What is the average cost of a home in Dubai?
If you’re benchmarking the “average cost of a home in Dubai” in mid‑2025, a practical way to think about it is by price per square foot. Recent market trackers place Dubai’s citywide average around AED 1,600 per sq ft. That translates to typical buyer budgets of roughly AED 1.3M–2.0M for 1–2 bedroom apartments and AED 3M–5M for family villas, depending on location, age, view, and finish. This aligns with 2024’s strong price gains and new 2025 highs seen in independent market reports from Deloitte, CBRE, and Property Monitor, with July 2025’s average hitting about AED 1,625 per sq ft across Dubai’s sales market.
Key takeaways at a glance
- The cleanest benchmark for “average” is the all-city price per square foot. As of mid‑2025, this sits in the AED 1,600–1,625 per sq ft band, up about 20% year-over-year through 2024 and making new highs in 2025, according to Deloitte and Property Monitor.
- Converting psf into real budgets: most end‑users find 1–2BR apartments cluster around AED 1.3M–2.0M for mainstream freehold areas, with prime addresses costing more. Family villas and townhouses often start near AED 3M and commonly trade between AED 3.5M–6M depending on community, plot, and build.
- Off‑plan remains dominant. In April 2025, Property Monitor observed off‑plan’s adjusted share around 70% of transactions, with ready resales softening slightly while prices continued higher. This dynamic shapes available supply, incentives, and pricing power across the city Property Monitor.
- 2024 was exceptional. Deloitte reports average sales prices rose about 20% in 2024 to AED 1,597 per sq ft, with gross rental yields around 6.7%—a key context for affordability and investor returns going into 2025 Deloitte.
A quick note on “averages”
Dubai is a segmented market: waterfront vs. inland, new vs. older stock, branded vs. non‑branded, and community amenities all move price bands. Averages are a starting point; your real budget depends on the micro‑market and unit specifics. The figures below are illustrative conversions from recent psf averages to help you plan.
What the 2025 averages mean in dirhams
The latest benchmarks
- Property Monitor’s monthly tracking shows the citywide average reached about AED 1,609 per sq ft in June 2025 and about AED 1,625 per sq ft in July 2025—both all‑time highs Property Monitor.
- Deloitte’s Dubai 2025 outlook highlighted that 2024 average sales prices rose by roughly 20% to AED 1,597 per sq ft, with yields around 6.7% Deloitte.
- CBRE’s UAE reviews provide macro confirmation of continued price growth into 2024 and 2025 as demand outpaced new supply in many submarkets CBRE.
- Statista tracks the long‑term trend of Dubai’s average residential prices per square foot, showing the recovery from 2020 through 2023 and beyond Statista.
Together, these sources frame a realistic band for 2025: approximately AED 1,600–1,625 per sq ft citywide average, with wide variation by community and asset quality.
Typical buyer budgets by home type
Below is an estimation table that converts the current citywide average psf into ballpark purchase budgets for common home types and sizes. These are not quotes; they’re planning figures to help you compare options. Premium waterfront or branded stock can command higher psf; older or peripheral stock can be lower.
| Home type | Typical size (sq ft) | Illustrative psf (AED) | Estimated purchase price (AED) |
|---|---|---|---|
| 1BR apartment | 750–900 | ~1,600 | ~1.2M–1.45M |
| 2BR apartment | 1,100–1,300 | ~1,600 | ~1.75M–2.1M |
| 3BR apartment | 1,500–1,800 | ~1,600 | ~2.4M–2.9M |
| 3BR townhouse/villa | 2,200–2,800 | ~1,350–1,550 | ~3.0M–4.3M |
| 4BR villa | 3,200–4,000 | ~1,300–1,500 | ~4.2M–6.0M |
| 5BR villa | 4,500–6,000 | ~1,250–1,500 | ~5.6M–9.0M |
How to use this: choose your target layout, pick a community quality band (mainstream vs. prime), and apply the appropriate psf. For newer, centrally‑located buildings or waterfront stock, use the higher end of the psf band; for older or outer‑ring communities, shade toward the lower end.
