Content
Introduction
Interested in Dubai property? You are not alone. The city continues to be a global magnet for investors attracted by its dynamic market, high rental yields and favourable tax environment. The first half of 2025 broke all records for transaction volume, but the market is entering a new, more mature phase.
The question is no longer simply“Where is the best value?” but “When is the right time and how do we position ourselves for the future?”. This analysis offers the latest data on prices per square metre, rental yields and reveals the forecasts that will shape the market in 2026.
Overview: Record 2025 and Expected correction in 2026
Dubai’s real estate market has shown phenomenal growth in 2025. According to data from the UAE’s largest property portal, the second quarter was a record-breaker with over 53,000 transactions worth AED 184 billion. Apartment prices were up around 16.5% year-on-year.
However, leading analysts such as Fitch Ratings are forecasting a modest 10-15% correction towards the end of 2025 and into 2026. The expected completion of over 120,000 new homes, which will increase supply. This is not a signal of a crash, but of market normalization – and creates a strategic window for informed investors.
Factors affecting prices per square meter:
- Location. The difference between an affordable and upscale area can be over 300%.
- Property type: apartments, villas, townhouses.
- Status: off-plan properties often offer a lower entry price and flexible payment schemes.
- Quality and amenities: luxury buildings with swimming pools, gyms and concierge services have a higher price.
- Builder reputation: proven builders maintain a higher value.
Where is the most profitable? The most affordable areas for investment (Data for the first half of 2025 .)
For investors looking for cheap Dubai property with high yields, several areas stand out for their excellent balance between price and potential.
(Note: Euro prices are approximate at an exchange rate of 1€ ≈ 4 AED)
1. Jumeirah Village Circle (JVC)
- Prices: average around AED 1,150/sq ft (approx €2,900/sq m). Prices for finished studios and one-bedroom apartments range between AED 750,000 and AED 1.5 million (€187,500 – €375,000).
- Rental yield (ROI): Excellent, average 7.82%.
- Why it’s profitable: JVC is the absolute leader in number of deals. The area offers a sense of community, parks and good infrastructure, making it ideal for young professionals and families. Consistent rental demand ensures steady cash flow.
2. Arjan (Dubailand)
- Prices: average around AED 1,370/sq.ft (approx. €3,450/sq.m).
- Rental yield (ROI): High, 7.90% on average.
- Why it’s advantageous: Strategically located next to key roadways, Arjan is a hub for new off-plan projects. Investors here benefit from lower entry prices and huge potential for capital growth when projects are completed in 2026 and beyond.
3. Dubai Investment Park (DIP)
- Prices: offers some of the most affordable prices, averaging AED 800/sq ft (approx €2,000/sq m).
- Rental yield (ROI): One of the highest in Dubai, averaging 9.44%.
- Why it’s advantageous: DIP is a self-sufficient “city within a city” with its own industrial, commercial and residential area. Its proximity to Expo City and Al Maktoum Airport makes it a strategic investment for the future, focused on maximizing rental yield.
4. Al Furjan
- Prices: average around AED 1,050/sq ft for apartments (around €2,625/sq m).
- Rental yield (ROI): stable, on average 7.10% for apartments.
- Why it’s a bargain: Developed by Nakheel, Al Furjan is a mature community with excellent infrastructure, including its own metro station. The area offers both apartments and villas, and is favoured by families for its peaceful environment and amenities.
5. International City
- Prices: lowest in Dubai, average AED 725/sq.ft (approx. €1,812/sq.m).
- Rental yield (ROI): Very high, 9.10% on average.
- Why it’s a bargain: This is the area for investors looking for maximum return on a minimum initial investment. While it doesn’t offer the luxury of other areas, it provides a steady rental income because of its affordable prices.
Comparison with luxury areas in Dubai
To get a full picture of the market, here are the current prices and yields in the most prestigious areas:
| District | Average price (AED/sq.ft.) | Average price (€/sq.m) | Return on rent (ROI) |
| Palm Jumeirah | 3,888 | 9,720€ | 5.50% |
| Downtown Dubai | 3,168 | 7,920€ | 5.89% |
| Dubai Marina | 2,150 | 5,375€ | 6.80% |
| Business Bay | 2,030 | 5,075€ | 6.93% |
These luxury properties in Dubai offer prestige, lifestyle and stable long-term capital appreciation, but with lower percentage rental yields compared to affordable areas.
Benchmarking for investors
| District | Investor Profile | Main advantage | Future potential |
| JVC | Seeking balance | High yields and strong rental demand | Stable growth |
| Arjan | Seeking capital growth | Potential for off-plan appreciation | High (many new projects) |
| DIP | Seeking maximum yield | Highest rental yield | Strategic (before Expo) |
| Al Furjan | Seeking security | Mature community, good infrastructure | Stable |
| Downtown Dubai | Seeking prestige and status | Prestigious location, lifestyle | High (blue chip investment) |
Investment tips in 2025/2026
- Define your goal: Are you looking for quick rental income (like in a DIP) or long-term capital growth (like in Arjan)?
- Keep an eye on the market correction: the expected slowdown in 2026 could open up excellent buying opportunities at lower prices. Be ready to act.
- Consider off-plan properties: they offer better prices and flexible payment schemes, allowing you to benefit from capital growth during construction.
- Work with an expert: A licensed broker who knows the market in depth can save you time and money, and guide you to the best properties in Dubai for your goals.
Conclusion
The Dubai property market remains one of the most attractive arenas for investment in the world. While luxury areas retain their glamour, areas such as Jumeirah Village Circle, Arjan and Dubai Investment Park offer exceptional value, high rental yields and huge potential for future growth.
With the right strategy and an eye on future market trends, now is the time to explore the opportunities and make your informed and profitable investment.
This post is also available in: Български (Bulgarian)
