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Dubai’s real estate market is experiencing an unprecedented surge, with sales transactions reaching a staggering AED66.8 billion ($18.19 billion) last month across 18,700 deals. According to Property Finder’s May 2025 report, this performance signifies a remarkable 44 percent year-over-year increase in transaction value and a solid 6 percent rise in transaction volume, highlighting strong market confidence and an insatiable appetite for Dubai properties.
“Just when we thought April was Dubai’s most significant month in terms of transaction value at AED62.1 billion, May eclipsed this with AED66.8 billion. This underscores the sustainability of the trends driving current growth,” stated Cherif Sleiman, chief revenue officer at Property Finder. This statement captures the essence of a market thriving on robust investments and promising future growth.
Primary Ready Sales Surge 314 Percent
The dynamic performance of Dubai’s real estate sector is largely driven by significant growth in ready transactions for both primary and secondary markets. Primary ready sales soared to AED17.9 billion, representing an extraordinary 314 percent increase compared to May 2024. This translates to approximately 2,400 transactions and a 145 percent growth in the number of deals.
Meanwhile, secondary ready sales reached an impressive AED24 billion, with 6,078 transactions completing the cycle. This reflects an 8 percent increase in volume and a 21 percent rise in transaction value year-over-year, signifying sustained demand in the resale market. “Dubai continues to lead real estate innovation by example, as evidenced by the recent launch of the region’s first licensed tokenized property investment platform by the Dubai Land Department,” Sleiman notes. The market’s growth has been influenced by the city’s growing population, welcoming nearly 1,000 new residents each day, which is double the daily visitor arrivals from last year.
The primary market remains a stronghold, with primary ready and off-plan sales surging by 65 percent year-over-year to reach AED37 billion. On the other hand, the secondary sales market set a record with AED29 billion in transaction value and 8,471 transactions, marking year-over-year increases of 23 percent and 15 percent, respectively. “Against this backdrop, the real estate market is enjoying positive momentum, fuelled by digital transformation, international investor appetite, and a surge in demand for premium living,” Sleiman remarked.
Strategic Investment Hotspots Emerge
Amidst this vibrant performance, key investment areas within Dubai’s real estate landscape have emerged. Notably, Business Bay has become a premium investment magnet, capturing 5 percent of the total primary transaction value despite constituting merely 3 percent of the volume. This indicates a pattern of high-value, sophisticated investment activity in the area.
On the other hand, Al Barsha showcased its broad market appeal by accounting for 2 percent of the total transaction value while commanding an impressive 5 percent of transaction volume, indicating strong demand across various price points. A notable AED1.5 billion land transaction in Palm Deira emphasizes institutional confidence in Dubai’s long-term growth, underpinned by strong resale activities in key communities such as Business Bay, Al Barsha, and Wadi Al Safa 3.
Real estate leaders involved in Property Finder’s recent discussions exhibit optimism about picking up transaction activity throughout 2025, driven by unprecedented interest from international investors alongside strong off-plan performance and vibrant luxury resale activity. These trends speak volumes of the city’s enduring appeal and resilience, even amid global economic uncertainties. As Dubai continues to evolve in the real estate sphere, Property Finder remains committed to empowering buyers and investors with critical insights to navigate confidently.
Apartments Dominate Demand
Consumer preferences within the market have shown stability over the past year, with apartments dominating a significant portion of home seekers’ interests. In fact, apartments represent 78 percent of rental searches and 60 percent of buyer interest. Among these, studios accounted for 21 percent of rental searches and 15 percent of purchase interest, while one-bedroom units commanded 35 percent of purchase searches along with 38 percent of rental searches.
This discrepancy suggests an intriguing narrative: while studios are appealing to budget-conscious renters, buyers seem to prioritize larger units for perceived long-term value, livability, or investment potential. This trend is essential for understanding the evolving dynamics of Dubai’s real estate landscape and could inform future investment decisions for both local and international stakeholders.
