The Dubai property market continues to attract global attention in 2025, driven by a unique mix of high rental yields, investor-friendly policies, and cutting-edge urban development. Buyers and investors alike are closely monitoring the market to answer key questions such as: Are Dubai property prices falling? Is it worth buying property in Dubai now? What is the 1% property in Dubai? and What is the minimum salary to buy a house in Dubai? A closer look at current trends reveals a strong start to the year, with Q1 2025 seeing high transaction volumes and increasing demand, especially in prime locations like Downtown Dubai, Business Bay, and Dubai Marina. The luxury real estate sector, in particular, continues to attract high-net-worth individuals, thanks to economic stability, zero property tax, and long-term residency options.
According to the Dubai real estate market forecast 2025, growth is expected to continue throughout the year, with off-plan properties gaining traction due to flexible payment plans and confidence in reputable developers. Reviewing the Dubai property prices last 10 years, the market has shown resilience and recovery, especially after the 2020 dip. From 2021 onwards, the trend has remained upward, with both luxury and affordable segments witnessing gains. Over a 20-year span, the market has matured significantly, overcoming events like the 2008 property crash and the COVID-19 downturn with regulatory improvements and diversified buyer interest. The Dubai Property Price Index for Q1 2025 reinforces this, reporting year-on-year price increases across major communities.
Contrary to concerns, Dubai property prices are not falling in 2025. Most sectors, especially luxury properties and off-plan developments, have posted steady growth. Even affordable housing is seeing rising demand, though buyers should remain cautious in areas with potential oversupply. For many, buying property in Dubai now is a wise move. Investors benefit from rental yields between 5% and 8%, no annual property tax, and 100% foreign ownership in freehold zones. Whether targeting waterfront luxury apartments or budget-friendly off-plan units, the current market offers a broad range of opportunities for well-informed buyers.
A trending topic in 2025 is the 1% property in Dubai, referring to payment schemes where buyers can purchase properties with monthly installments as low as 1% of the total price. These offerings are especially popular among first-time buyers and mid-income investors, but like all off-plan deals, they require thorough checks on developer history and delivery track record. As for affordability, the minimum salary to buy a house in Dubai typically ranges from AED 15,000 to AED 20,000 per month, depending on the financing structure. While banks cap mortgage payments at 50% of income, cash buyers and off-plan investors may face fewer restrictions, though due diligence remains essential.
One of the most prominent trends this year is the rise of off-plan properties and affordable housing. Developers are rapidly expanding projects in areas like Jumeirah Village Circle (JVC), Dubai South, and Arjan, catering to a growing population and middle-income buyers. At the same time, premium zones such as Palm Jumeirah, Downtown Dubai, and Dubai Hills Estate continue to draw global interest for their prestige, return potential, and lifestyle amenities.