Dubai’s residential price index rose 9.81% in 2025 compared with 2024, with villas increasing faster than apartments. Offices recorded a larger increase than either residential category. The figures describe a past reporting period; they do not tell you what a particular property is worth today.
The results come from Dubai Data and Statistics Establishment, part of Digital Dubai. WAM reported the release on 19 May 2026, identifying it as the fourth-quarter 2025 Commercial and Residential Real Estate Price Index and reporting the following annual changes.
The 2025 figures in one place
| Property category | Annual price-index change |
|---|---|
| Residential overall | +9.81% |
| Villas | +14.83% |
| Apartments | +7.38% |
| Commercial overall | +9.54% |
| Offices | +15.86% |
| Retail shops | +11.52% |
| Hospitality overall | +4.80% |
| Hotel apartments | +6.25% |
| Hotel rooms | +0.85% |
The overall indices and their individual categories should not be added together. They describe different groupings within the market.
A higher index is not a higher rental yield
A price index tracks changes in property prices. Rental yield measures income relative to a property’s cost or value, depending on the calculation. Neither is the same as the owner’s total return after expenses.
For example, a villa’s reported category growth of 14.83% does not mean its owner collected 14.83% in rent. It also does not mean every villa gained that amount. Location, condition, plot, layout and the timing of individual transactions can produce different outcomes.
Villas, apartments and offices need different comparisons
For a home: start with space, commute, privacy and ongoing costs. A villa category’s stronger historical growth does not make a villa the right purchase for someone whose budget or daily life suits an apartment. Our apartment, townhouse and villa comparison helps separate those choices.
For an office: look at the actual occupier and building. Permitted use, access, parking, fit-out requirements, lease terms and competing space matter.
For either investment: ask for recent comparable transactions and realistic rent evidence. Compare similar properties, then allow for service charges, maintenance, vacancy and financing where relevant. A higher purchase price can reduce the income return even in a market that has been growing.
What does this say about buying in 2026?
It gives you a historical benchmark. It does not establish the direction of prices in September 2026, prove that a seller’s asking price is fair, or forecast the next year’s return.
Use the index to understand how broad categories performed, then bring the decision back to current evidence for the property you want. Be especially careful when a sales presentation applies an old citywide growth rate to a new project’s projected resale value.
Share your budget, intended use and buying timeframe with Seven Stones. We can help narrow the property type and the comparisons needed before you decide.
