District 1 Emerges as a Key Driver of Dubai’s Luxury Real Estate Market
Dubai — District 1, located within Mohammed Bin Rashid Al Maktoum City, has rapidly become a cornerstone of the city’s prime residential market, attracting strong investor and end-user interest. Its central location, just minutes from Downtown Dubai, DIFC, Business Bay, and Dubai International Airport, has contributed to its high demand.
With 78% of properties already delivered and only 22% under construction, District 1 maintains strict supply discipline — a rare feature in Dubai’s fast-growing master communities. This controlled growth has underpinned both price stability and long-term value for buyers.
According to Abdullah Alajaji, CEO & Founder of Driven Properties, “District 1 reflects the evolution of Dubai’s urban landscape, where visionary planning meets sustained growth. Its growth story is not just about rising values, but about setting a benchmark for modern luxury living in the heart of the city.”
Strong Price Growth and Market Maturity
Ready property prices in District 1 increased 38% from AED 1,686/sqft in 2021 to AED 2,336/sqft in H1 2025, while off-plan properties rose 31% over the same period. Transaction trends indicate a shift toward end-user demand, with larger apartments and villas seeing steady absorption. Notably, 4-bedroom villa prices surged 73% to AED 2,123/sqft, and 6-bedroom units reached AED 3,015/sqft.
Rising Occupancy and Rental Demand
Occupancy rates have jumped from 32.6% in 2023 to 76.7% in H1 2025, reflecting strong on-ground residency. The rental market mirrored this growth, with new contracts increasing from 80 in 2021 to 902 in 2024, and rental prices rising across most unit types — 4-bedroom units alone saw rents climb 56%.
Balanced Supply and Liquidity
District 1’s disciplined delivery strategy ensures long-term stability and value retention. Secondary market activity is growing, with resale transactions in phases such as District One West Phase 2 reaching 80% and new premium launches maintaining strong primary sales.
With a blend of urban accessibility, natural landscapes, and premium residences, District 1 continues to set the benchmark for luxury living in Dubai and remains a central pillar of the city’s real estate ecosystem.
