Overview
Business Bay remains one of Dubai’s most sought-after mixed-use districts thanks to its central location, high-rise panorama, and strong investment profile. In Q2 2025, demand persisted robustly across both secondary sales and off-plan launches, driven by luxury apartments and a growing family-oriented residential base. Renewed shift toward waterfront living further boosted interest. facebook.com+15hausandhaus.com+15hausandhaus.com+15
Key Metrics
Metric | Q2 2025 Change vs Q1 2025 | Q2 2025 Change vs Q2 2024 |
---|---|---|
Avg. Sale Price (apartments) | ↑ 2–4 % | ↑ 8–10 % |
Rental Rates | ↑ 3 % | ↑ 12 % |
Off-Plan Sales Volume | ↑ 5 % | ↑ 20 % |
Supply of New Units | + 1,200 delivered | + 30 % YoY |
Note: Sales figures are in AED per sq ft; rental rates reflect asking prices.
Sales Market
- Secondary apartment prices rose 2–4 % from Q1, with high-spec 2-3 beds leading growth on waterfront towers.
- Off-plan launches (especially in Peninsula 6 and Vela Viento) saw strong absorption — Peninsula 5 units sold out within two weeks, with average values up 8–10 % YoY. youtube.com+8podcasts.apple.com+8hausandhaus.com+8hausandhaus.com
Rental Market
- Average rents increased ~3 % quarter-on-quarter; YoY growth reached ~12 %, propelled by demand from professionals and families.
- Yield compression persists, but waterfront towers continue to offer attractive 5–6 % gross yields.
Supply & Inventory
- Q2 delivered approximately 1,200 new units, including beachfront collections and premium high-rises.
- Off-plan pipeline remains robust, with 5–7 new towers scheduled for H2 2025.
Market Drivers
- Waterfront Appeal: Projects like Peninsula and Vela Viento maintain investor traction for their views and lifestyle setting.
- Prime Location: Centrality and proximity to DIFC, Downtown, and metro continue drawing both end users and investors. hausandhaus.com+1hausandhaus.com+1
- Investor Confidence: Dubai’s broader Q1 performance—strong off-plan demand, rental growth, and rising end-user sentiment—fuels momentum in Business Bay. hausandhaus.com+12hausandhaus.com+12hausandhaus.com+12
Outlook: What to Expect
- Q3 2025: Continued price appreciation of 2–3 %, with robust rental market and sustained sales of waterfront inventory.
- Long Term: Full delivery and occupancy of upcoming launches will balance the market into 2026, keeping demand strong while controlling hyper-appreciation.
Community Insights
- Peninsula (Phases 5 & 6): Quick sales on both phases; buyers keen on immediate waterfront access & DLD fee waivers. podcasts.apple.com
- Vela Viento (Dorchester): Ultra-luxury development; 2–4 beds and penthouses attracting high-net-worth buyers, solidifying Business Bay’s premium segment. hausandhaus.com+10hausandhaus.com+10hausandhaus.com+10
Conclusion
Business Bay remains a resilient, growth-oriented market in Q2 2025. Price and rental growth continue at a healthy pace, supported by new waterfront supply and investment-friendly dynamics. For investors, it remains a top-tier option; for end-users, a compelling lifestyle locale. As more waterfront projects come online, expect Business Bay to shift from “growth” to “mature and stable” over the next 12–18 months.