Studios and one-bedroom apartments are seeing rising demand in Dubai, as more renters explore home ownership to counter increasing rental prices. According to Property Finder’s latest market data for August 2025, this shift in consumer behaviour is playing a growing role in shaping the city’s real estate activity.
Rising interest in smaller homes
Apartments accounted for nearly 80% of rental searches and 59% of buyer interest, with smaller units gaining the most traction. Studios made up 22% of rental searches but just 16% of buyer demand, suggesting a growing interest from renters now considering purchase options.
One-bedroom apartments attracted 40% of rental searches and 36% of buyer queries, reflecting their appeal as more affordable entry points into property ownership.
The trend highlights a broader shift among residents prioritizing long-term financial stability and property investment over renewing leases amid rising rents.
Strong performance in August
Dubai recorded 18,564 property transactions in August, with a total value of Dhs 50.7 billion, marking a 15% annual increase in transaction volume and a 7% rise in value, compared to August 2024.
This growth was driven by continued strength in both the off-plan and secondary markets.
Off-plan activity leads growth
Off-plan transactions rose 25% in volume and 11% in value year-on-year. The primary market accounted for 12,106 deals, a 20% increase from August 2024. Off-plan sales dominated, making up 91% of all primary transactions.
Business Bay was a key performer, contributing 11% of transaction volume and 12% of overall value, with sharp annual growth of 377% in volume and 290% in value. Dubai Investment Park also posted strong numbers, representing 9% of both value and volume in the primary market.
Secondary market
The secondary sales market registered 6,458 transactions worth Dhs 22.6 billion, up 15% in value and 7% in volume compared to August last year.
Emerging communities saw standout growth. Wadi Al Safa 4 recorded Dhs 786 million in sales, up from just Dhs 26 million in August 2024. Al Barsha South Fourth saw transaction values rise 154%, while volume increased 142%.
Cherif Sleiman, Chief Revenue Officer at Property Finder, noted: “August’s figures offer a clear picture of Dubai’s real estate market strength, driven by an off-plan surge and bolstered by consistently healthy secondary activity. What’s remarkable this month is how neighbourhoods like Business Bay and Wadi Al Safa 4 are outperforming the broader trend, demonstrating that both investor confidence and demand for emerging communities remain elevated.
“This is further supported by broader market signals, including Emaar’s announcement of a 33% jump in H1 profits – which reflects the underlying demand in high-end segments – as well as developers bringing construction in-house to meet surging demand and ensure delivery speed. These moves affirm Dubai’s proactive market stewardship and its appeal to both end users and investors. As developers adjust strategies, and policy measures continue to stabilize the market, Property Finder stands ready to equip stakeholders with timely insights that help them make smart, forward-looking choices.”
tanvir@dubainewsweek.com
