Dubai coastal real estate continues to rise in price
The Dubai real estate market maintains strong interest in coastal properties. Over the past five years, the value of luxury waterfront real estate has increased by more than 140%, with Palm Jumeirah remaining one of the leaders in price growth.
At the same time, supply in the secondary market remains limited: owners of such properties rarely put them up for sale, preferring long-term ownership. Against the backdrop of steady demand from wealthy buyers, this continues to support the rise in property values.
According to research, properties located by the water are on average 128% more expensive than similar real estate located away from the coast.
Buyers are choosing established coastal communities
The greatest interest today is focused on already established areas with developed infrastructure and a high quality of life.
Buyers most often choose residential complexes that offer:
- direct beach access;
- yachting infrastructure;
- a high level of privacy;
- low-density development;
- comprehensive service infrastructure.
It is the combination of these factors that allows such locations to maintain high demand among both homebuyers looking for a primary residence and investors.
Palm Jumeirah maintains its lead
Palm Jumeirah remains one of the most sought-after coastal areas in Dubai and continues to demonstrate the highest rates of real estate price growth.
Limited supply in the secondary market and long holding periods for properties restrict the number of available options for purchase, which supports further price increases.
High interest also remains for real estate in the following areas:
These locations attract buyers with their established infrastructure, high level of service, and convenient access to the coastline.
Investors are increasingly evaluating specific property features
While the neighborhood used to be the primary selection factor, buyers today are paying significantly more attention to the specific characteristics of the property itself.
The highest price premiums are commanded by properties that feature:
- direct beach access;
- unobstructed panoramic sea views;
- spacious open terraces or private plots of land;
- proximity to yacht marinas.
Waterfront villas are showing particularly notable price growth, as the volume of new supply in the most prestigious coastal areas remains limited.
High demand supports the rental market
Coastal real estate remains highly sought after not only by buyers but also by tenants.
By the end of 2025, luxury waterfront apartments and villas provided gross rental yields of 5–8%. Stable demand for long-term rentals makes such properties attractive to investors focused on generating regular income.
The ultra-premium real estate segment continues to grow
Dubai's high-end real estate market is also showing steady development.
During 2025, 500 residential property transactions valued at over 10 million USD (36.7 million AED) were recorded. The total volume of these sales reached 9.05 billion USD (33.24 billion AED), which is 27.7% higher than the previous year's figure.
The ultra-prime market, featuring properties valued at over $25 million (AED 91.8 million), saw 68 transactions, setting a new annual record.
In the fourth quarter of 2025 alone, 143 transactions exceeding $10 million were recorded, up from 103 in the previous quarter.
Four of the five most active luxury real estate districts were located along the coast, accounting for more than half of all sales for properties priced above $10 million.
Buyers are willing to pay a premium for waterfront living
Research into the preferences of UAE residents reveals a sustained interest in coastal real estate.
According to the survey results:
- 82% of respondents are considering purchasing a home by the sea or near a marina within the next three years;
- 93% are willing to pay a premium for a waterfront property;
- 99% believe that proximity to the coast has a positive impact on the long-term value of real estate.
Furthermore, the majority of survey participants noted that living by the sea enhances the quality of leisure time and contributes to physical and emotional well-being.
Limited supply continues to drive price growth
Experts note that Dubai's limited coastline and the long lead times for new projects make it difficult to quickly increase supply in the most sought-after coastal areas.
Additional factors include strict urban development requirements and high demand for established communities with well-developed infrastructure.
At the same time, buyers are becoming increasingly discerning, evaluating not only the prestige of the area but also the quality of floor plans, actual water access, building density, and the standard of public spaces.
What this means for the Dubai real estate market
The continued rise in coastal property values confirms strong investor interest in the limited supply within the emirate's most prestigious districts. Waterfront properties maintain high capital appreciation potential, steady rental demand, and limited competition from new supply.
For long-term investors, this remains one of the most resilient segments of the Dubai real estate market, where value is driven not only by location but also by the quality of infrastructure, level of service, and the scarcity of available properties.
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