Dubai’s Real Estate Market Accelerates in H1 2025, Led by Premium Master-Planned Communities

Dubai’s residential real estate market continued its upward trajectory in the first half of 2025, driven strongly by high-quality master-planned communities. Developments such as Dubai Hills Estate and Emirates Living, both delivered by Emaar, have emerged as critical engines of capital appreciation, investor confidence, and long-term market stability. These communities combine lifestyle appeal with strategic investment value, positioning them as both iconic residential destinations and economic anchors within the city.

Dubai Hills Estate: The Benchmark for Modern Luxury Living

Strategically located between Downtown Dubai and Dubai Marina, Dubai Hills Estate has evolved into one of the city’s most dynamic residential submarkets. With seamless connectivity via Umm Suqeim Street and Al Khail Road, the community offers residents direct access to major business districts while maintaining a tranquil, green environment.

Dubai Hills Estate is home to landmark amenities such as Dubai Hills Mall, King’s College Hospital, an 18-hole championship golf course, and leading schools including GEMS Wellington Academy, reinforcing its appeal to both families and professionals.

As noted by Abdullah Alajaji, CEO of Driven Properties | Forbes, Dubai Hills Estate stands out as a thoughtfully designed “city within a city,” successfully integrating expansive open spaces with world-class lifestyle infrastructure.

Market performance reflects this appeal. While ready-property transactions have remained stable at approximately 1,400 annually, off-plan sales surged sharply, rising from 1,149 transactions in 2021 to 5,693 in 2024. This trend highlights strong end-user retention, limited speculative resale activity, and growing confidence in the long-term value of future-ready developments.

Pricing momentum has also remained steady. By H1 2025, off-plan properties averaged Dh2,479 per square foot, while ready units reached Dh2,363 per square foot, narrowing the traditional gap between the two segments. Premium offerings command even higher values, with Emerald Hills plots averaging Dh4,248 per square foot, and branded residences such as Address Hillcrest achieving premiums of Dh5,148 per square foot.

The rental market mirrors this growth. Studio rents climbed from Dh85,500 to Dh134,900, while one-bedroom apartments nearly doubled to Dh138,300 by H1 2025. Rental contracts increased from 3,686 in 2021 to 6,057 in 2024, supported by high renewal rates that signal tenant satisfaction and long-term occupancy.

Occupancy peaked at 88.8% in 2022 and stabilized at 86.5% in H1 2025, reflecting a well-balanced supply pipeline. With 54% of inventory still under development, Dubai Hills Estate continues to demonstrate controlled growth and sustained demand.

Emirates Living: Enduring Prestige and Family-Focused Stability

While Dubai Hills Estate represents contemporary luxury and forward momentum, Emirates Living exemplifies long-term value, prestige, and family-oriented living. Spanning over 52 million square feet, the community includes Emirates Hills, The Meadows, The Springs, and The Lakes, each catering to different lifestyle segments while sharing mature infrastructure and abundant greenery.

According to Alajaji, Emirates Living remains one of Dubai’s most distinguished villa communities, defined by its established environment, landscaped open spaces, and strong appeal to families.

Transaction activity across Emirates Living has remained resilient, averaging 760 to 800 sales annually over the past four years. In H1 2025 alone, 371 transactions were recorded, underscoring consistent demand despite rising prices. Average prices per square foot have more than doubled since 2021, reaching Dh2,455 by mid-2025.

Among the sub-communities:

Emirates Hills commands the highest values, averaging Dh4,929 per square foot, with five-bedroom villas reaching Dh5,669 per square foot. Limited supply and long-term ownership patterns restrict liquidity, reinforcing its status as a trophy asset market.

The Lakes offers a balanced investment profile, with five-bedroom villas averaging Dh4,831 per square foot and strong demand for three-bedroom homes, supported by stable transaction volumes.

The Meadows has seen villa values for three- and four-bedroom units more than double since 2021, attracting families seeking spacious homes with long-term appreciation potential.

The Springs, accounting for 55% of Emirates Living’s total supply, remains the most liquid segment. Prices nearly doubled from Dh1,012 per square foot in 2021 to Dh2,044 per square foot in H1 2025, making it particularly attractive to first-time buyers and mid-market investors.

Rental trends further reinforce these dynamics. The Springs recorded over 1,700 rental contracts in 2024, the highest across the community, while Emirates Hills continues to exhibit low rental turnover due to its ownership-driven nature. Rental values across all submarkets have risen steadily, with Emirates Hills leading in price per square foot.

Market Outlook

Together, Dubai Hills Estate and Emirates Living represent two complementary pillars of Dubai’s real estate landscape. Dubai Hills drives momentum through modern design, off-plan innovation, and branded luxury, while Emirates Living delivers stability, scarcity-driven value, and enduring family appeal.

As Alajaji summarised, with strong connectivity, world-class amenities, and sustained demand, these communities continue to rank among Dubai’s most desirable destinations for family living, rental performance, and long-term capital appreciation.