Business Bay Q2 2025 Market Report

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

MetricQ22025 Change vs Q12025Q22025 Change vs Q22024
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

  • Q32025: 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


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.

Subscribe To Download Our Brochure