Dubai’s property market has reached a new high. In May 2025, sales hit AED66.8 billion across more than 18,700 deals, according to Property Finder. This is the highest monthly transaction value ever recorded in the emirate.
A Record-Breaking Month
Transaction value jumped 44% compared to May 2024. Volume also grew 6%, showing that demand remains strong. Both off-plan and ready property sales drove growth.
Primary ready sales reached AED17.9 billion from 2,400 transactions. That’s a 314% rise in value and 145% in volume over last year. Secondary ready sales also set a record at AED24 billion across 6,078 transactions, reflecting steady end-user and investor demand.
The Role of Off-Plan Properties
Off-plan deals continue to power growth. In May 2025, off-plan sales crossed AED37 billion, up 65% year over year. Developers have launched a range of projects targeting both luxury buyers and mid-market segments.
Communities like Business Bay, Wadi Al Safa 3, and Al Barsha recorded strong activity. A standout deal was a land transaction in Palm Deira worth AED1.5 billion, a signal of confidence from institutional investors.
Apartment Demand Remains High
Consumer data shows that apartments remain the most searched property type. In May, 78% of rental searches and 60% of buyer interest were for apartments. One-bedroom units led both rental and purchase searches, reflecting lifestyle and investment preferences.
Studios attracted more renters than buyers, suggesting they appeal mainly to budget-conscious tenants. Buyers lean toward larger layouts for long-term use or rental yields.
Why the Market is Booming
Several factors support this surge:
- Population growth, with almost 1,000 new residents arriving daily.
- International interest, as Dubai stays a top choice for global investors.
- New initiatives, like tokenized property investment platforms by Dubai Land Department.
- Stable regulations, which increase buyer and seller confidence.
These trends highlight Dubai’s ability to sustain growth while offering steady returns.
Hotspots for Investors
Business Bay drew high-value buyers, capturing 5% of total transaction value with only 3% of volume. Al Barsha showed wide appeal, representing 5% of deals across different price points. Such diversity in activity suggests there are many UAE investment opportunities for both short-term gains and long-term holdings.
Luxury properties also performed well, supported by demand from international investors seeking secure assets in a strong market.
Looking Ahead
Property Finder’s analysts expect momentum to continue through the year. Demand from new residents, combined with steady foreign investment, is likely to push activity further.
For buyers and investors, the numbers prove that Dubai’s market is not slowing down. The combination of luxury demand, affordable housing interest, and large-scale land deals points to lasting growth.
Conclusion
May 2025 was a milestone month for Dubai’s real estate sector. With AED66.8 billion in transactions, it set a new benchmark and reinforced the city’s global standing. For investors, the market continues to present unmatched UAE investment opportunities, from prime urban apartments to landmark land deals.
Ready to secure your place in Dubai’s booming real estate market? Connect with AR Associates today for expert guidance on the best investment opportunities tailored to your goals.