What pushes the “average” up or down?
Apartments vs. villas
Apartments typically transact at higher psf than villas due to central locations, views, amenities, and branded residences. Villas and townhouses have larger footprints, lower psf on average, but higher total ticket prices. Deloitte notes villas outpaced apartments in 2024 price growth, which, combined with scarce supply in popular family communities, keeps villa totals elevated even when psf is slightly lower Deloitte.
Off‑plan vs. ready
Off‑plan launches surged with flexible payment plans and modern amenities, capturing roughly 70% adjusted market share in April 2025. This deep pipeline supports buyer choice but also changes the mix of transactions at any given time, affecting headline averages Property Monitor. If you’re value‑driven and patient, off‑plan can offer staged payments and potential early‑bird pricing. If you want immediate use or income, ready stock provides certainty.
Micro‑market premiums
Downtown and prime waterfront stacks with landmark views and five‑star amenities sit well above city averages; popular mid‑market freehold communities (for example, master‑planned suburban hubs) often cluster around or below the city average, and emerging areas can be meaningfully below. For live, neighborhood‑level snapshots and transaction streaks, DXB Interact provides handy dashboards you can browse alongside advisory from a licensed agent DXB Interact, DXB Interact house prices.
The total cost of buying goes beyond headline price
Purchase price is step one. You should also budget for transfer fees, trustee fees, agency fees, mortgage registration (if financing), and ongoing service charges. For a clear, step‑by‑step breakdown tailored to Dubai, West Gate’s in‑house guide covers all the line items and typical ranges in detail, including off‑plan Oqood registration and DEWA setup. See: “What are the costs of buying property in Dubai?” on West Gate’s blog for a full checklist and current ranges: Costs of buying property in Dubai.
If you’re weighing cash vs. mortgage, West Gate also summarizes local financing routes and documentation in “Property financing in Dubai”: Property financing in Dubai and offers focused advice for expats: Dubai mortgage advice for expats.
Is now a good time to buy in Dubai?
The macro context
- Pricing momentum: Multiple independent sources confirm that 2024 was strong and 2025 began with new price highs. Deloitte cites a 20% sales price rise in 2024; Property Monitor shows successive record months into mid‑2025 Deloitte, Property Monitor.
- Supply and absorption: CBRE’s UAE reviews point to elevated demand meeting measured new supply, varying by segment. Late‑2025 deliveries may stabilize the pace, but underlying demand remains firm in most communities CBRE.
- Yields remain attractive: Gross rental yields of ~6–7% are compelling relative to many global gateway cities, supporting investment appetite alongside end‑user demand Deloitte.
For a big‑picture investor’s view, West Gate’s long‑form resources are a great primer:
- Why invest in Dubai’s real estate market in 2025: Why invest in 2025
- Is investing in Dubai real estate worth it in 2025?: Worth it in 2025?
- Dubai real estate investment guide: Investment guide
- Buy property in Dubai: step‑by‑step guide: Buy property guide
Where West Gate Dubai fits in
West Gate Dubai has been helping buyers, sellers, landlords, and investors navigate this market since 2005. Beyond access to on‑market listings, we maintain a much deeper bench of off‑market and pre‑launch opportunities you won’t find on portals. If you want end‑to‑end support—from shortlisting to negotiation to handover and rental setup—our team can handle it seamlessly.
- Explore homes for sale across Dubai’s key communities: Properties for sale.
- If passive income is your focus, our leasing team can help land bankable yields: Properties for rent.
- Keen on payment plans and brand‑new inventory? Browse hand‑picked off‑plan projects: Off‑plan projects in Dubai and our off‑plan explainer post: Off‑plan properties guide.
- Already own a property? We can manage it end‑to‑end—tenanting, maintenance, compliance, and reporting—so you maximize yield without the hassle: Property Management by West Gate.
