milestone. AlBlooshi said areas such as Remraam, Dubai Silicon Oasis, The Greens and Dubai Land Residence Complex saw the highest annual gains, driven by sustained demand for mid-market housing and steady population growth. For the first time, apartment prices have also surpassed the 2014 peak, which AlBlooshi described as a healthy sign of market balance.

Demand in the luxury segment remained strong, particularly in Palm Jumeirah, Dubai Hills Estate, Al Barari, Downtown Dubai and Business Bay, reflecting continued appetite for high-end waterfront and lifestyle-oriented developments.

AlBlooshi concluded that Dubai’s strong regulatory framework and clear long-term economic vision continue to underpin investor confidence, reinforcing the emirate’s position as a resilient and globally attractive real estate market.