Dubai Real Estate Market Sales performance-May 2025

Dubai’s real estate market maintained its record-setting trajectory in May 2025, delivering unprecedented sales figures that underscore the emirate’s status as a global investment magnet.

With sustained demand across luxury and mid-market segments, May’s performance solidified Dubai’s position as the Middle East’s most dynamic property hub.

Market Overview: Historic Milestones

May 2025 achieved landmark results across key metrics:

• Total Sales Volume: 18,909 transactions

• Total Sales Value: 67.55 Billion AED

  
  

This represents an 8.13% year-over-year (YoY) volume increase and a 47.59% YoY surge in value, marking the highest May performance in Dubai’s history. The value growth significantly outpaced volume expansion, reflecting substantial price appreciation across all asset classes.

Segment Performance Breakdown

Off-Plan Properties - Dominated again market activity

Off-plan developments drove 62.25% of total volume (11,771 transactions) and 56.05% of value (AED 37.86 billion)

Key trends include:

YoY Value Growth: +49.47% vs May 2024

Prime Locations: Dubai South (28% share), Palm Jumeirah (19%), Dubai Hills Estate (15%)

The off-plan segment’s success reflects buyer confidence in Dubai’s long-term growth narrative, particularly in mixed-use communities offering integrated amenities such as Dubai Hills Estates.

Ready Properties - Premiumization

Ready transactions accounted for 34.05% of volume (6,438 deals) but delivered 26.84% of total value (AED 18.13 billion):

• YoY Value Growth: +51.96%

• Luxury Focus: Beachfront villas traded at 45-50% premiums versus inland properties

• Record Sale: AED 410 million mansion on Palm Jumeirah’s Frond N

Secondary market activity surged as investors capitalized on immediate occupancy opportunities and rising rental yields.

Check out our research article on key considerations for buying off-plan vs ready properties in Dubai.

Popular Areas: Emerging and Established Hotspots

Emerging Frontiers

• Dubai South: 310% YoY transaction growth, driven by proximity to Al Maktoum Airport’s expansion

• Al Jaddaf Waterfront: 47 luxury sales >AED 50 million, averaging AED 3,211/sq.ft

• Jumeirah Village Circle (JVC): Mid-market hub with 1,622 transactions at AED 1,488/sq.ft

Established Prime Areas

• Palm Jumeirah: 39 ultra-luxury sales (>AED 100 million)

• Downtown Dubai: Commercial-residential hybrid assets saw 22% MoM price growth

• Emirates Hills: Villa prices reached AED 4,122/sq.ft, setting new community benchmarks

The percentage share of overall transactions volume by asset class* in May:

Apartments 75 %

Villas and Townhouses 19 %

Commercial properties 2 %

Land plots 4 %

Market Trends and Insights

Dubai Real Estate Sector Surpasses AED 143 Billion in Q1 2025

Dubai is steadily moving towards Net-Zero by 2050

Dubai provides a mix of advantages for foreign investors aiming to enter the property market, including:

• Freehold property ownership and Zero property tax

• Zero personal income tax or capital gains tax, or withholding tax

• lowest corporate income tax rate of 9%

• 100% foreign business ownership

• 100% repatriation of capital investment and total profit earned

• 10-year investor Golden Visa

• Investor-friendly policies providing foreign investment protection

• One of the world’s top tourist centers

Latest news and initiatives

Dubai Residential REIT Debuts on DFM as the GCC’s Largest and First Listed Pure-play Residential Leasing Focused REIT. IPO Price for Dubai Residential REIT was set at AED 1.10, Raising AED 2.1 Billion

Nasdaq Dubai Welcomes USD 500 Million Green Sukuk Listing by OMNIYAT property developer. With this listing, the total value of ESG-linked debt instruments on Nasdaq Dubai has reached USD 29.6 billion, representing a growing share of the exchange’s debt market. Green instruments account for over 60% of ESG listings, highlighting strong regional momentum toward sustainable capital markets.

Conclusion

Dubai’s May 2025 performance (AED 67.55 billion sales) cements its evolution from regional hub to global wealth preservation destination. With supply shortages creating natural value appreciation buffers and regulatory innovation enhancing market efficiency, the emirate offers unparalleled opportunities for strategic investors. As Dubai advances toward its 2040 Urban Master Plan, stakeholders leveraging data-driven insights and sustainability-aligned assets will dominate the next growth phase.

Source: Dubai Land Department; DXB Interact, Dubai Media Office