Dubai Real Estate Soars: Record-Breaking Trends in May 2025
In May 2025, the Dubai real estate market showcased unprecedented growth, marking a significant 44 percent year-over-year increase in value and a 6 percent rise in transaction volume. This remarkable performance reflects not only growing investor confidence but also a sustained interest in various property types, both ready and off-plan.
Primary Market Takes the Lead
The surge in primary ready transactions has been particularly striking. In May 2025, these transactions quadrupled in value year-over-year, reaching AED 17.9 billion (approximately $4.88 billion) across 2,400 deals. This represents a staggering 314 percent increase in value and a 145 percent rise in volume. Clearly, buyers are increasingly drawn to new developments, indicating a strong belief in the future of Dubai’s skyline.
Historic Secondary Market Performance
Meanwhile, the secondary market also achieved historic highs. Transactions totaled AED 24 billion ($6.55 billion) across 6,078 transactions, marking a 21 percent rise in value and an 8 percent rise in volume compared to May 2024. This resilience in the secondary market highlights the ongoing demand for existing properties, suggesting that investors are keen to secure established real estate in this ever-evolving city.
Key Market Highlights
- Primary Market Dominance: The combination of off-plan and ready sales rose by 65 percent, totaling AED 37 billion ($10.1 billion).
- Secondary Market Resilience: Transactions surged to AED 29 billion ($7.9 billion) across 8,471 deals, an increase of 23 percent in value and 15 percent in volume.
- Business Bay’s Investment Surge: This area led premium investments, constituting 5 percent of total value while accounting for just 3 percent of all transactions.
- High Activity in Al Barsha: This neighborhood saw increased transaction volume, representing 5 percent of the deals.
- Major Institutional Investment: A noteworthy AED 1.5 billion ($409 million) land deal in Palm Deira underscores institutional confidence in long-term growth.
Consumer Trends and Preferences
- Apartments Reign Supreme: Apartments emerged as the most sought-after option, garnering 78 percent of rental searches and 60 percent of buyer interest.
- Studios in Demand: While studios attracted 21 percent of rental searches, they drew only 15 percent of purchase interest, indicating a preference for more spacious living.
- One-Bedroom Units Lead: One-bedroom apartments topped the charts, making up 38 percent of rental searches and 35 percent of buyer interest, suggesting a trend toward larger, more livable spaces.
Expert Insights on the Market
Cherif Sleiman, Chief Revenue Officer at Property Finder, emphasized the significant shift in transaction values, stating, “Just when we thought April was Dubai’s most significant month in terms of transaction value at AED 62.1 billion, May eclipsed this with AED 66.8 billion. This underscores the sustainability of the trends driving current growth.”
Sleiman also remarked on Dubai’s leadership in real estate innovation, highlighted by the launch of the region’s first licensed tokenized property investment platform. Such innovations are expected to keep the market vibrant and appealing to a broad spectrum of investors.
“With a remarkable population growth this year, welcoming nearly 1,000 new residents each day—double last year’s daily visitor arrivals—the demand for housing is poised to reach peak levels,” Sleiman observed. He expressed optimism about positive momentum in the real estate market, fueled by digital transformation, rising international investor interest, and increased demand for premium living spaces.
Industry leaders participating in recent discussions at Property Finder’s roundtable demonstrated strong confidence in ongoing transaction activity throughout 2025. With unprecedented international investor interest, combined with robust off-plan performance and dynamic luxury resale activity, the outlook remains bright for Dubai’s real estate sector, illustrating its enduring appeal amid global uncertainties.
This article is designed to provide a comprehensive overview of the Dubai real estate market’s thriving state in May 2025. Each section is structured clearly to ensure it remains engaging and informative for the reader.
