Driven by price stability, rising occupancy, and investor confidence across both villas and flats, District 1, tucked away within Mohammed Bin Rashid Al Maktoum City, has quickly evolved from a tiny luxury enclave into one of Dubai’s most significant residential marketplaces. Once thought of as an ultra-exclusive idea, it has evolved into a benchmark community that influences consumer demand and market dynamics in the city’s upscale sector.
“District 1 reflects the evolution of Dubai’s urban landscape where visionary planning meets sustained growth,” said Abdullah Alajaji, CEO & Founder of Driven Properties. “Its growth story is not just about rising values, but about shaping a new benchmark for modern luxury living in the heart of the city.”
A strategically located community commanding rising attention
District 1’s demand profile has increased due to its proximity to Downtown Dubai, DIFC, Business Bay, and Dubai International Airport. Rich locals and investors looking for both peace and closeness to the city center are drawn to it because of its famous 7-kilometer crystal lagoon, large parks, and high-end villas and apartments.
District 1 is becoming more than just a high-end location; it is now a major force behind the activities of the luxury market.
Price appreciation outpaces the wider prime market
Despite indications of normalization in Dubai’s wider market, District 1 has seen exceptional price stability and appreciation.
While off-plan properties increased by 31% during the same period, ready property prices increased by 38%, from Dh1,686 per square foot in 2021 to Dh2,336 in H1 2025.
This consistent upward momentum underscores the community’s limited supply and strong end‑user appeal. The report highlights that “pricing remains firm, highlighting District 1’s status as a prime, end‑user driven community with limited supply and sustained value retention.”
Transaction trends show a maturing, end‑user‑driven market
Ready transactions increased dramatically following a period of strong off-plan activity in 2022–2023, indicating increased handovers and a move toward end-user absorption. Before leveling off at 753 transactions in 2024 and 178 in H1 2025, the total number of residential transactions increased from 466 in 2021 to a peak of 1,156 in 2022.
Prior to a decline that reflected a more mature and selective market, one-bedroom flats dominated investor activity, reaching a peak of 507 off-plan transactions in 2022. Prices for three-bedroom apartments increased by 36% between 2021 and H1 2025, reaching Dh2,434/sqft. Bigger units also demonstrated consistent uptake.
Four and five-bedroom properties continue to be in high demand in the villa market. There were 267 purchases for five-bedroom villas in 2023 alone, demonstrating the continued demand for mid-luxury family residences. Between 2021 and H1 2025, prices for 4-bedroom villas increased by 73% to Dh2,123/sqft, while 6-bedroom apartments reached the highest price in the category at Dh3,015/sqft.
Occupancy surge signals market maturity
The dramatic 44-point increase in occupancy rates from 32.6% in 2023 to 76.7% in H1 2025 is one of the best signs of District 1’s change.Twenty percent20Report.pdf This shows actual, on-the-ground absorption and residence increase in addition to sales momentum.
This change was reflected in rental markets. Before returning to normal in 2025, the number of new rental contracts increased dramatically from 80 in 2021 to 902 in 2024. A steady resident base and long-term renter retention are indicated by the rise in renewals. The majority of unit types saw increases in rental costs; from 2021 and 2024, 4-bedroom rentals increased by 56%.
Limited supply adds stability and long‑term value
With 78 per cent of stock already delivered and only 22 per cent currently under construction, District 1 maintains supply discipline — a rarity in rapidly expanding master communities. The report notes that this “controlled supply growth positions the community well to absorb future inventory without downward price pressure.”
Liquidity is supported by a developing secondary market.
While premium launches like District One Phase 3 Villas B maintain 100% primary sales at Dh2,709/sqft, developments like District One West Phase 2 exhibit 80% resale activity, indicating concurrent strength in both early-stage and mature phases of the neighborhood.
Apartment complexes like Naya at District One, on the other hand, exhibit a developing secondary market with 33% resale transactions, indicating an increase in investor exits and liquid resale channels.
A vital component of the future of luxury real estate in Dubai
District 1 has solidified its position as a key component of Dubai’s luxury real estate ecosystem thanks to steady price growth, increasing occupancy, robust mid-luxury demand, and growing secondary market liquidity. Going into the next stage of Dubai’s real estate cycle, it is positioned as one of the city’s most influential—and resilient—communities thanks to its combination of urban accessibility, natural landscapes, and upscale houses.
