Dubai’s real estate market is experiencing a significant shift in demand, with apartments now outpacing villas. In April, nearly 58% of property buyers were actively seeking apartments, while 42% were interested in villas or townhouses. Let’s explore the reasons behind this trend.
The Rise of Apartments
Professional Migration
Dubai continues to be a magnet for professionals in 2025, attracting skilled workers, entrepreneurs, and digital nomads seeking better opportunities and a tax-friendly lifestyle.
With ongoing visa reforms, such as the 10-year Golden Visa and remote work permits, the city is seeing a steady influx of qualified expats
According to Dubai Statistics Centre, the emirate’s population surpassed 3.7 million in early 2025, growing by over 100,000 residents in a single year.
These professionals are driving sustained demand for apartments, particularly in business hubs like Business Bay, Downtown, and Dubai Marina, where convenience, amenities, and proximity to workplaces are key priorities.
Post-Pandemic Shift
While the pandemic years (2020–2022) sparked a villa boom as families sought larger, secluded homes, the post-pandemic market in 2024–2025 has swung back toward apartment living.
This shift reflects the return to on-site work, the rise of urban lifestyle preferences, and new apartment launches in prime city locations. Developers like Emaar, Danube, and Azizi have capitalized on this trend with projects designed around co-living, waterfront access, and branded residences.
In 2025, apartments now account for more than 75% of total property transactions, showing a clear preference among both investors and end-users.
Supply Gap
The supply-demand imbalance continues to shape Dubai’s property market in 2025.
While population growth has remained strong, adding nearly 120,000 new residents in the past 12 months, the delivery of new residential units still lags behind.
Industry reports indicate that only around 60,000 new homes are expected for completion in 2025, the majority being apartments.
This gap has contributed to rising rents and price appreciation, especially in mid-market communities such as Jumeirah Village Circle, Arjan, and Dubai South, where affordable apartment inventory is limited.
Tenant Preferences
Apartment Dominance
Tenants continue to show a strong preference for apartment living in 2025.
Recent rental platform data shows 81% of tenants are searching for apartments, compared to 19% for villas or townhouses. Apartments in Dubai Marina, Business Bay, and JVC remain top choices due to accessibility, lifestyle amenities, and competitive rent levels.
Furnished vs. Unfurnished
Tenant preferences remain consistent with previous years, but the share of furnished apartment demand has risen to nearly 68% in 2025, driven by young professionals and newcomers seeking ready-to-move-in options.
In contrast, villa tenants still prefer unfurnished properties (around 57%), reflecting long-term leasing intentions among family renters.
Market Insights
Market Resilience
Dubai’s real estate market has demonstrated remarkable resilience and steady growth into 2025.
According to Property Finder’s 2025 trends report, apartment transactions have grown by over 20% year-on-year, while villa transactions have stabilized after record highs in 2022–2023.
Cherif Sleiman, Chief Revenue Officer at Property Finder, notes that “apartment living continues to dominate demand, driven by population inflows, rental affordability, and urban lifestyle preferences.”
Population Growth
The population boom remains one of the strongest demand drivers.
Dubai’s government projects the population to reach 5.8 million by 2040, keeping long-term housing demand strong. Mortgage leads, buyer registrations, and off-plan sales have surged in 2025, signaling sustained investor and end-user confidence in the apartment sector.
Check out the latest listings of Off Plan Apartments in Dubai
Above image shows the Statistics (Apartments Vs Villas)
Dubai Real Estate: Off-Plan Transactions Surge with Promising Returns
Dubai’s real estate market in 2025 continues to demonstrate exceptional resilience, driven by a significant surge in off-plan transactions and a steady influx of both local and international investors.
Transaction Volume and Value
The off-plan market has maintained strong momentum into 2025, showing robust growth across most segments.
- According to data from the Dubai Land Department (DLD), off-plan sales accounted for over 60% of total property transactions during the first quarter of 2025.
- Monthly transactions averaged 7,000–8,500 units, a year-on-year increase of nearly 40% compared to the same period in 2024.
- The value of off-plan deals reached approximately AED 15.2 billion in April 2025, up from AED 13.9 billion a year earlier, reflecting strong investor confidence and sustained developer activity.
- Top-performing areas include Dubai Maritime City, Business Bay, Jumeirah Village Circle, and Dubai Hills Estate, all seeing notable absorption of new launches.
This consistent rise underscores Dubai’s position as one of the world’s most active off-plan property markets, supported by a mix of international buyers, end-users, and high-net-worth investors.
Appeal of Off-Plan Investments
Off-plan properties remain attractive for several key reasons in 2025:
- Diverse portfolio of projects: Developers like Emaar, Danube, Damac, Azizi, and Sobha continue to unveil landmark residential towers and branded residences across Dubai.
- Flexible payment plans: Buyers are drawn to post-handover payment schemes extending up to 5 years, reducing entry barriers for investors.
- Capital appreciation potential: Off-plan properties launched in 2023–2024 have already seen 15–25% price growth, indicating strong return potential upon completion.
- Branded and waterfront appeal: Projects such as Sofitel Residences by Azha and Breez by Danube highlight Dubai’s growing appetite for lifestyle-driven, branded developments.
Regulatory Evolution and Transparency
Dubai’s regulatory framework continues to evolve in 2025, ensuring greater buyer protection and market stability.
- The Real Estate Regulatory Agency (RERA) enforces the rule that all developers must obtain a primary unit advertising permit before marketing off-plan projects.
- This ensures transparency, prevents misleading promotions, and enhances investor trust.
- The integration of AI-driven property registration and escrow monitoring systems has made transactions more secure and traceable.
Such policies align with Dubai’s 2040 Urban Master Plan and reinforce its position as a global benchmark for real estate governance.
Also Read: Everything You Need to Know About Off-Plan Villa Purchase In Dubai
Market Outlook for 2025
Dubai’s off-plan market shows no signs of slowing down.
- Analysts forecast that over 50,000 off-plan units will be launched in 2025, catering to various segments, from affordable housing to ultra-luxury.
- Investor demand remains strong from markets such as India, Russia, China, and Europe, alongside growing GCC participation.
- Average ROI on off-plan apartments is expected to hover between 7–9% annually, making Dubai one of the most rewarding global property markets.
Future Prospects – Will Apartment Demand Continue to Dominate?
- Developing Areas: Industry experts predict higher demand for apartments and villas in specific areas. Dubai South, along with Sheikh Mohamed bin Zayed Road and Emirates Road, will witness increased interest. The upcoming Dubai Metro’s Blue Line and the shift of operations to Al Maktoum International Airport are driving factors.
- Off-Plan Units: Off-plan units in developing areas, such as Dubai South, JVC, Marjan, Dubailand, Damac Hills, and Silicon Oasis, offer attractive returns for investors. As these areas develop, the population will continue to rise, further boosting demand for apartments.
In summary, Dubai’s real estate landscape is evolving, with apartments taking center stage. Professionals, tenants, and investors are all contributing to this trend, making apartments the preferred choice in the foreseeable future.
