Dubai’s property market is witnessing a remarkable surge, fueled by evolving investor and tenant preferences, according to insights from Property Finder, a leading real estate portal.
In February 2025, Dubai Real Estate market experienced a significant 35% year-on-year increase in transaction volume, reaching 16,099 deals. Simultaneously, the total market value saw an extraordinary 55% jump, amounting to Dh51.1 billion. This growth underscores the increasing appeal of Dubai’s real estate sector to both local and international buyers.
Rising Demand for Smaller Apartments
A notable trend in the apartment segment is the strong demand for compact living spaces, with 71% of buyers opting for smaller units. Specifically, 34% are targeting one-bedroom apartments, while 37% prefer two-bedroom options. Studio apartments maintain a steady demand at 13%. Investors continue to favor prime locations such as Dubai Marina, Downtown Dubai, and Palm Jumeirah, where luxury and connectivity are key attractions.
Villas Gaining Popularity Among Families
In contrast, the villa market is witnessing heightened interest in larger homes, reflecting a growing preference for family-oriented living. A striking 86% of buyers are focused on three-bedroom (39%) or four-bedroom-plus villas (47%). Popular communities such as Dubai Hills Estate, Damac Hills 2, and Al Furjan are emerging as top choices, offering a balance of community amenities and affordability.
Changing Trends in Rental Preferences
The rental market is also undergoing significant transformation. The demand for furnished apartments has risen sharply, with 64% of tenants opting for fully furnished units—up from 45% in 2024. This shift is largely driven by expatriates seeking convenience. Among renters, 20% are choosing studio apartments, while 36% are leasing one-bedroom units, indicating a preference for cost-effective living.
When it comes to rental hotspots, Jumeirah Village Circle (JVC), Deira, and Business Bay are attracting the highest interest. In the villa rental segment, while unfurnished properties continue to dominate (58%), the demand for furnished villas has grown to 42%, compared to 36% in the previous year. Larger living spaces remain a priority, with 80% of renters seeking three-bedroom (41%) or bigger villas, particularly in prime areas like Jumeirah, Dubai Hills Estate, and Al Furjan.
Off-Plan Market on the Rise
Dubai’s off-plan market is experiencing robust growth, with transaction values soaring by 57% year-on-year to Dh20.5 billion. Key areas driving this momentum include Wadi Al Safa 5 and Al Yufrah 1, which recorded sales of Dh2.2 billion and Dh1.4 billion, respectively. Meanwhile, the ready property market remains resilient, with existing property transactions increasing by 27% to 6,997 deals, led by iconic developments such as the Burj Khalifa and Al Yelayiss 1.
Market Evolution and Strategic Adaptation
Dubai real estate landscape is maturing, shaped by shifting investor and tenant preferences. The rise in demand for furnished apartments and off-plan investments highlights Dubai’s appeal to global professionals and entrepreneurs seeking turnkey solutions. Simultaneously, the growing interest in villas underscores the emirate’s emergence as a preferred family destination. Regulatory initiatives, including streamlined business setup processes, are further strengthening Dubai’s position as a hub for long-term capital investment.
Industry experts emphasize the implications of these evolving market dynamics. Investors are balancing high-yield opportunities in compact apartments with luxury villa developments in emerging suburbs. Meanwhile, tenants are increasingly valuing flexibility, with furnished properties minimizing relocation costs for transient professionals.
“As market trends continue to evolve, developers and landlords must strategically align their offerings. The demand is polarized, with compact, ready-to-move-in apartments catering to urban professionals and spacious, customizable villas attracting families,” the report concludes.
Source: https://www.khaleejtimes.com/business/property/shifting-investor-tenant-preferences-fuel-dubai-realty-boom
