Dubai’s real estate market has seen notable growth in the first months of 2025, with beachfront locations leading the surge in demand, according to a report from Wellington Developments.
Beachfront sales dominate
Waterfront destinations accounted for a major share of market transactions, offering high rental yields and drawing strong interest from both local and international investors.
Palm Jebel Ali topped the list with over Dhs 11.3 billion in property sales between January and April. Other leading areas included Palm Jumeirah (Dhs 5.87 billion), Dubai Maritime City (Dhs 5.2 billion), Dubai Marina (Dhs 4.93 billion), and Dubai Islands (Dhs 4.86 billion).
Additional strong performers were Dubai Water Canal, Dubai Harbour, Jumeirah Beach Residence, and Jumeirah Bay, each recording sales nearing or exceeding Dhs 1 billion.
Strong investor interest
Commenting on the trend, Syed Reza, General Manager of Wellington Developments, said: “Waterfront real estate developments are among the strongest attractors for both resident and non-resident investors, especially from Europe, Russia, and Asia, who are looking for a luxurious lifestyle. These properties also tend to yield higher medium- and long-term investment returns inland alternatives, consistently achieve high occupancy rates—particularly during peak tourist seasons—making them especially appealing to investors seeking reliable rental income.”
Reza also noted Palm Jebel Ali’s sharp rise: “Palm Jebel Ali has recently emerged as one of Dubai’s most prominent investment destinations, with robust sales exceeding Dhs 11 billion in the first four months of 2025.”
Rental returns and pricing
Dubai Islands are among the top locations for rental yields, offering 5%–7% returns on long-term leases and up to 10% on short-term stays. Prices in luxury areas like Palm Jumeirah have risen by 20% year-on-year.
The average property price across Dubai stands at approximately Dhs 2.5 million, with expected growth of around 8% in 2025. In contrast, areas like Jumeirah Village Circle provide more budget-friendly entry points, with average apartment prices around Dhs 689,000.
Dubai’s property market saw a 23% rise in transaction volumes in Q1 2025 compared to the same period last year. Residential property prices also increased between 8% and 11%, underlining sustained demand.
Developer focus
Speaking on Wellington’s project strategy, Reza added: “At Wellington Developments, we prioritize quality over quantity in every aspect of our real estate projects. Our commitment is to deliver premium products to our clients and partners.”
The company is currently working on an exclusive Dhs 400 million residential compound in Meydan, in addition to projects in Palm Jumeirah, Dubai Islands, and Dubai Hills.
tanvir@dubainewsweek.com