“With prices setting new records in 2025, the agents and analysts you choose matter. We combine real‑time market intelligence with hands‑on deal execution so buyers don’t overpay and sellers capture full value.”
And yes, we have many more properties than what’s currently visible online. Tell us what you’re looking for and we’ll send a curated short‑list within hours. Simply fill out the form—one of our professional agents will contact you with tailored options: Contact West Gate.
FAQs: pricing and affordability in 2025
How much is the average price per square foot in Dubai right now?
Citywide averages hovered around AED 1,609 per sq ft in June 2025 and AED 1,625 per sq ft in July 2025, per Property Monitor’s monthly reports. Deloitte’s 2024 wrap placed the year’s average at AED 1,597 per sq ft, up ~20% year‑over‑year, which sets the base for 2025’s new highs Property Monitor, Deloitte.
What does that mean in simple terms?
At roughly AED 1,600 per sq ft, a 1BR of about 800 sq ft pencils to about AED 1.28M, a 2BR of about 1,200 sq ft to about AED 1.92M, and a 3BR villa of about 2,500 sq ft to roughly AED 3.25M—before fees. Prime addresses, top views, and branded residences cost more; older/peripheral stock can be less.
What kind of fees should I plan for?
Plan for transfer (DLD) and trustee fees, agency commission, mortgage registration if financing, and service charges. West Gate’s dedicated guide lists each line item so you can budget accurately: Costs of buying property in Dubai.
Are rents keeping up with prices?
Deloitte indicates rents rose roughly 19% in 2024, and yields remain around 6–7% on average—healthy by global standards for a major hub city. This helps investors justify acquisitions even as capital values rise Deloitte. For area‑by‑area rental snapshots, DXB Interact provides useful dashboards: Dubai rent and price pages.
Should I buy off‑plan or ready?
Off‑plan offers payment flexibility and the newest concepts. Ready offers immediate occupancy and rental income. The market is currently weighted to off‑plan by transaction count, but the right fit depends on your timeline and risk profile. Start here: Off‑plan projects and our explainer: Off‑plan properties guide.
A step‑by‑step path to your target budget
1) Set your band using psf math
Start with the city’s current average (~AED 1,600–1,625 per sq ft), then adjust up or down for your target community and building age. If you’re aiming for a prime tower with a landmark view, add a premium. If you’re buying an older unit in an outer ring, shade the psf down.
2) Calibrate against real listings
Use live listings to refine. Shortlist 8–12 comps that match your layout, community, and condition. West Gate can do this for you and provide negotiation context, upcoming supply, and expected days‑on‑market for each shortlist.
3) Add transaction costs and carrying costs
Layer in fees and annual service charges to get to your “all‑in” number. West Gate’s guides keep this simple: Costs of buying.
4) Decide on financing
Dubai offers traditional mortgages and developer plans (on off‑plan). Compare effective rates, fees, and post‑handover payment schedules. Start here: Property financing.
5) If investing, model yield
Match expected net rent to your purchase price and service charges. Yields around 6–7% are common at the city level, with variance by micro‑market and unit type. Our leasing and management teams can underwrite actual achievable rent and handle tenanting and upkeep: Property Management.
Explore more from West Gate Dubai
- Market trends and how Dubai stacks up globally: Dubai real estate market trends, How Dubai compares to other markets.
- ROI and strategy deep‑dives: What is the ROI for properties in Dubai?, Unlock Dubai real estate ROI.
- Seasonal timing and negotiation tips: Best time to buy or sell, Buyer’s guide.
When you’re ready to move from research to results, browse live inventory for sale or for rent, or tap our off‑plan desk for early access: For Sale, For Rent, Off‑plan.
And remember, we can show you far more than what’s listed. Share your brief and a West Gate advisor will call you back with handpicked options: Contact us.
This guide is informational and reflects market data available as of mid‑2025. For a tailored valuation, neighborhood‑level comps, and off‑market options that fit your budget, start a conversation with West Gate Dubai: Get in touch.
