This insane rise recorded a year-to-year growth of 44% in terms of value and 6% in terms of volume of transactions, making it one of the most active property markets in the world.
Unprecedented Growth in Ready Transactions
This month was for the record set by the country for such a period, with primary ready transactions rising surprisingly to a 4X-y-o-y value of AED 17.9 billion ($4.88 billion) across 2,400 deals. To put that in perspective, this means there has been a 314% rise in transaction values and a 145% rise in the number of transactions. Secondary ready transactions, on the other hand, also saw peak figures, reaching AED 24 billion ($6.55 billion) across 6,078 transactions, representing up 21% in value and 8% in volume from May 2024.
Primary and Secondary Market Highlights
In the primary market, including both off-plan and ready property, prices improved 65% to reach AED 37 billion ($10.1 billion) due to excellent investor appetite for new developments and complete properties. The secondary market remained strong, with transactions up to AED 29 billion ($7.9 billion) across 8,471 deals, marking a 23% increase in value and a 15% increase in volume year-on-year.
Key Areas and Premium Investments
The emergence of Business Bay as a hotspot for premium investments, making up 5% of market value from only 3% of transactions, hence the general reflection of the large-value price in the central business district.
Al Barsha stood apart for its volume of transactions, accounting for 5% of all deals, thus indicating a strong interest from investor, as well as end-user, parties in this matured residential area.
One of the landmark deals of the month was an expansive land deal of AED 1.5 billion ($409 million) in Palm Deira, reflecting institutional confidence in the long-term growth prospects and continued attractiveness of land investments on strategic fronts in Dubai.
Consumer Trends: Apartments Dominate Demand
Apartment remained No. 1 choice among investors and home buyers. Some 78% of rental searches were for apartments and 60% of buyer interest went into this exact property-type. Studios accounted for 21% rental searches and 15% purchase interest. This suggests that studios are in glam for renters while buyers favor bigger units for long-term value and livability. Demand for one-bedroom units took the lead, making up for 38% of rental searches and 35% of buyer searches.
In broad terms, the trend toward giant buildings epitomizes the move toward quality living spaces, wherein buyers and renters look for comfort and long-term investment potential. The preference for units by size is secured by the expanding population in Dubai and new residents wanting well-stabilized accommodations for families.
Expert Insights: Sustained Momentum and Innovation
Cherif Sleiman, Chief Revenue Officer at Property Finder, noted that just when April was considered Dubai’s biggest month in value terms at AED 62.1 billion, May took the lead at AED 66.8 billion. “This in itself is a testimony to the sustainability of the trends driving current growth,” he said.
Sleiman spoke of Dubai’s great leadership in real estate innovation, evidenced by the rather recent launch of the region’s first-ever licensed tokenized property investment platform by the Department of Lands, Dubai. This front-line kind of setup aims to make investors even more confident and make property transactions easier on the digital side.
Population Growth Fuels Demand
Almost 1,000 migration cases used to occur in Dubai every day a year ago; with the overwhelming population and so high demand, housing has become a high-priced asset and, in turn, a real growth factor in the real estate market. Further economic strength of the city, good lifestyle qualities, and a business-friendly environment have been attributed towards one of their methods of sustaining and attracting new residents.
International Investor Appetite and Digital Transformation
These developments also benefited international investors, who have engaged actively in the buying spree, again due to Dubai’s relatively stable political climate, adverse taxation, and world-class infrastructure. The city’s efforts towards digital transformation encompassed online property platforms, virtual tours, and blockchain transactions, with these improvements providing global investors easy access to the market, thus increasing the pace of development.
Confidence in Continued Growth
The leaders who attended the last Property Finder roundtable discussion had expressed a clear anticipation of transaction activity continuing its upward trend throughout the year 2025. This sense of optimism has been supported by an unprecedented foreign investor interest, strong off-plan activity, and an almost buzzing resale activity lifestyle. The general feeling holds that the real estate market in Dubai shall contend well in the face of broader global economic slowdown and remains highly attractive.
Market Resilience and Future Prospects
The Dubai realty market demonstrated the power of resilience against global economic winds and emerged possibly stronger. With strong basics population growth, investor confidence, and digital innovation will keep the city thriving for years to come.
The breaking of all records by a recent surge is not a lone instance but part of an ongoing upward trajectory. With Dubai continuing to innovate and attract new residents and investors, the real estate sector will remain the very pulse left for the enlargement of the city’s economy.
Conclusion
In May of 2025, the real estate scene in Dubai set new milestones, with sales closing in at AED 66.8 billion ($18.2 billion), and ready transactions increasing four times in a year’s time. The surge may be ascribed to a strong demand from the local and foreign investors, a swiftly rising population, along with modern-day digital solutions offering a completely new perspective on real estate-exchange.
Apartments continue to be the most sought-after property type, with larger units preferred for long-term investment and suitability. Business Bay and Palm Deira are well-recognized places for premium and large-scale investments, with Al Barsha leading in transaction quantity. Under continued momentum, with strong fundamental support and commitment to innovation, Dubai Real Estate is likely to be well placed to continue growing and resist global challenges.
