Dubai City Walk Apartment Prices Hit Record High as Rental Yields Reach 6.5%
Dubai's City Walk apartment market continued to strengthen in 2026, with residential prices reaching record levels while gross rental yields climbed to as high as 6.5%, according to a new market report by Driven Forbes Global Properties.
The report, which analyses sales activity through 30 May 2026 and rental performance through 22 June, shows the centrally located Meraas-developed community benefiting from sustained demand, rising capital values and expanding off-plan development, reinforcing its position as one of Dubai's most sought-after residential districts.
Sales value rises despite fewer transactions
City Walk recorded 144 residential transactions worth USD 190.3 million (AED 698.37 million) during the first five months of 2026.
While transaction volumes declined 7.7 per cent year-on-year, total sales value increased 17.4 per cent, reflecting continued price appreciation across the district.
Average selling prices reached USD 754 (AED 2,769.5) per square foot, up 5.1 per cent from a year earlier, with Q1 2026 setting a new quarterly record of USD 786 (AED 2,883.66) per square foot.
Q2 marks strongest capital deployment since 2024
The report found that Q2 2026 generated USD 113.6 million (AED 416.87 million) in sales value, making it City Walk's strongest quarter for capital deployment since the first quarter of 2024 and signalling renewed investment momentum following the softer 2024-2025 market cycle.
Crestlane expansion adds 360 homes
One of the report's key developments was the launch of City Walk Crestlane Phases 4 and 5, adding 360 new residences across four mid-rise buildings.
The wider Crestlane masterplan will ultimately comprise:
• 22 residential buildings
• 2,625 apartments
• 365,676 square metres of built-up area
• Scheduled completion in April 2029
Entry prices for one-bedroom apartments start from USD 714,000 (AED 2.62 million).
The report also notes that nearly USD 242.5 million (AED 890 million) in construction contracts has been awarded across adjacent City Walk developments over the past 12 months.
Four distinct residential precincts
According to the report, City Walk's residential market is divided into four primary precincts.
Central Park represents the district's newest residential core, comprising projects including Castleton, Laurel, Erin, Celadon, Thyme and Fern, all centred around a large landscaped park.
The Original City Walk Residences form the community's first residential phase, delivered between 2016 and 2017, consisting of more than 16 mid-rise buildings that continue to anchor the district's secondary market.
The Northline Corridor adds a further 304 apartments across three buildings scheduled for handover in the third quarter of 2027.
Meanwhile, Crestlane Waterside represents City Walk's largest future expansion, delivering 2,625 homes across 22 buildings, designed around landscaped waterfront features and expected to complete in 2029.
Off-plan apartments command double-digit premium
The report highlights a widening pricing gap between off-plan and completed properties.
Off-plan apartments traded at an average of USD 816 (AED 2,995) per square foot, compared with USD 738 (AED 2,708) for ready units, representing a 10.6 per cent premium.
Premiums varied by apartment type:
• One-bedroom apartments: 19.3%
• Two-bedroom apartments: 4.3%
• Three-bedroom apartments: 22.1%
No off-plan transactions were recorded for studios or four-bedroom apartments during the review period, with both segments trading exclusively in the ready market.
Ready homes dominate market activity
Completed properties accounted for 113 transactions, compared with 31 off-plan sales.
Apartments represented 97.2 per cent of all residential transactions, while serviced and hotel-operated residences made up the remaining 2.8 per cent.
Central Park commands highest prices
Among individual developments, Castleton at Central Park recorded the district's highest average selling price at USD 840 (AED 3,084) per square foot.
It was followed by:
• Laurel – USD 815 (AED 2,991)
• Erin – USD 811 (AED 2,975)
• Celadon 3 – USD 803 (AED 2,948)
At the lower end of the pricing spectrum, Rove City Walk averaged USD 675 (AED 2,478) per square foot.
Prices rise nearly 27% since 2021
City Walk's average apartment price has increased 26.9 per cent since 2021, reaching its highest level on record during the first five months of 2026.
Average annual prices per square foot rose from USD 595 (AED 2,182) in 2021 to USD 754 (AED 2,770) in 2026 year-to-date.
Rental market remains resilient
The district registered 398 residential lease contracts through 22 June 2026, comprising:
• 182 new leases
• 216 renewals
Renewals represented 54 per cent of all leasing activity, underlining City Walk's established residential community and relatively low tenant turnover.
New leases achieved average rents of USD 42.8 (AED 157.2) per square foot, compared with USD 34.6 (AED 127) for renewals, representing a 23.8 per cent uplift for newly leased properties.
Rental yields reach 6.5%
The report found that apartments within the Central Park precinct generate gross rental yields of up to 6.5 per cent.
Average gross yields by apartment type were:
• One-bedroom: 6.0%
• Two-bedroom: 5.6%
• Three-bedroom: 5.4%
Average annual rents stood at:
• USD 42,300 (AED 155,410) for one-bedroom apartments
• USD 67,500 (AED 247,613) for two-bedroom apartments
• USD 93,900 (AED 344,690) for three-bedroom apartments
• USD 151,800 (AED 557,072) for four-bedroom apartments, rising to USD 192,100 (AED 704,969) for newly leased units.
Apartment occupancy remained strong at 85.3 per cent during 2025, while average service charges stood at USD 6.0 (AED 21.98) per square foot.
Commercial market remains lease-led
The report notes that no secondary commercial or office sales were recorded in City Walk between 2016 and 2026.
Retail units continue to operate primarily as leased assets, with average shop rents reaching USD 61.9 (AED 227) per square foot, reinforcing the district's predominantly leasing-based commercial market.
Source: Driven Forbes Global Properties, based on Reidin transaction records, Dubai Land Department data and developer disclosures.
Related Articles
