Dubai Real Estate Market Overview - August 2025
The Dubai real estate market continues its impressive performance into mid-2025, marking August 2025 as one of the most dynamic months in recent years. With record-breaking transactions and notable growth in key segments, Dubai solidifies its position as a top destination for property investors globally. This comprehensive guide delves into the Dubai property market trends, prices, and investment opportunities that shaped August 2025 — offering actionable insights for buyers, investors, and analysts.
Rental Yield Report - August, 2025
| Neighborhood | Studio (AED) | Studio Yield | 1-BR (AED) | 1-BR Yield | 2-BR (AED) | 2-BR Yield | 3-BR (AED) | 3-BR Yield |
| Jumeirah Village Circle | 41,000 | 6.63% | 60,000 | 6.25% | 85,700 | 5.91% | 115,300 | 4.43% |
| Business Bay | 63,000 | 6.18% | 75,200 | 5.45% | 110,000 | 4.89% | 180,000 | 4.93% |
| Dubai Hills | – | – | 87,300 | 5.98% | 150,000 | 6.52% | 250,000 | 5.43% |
| Downtown Dubai | 80,000 | 6.76% | 115,000 | 5.18% | 175,500 | 4.28% | 275,000 | 4.74% |
| Palm Jumairah | 78,800 | 5.25% | 135,000 | 3.65% | 189,800 | 4.08% | 245,000 | 3.77% |
| Dubai Creek Harbour | – | – | 90,000 | 5.07% | 135,000 | 5.09% | 197,800 | 5.19% |
| Dubai Marina | 60,000 | 6.25% | 90,000 | 5.86% | 136,200 | 5.86% | 216,300 | 6.98% |
| Dubai South | 42,000 | 8.08% | 42,000 | – | 62,000 | 6.04% | 70,000 | – |
| JLT | 57,000 | 7.86% | 77,000 | 6.50% | 114,000 | 6.00% | 137,500 | 5.29% |
| Dubai Harbour | – | – | – | – | – | – | – | – |
| Dubai Maritime City | – | – | 87,000 | 4.41% | – | – | – | – |
| Jumeirah Garden City | – | – | 63,100 | 4.81% | 84,500 | 4.14% | – | – |
| Arjan | 43,800 | 7.85% | 60,000 | 6.32% | 90,000 | 6.29% | 99,600 | – |
| Jabal Ali first | 37,000 | 7.18% | 55,700 | 7.14% | 69,900 | 5.64% | 80,500 | 3.62% |
| Al Hebiah Fifth | 34,300 | 7.15% | 47,000 | 6.91% | 65,200 | 5.93% | 92,600 | 5.45% |
| Al Merkadth | 45,000 | 6.62% | 78,000 | 5.63% | 110,100 | 4.32% | 197,500 | 6.17% |
| Nadd Hessa | 36,900 | 8.58% | 50,000 | 7.45% | 68,300 | 5.76% | 105,000 | 6.65% |
Capital Appreciation Report - August, 25 vs 2024
**Price Per Square Foot For Off Plan Project
| Neighborhood | Studio (AED) | Appreciation | 1-BR (AED) | Appreciation | 2-BR (AED) | Appreciation | 3-BR (AED) | Appreciation |
| Jumeirah Village Circle | 1,800 | 7.78% | 1,530 | 10.87% | 1,400 | 7.69% | 1,270 | -4.51% |
| Business Bay | 2,740 | 5.38% | 2,720 | 11.48% | 2,550 | 1.59% | 3,020 | -1.95% |
| Dubai Hills | 2,230 | -0.89% | 2,540 | 1.60% | 2,540 | 0.40% | ||
| Downtown Dubai | 3,160 | 10.10% | 3,010 | 5.99% | 3,220 | 13.78% | 4,210 | 15.98% |
| Palm Jumairah | 2,660 | -23.56% | 4,220 | 0.48% | 4,500 | -9.64% | ||
| Dubai Creek Harbour | 2,400 | -5.51% | 2,320 | -2.11% | 2,330 | -2.92% | ||
| Dubai Marina | 7,920 | 110.64% | 3,180 | 7.80% | 3,330 | 41.70% | 2,700 | -5.92% |
| Dubai South | 1,120 | -0.88% | 1,160 | 11.54% | ||||
| JLT | 2,420 | -10.04% | 2,330 | 1.75% | 2,260 | 2,040 | -8.93% | |
| Dubai Harbour | 3,680 | -23.33% | 3,320 | -15.95% | 3,140 | -26.64% | ||
| Dubai Maritime City | 2,770 | 3.75% | 2,360 | -9.92% | 2,370 | -8.85% | 2,570 | -4.10% |
| Jumeirah Garden City | 2,300 | 5.99% | 2,120 | 12.77% | 1,970 | 9.44% | ||
| Arjan | 1,570 | 1.29% | 1,400 | 2.94% | 1,360 | 6.25% | 1,300 | 4.00% |
| Jabal Ali first | 1,610 | 1.90% | 1,320 | 2.33% | 1,280 | 0.79% | 1,270 | 3.25% |
| Al hebiah Fifth | 1,730 | 0.58% | 1,760 | 1.15% | ||||
| Al Merkadth | 2,310 | -8.33% | 2,050 | -5.96% | 2,120 | 0.47% | 1,890 | -4.06% |
| Nadd Hessa | 1,950 | -1.52% | 1,660 | -4.60% | 1,590 | -0.63% | 1,440 | 5.88% |
Key Insights at a Glance – August 2025
Capital Appreciation (YoY): Strong upward momentum in prime areas like Dubai Marina and Downtown Dubai, while Palm Jumeirah, Dubai Creek Harbour, and Dubai Harbour faced notable declines.
Rental Yields (YoY): High yields are seen in outer communities like Dubai South, Arjan, and Nadd Hessa, especially in studios and smaller units.
Market Shift: Investors are increasingly favoring mid-income neighborhoods offering better ROI and more consistent capital growth—signaling a shift away from traditional luxury zones.
Rental Yield Analysis – August 2025
Studios: Nadd Hessa (8.58%), Dubai South (8.08%), and JLT (7.86%) top studio yields. Arjan and Jabal Ali First also outperform average studio ROI. These areas remain highly attractive for yield-focused investors.
1-Bedrooms: Jabal Ali First (7.14%), Nadd Hessa (7.45%), and JLT (6.50%) lead 1BR yields, making them highly attractive for entry-level investors.
2 & 3-Bedrooms: Dubai Marina’s 3BR (6.98%) and Nadd Hessa’s 3BR (6.65%) offer top-tier yields. Dubai Hills and JLT also rank strong for 2BR performance.
Capital Appreciation Trends – August 2025 vs 2024
Highest Growth (YoY): Dubai Marina leads with a staggering +110.64% studio appreciation, followed by Downtown Dubai 3BR at +15.98% and Jumeirah Village Circle 2BR at +13.78%. Jumeirah Garden City and Dubai Hills also posted strong gains across multiple unit types.
Mixed Performance: Areas like Business Bay and Dubai Hills show positive appreciation in some segments (e.g. 3BR in Dubai Hills at +0.40%) but drops in others like 1BR and Studio.
Emerging Hotspots: Arjan, Jabal Ali First, and Al Hebiah Fifth reflect moderate but consistent gains across categories—indicating potential for mid-term investors.
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The Dubai real estate market is set to maintain its momentum in the second half of 2025. With diversified demand across asset classes, growing rental yields, and new infrastructure adding value to various districts, Dubai continues to offer strong prospects for both end-users and investors. Buyers are advised to balance short-term trends with long-term fundamentals, leveraging market data to make informed decisions.
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