Dubai Real Estate Market Sets New Sales Record at AED 66.8 Billion in May

The Dubai real estate sector continues its upward trajectory, achieving a historic monthly sales milestone of AED 66.8 billion in May 2025, marking a 49.9% increase in value compared to the same month last year.

According to a market update by fäm Properties, the month also registered 18,693 transactions, making it the second-highest on record in terms of volume. This reflects the resilience, maturity, and continued demand in the emirate’s real estate landscape.

Firas Al Msaddi, CEO of fäm Properties, noted that data from DXBinteract points to a stable and evolving market with no signs of residential oversupply. On the contrary, the commercial property sector is facing undersupply, especially in high-demand business districts.

Market Maturity, Not a Correction

Addressing recent forecasts from Fitch Ratings suggesting a potential 15% correction in residential property prices, Al Msaddi clarified that a slowdown in growth should not be mistaken for market weakness. He highlighted that over the next five years, 363,000 residential units are projected for delivery, but more than 270,000 of these remain at early construction stages, with only 0–20% progress.

Currently, only 12,000 units are nearing completion (80–99%), and project deliveries in 2024 are down 23% from 2023, underlining that fears of oversupply are unfounded.

“There may be temporary price adjustments in specific communities such as Jumeirah Village Circle, which is expected to add around 20,000 new units over the next four to five years,” said Al Msaddi. “However, these fluctuations are not indicative of broader market trends. Dubai’s demand base remains robust, and supply absorption is expected to keep pace.”

Undersupply in Commercial Property Segment

In contrast to the residential market, Dubai’s office space segment is facing a supply crunch. “High-quality commercial properties remain in short supply, especially in premium zones,” said Al Msaddi. “With continued strong demand and limited new stock, no price correction is anticipated, and values are expected to rise further.”

Growth Over the Years

Dubai’s real estate market has seen exponential growth over the past five years:

• May 2020: AED 2.3 billion (1,400 transactions)

• May 2021: AED 11.1 billion (4,400 transactions)

• May 2022: AED 18.3 billion (6,600 transactions)

• May 2023: AED 33.6 billion (11,600 transactions)

• May 2024: AED 46.4 billion (17,600 transactions)

• May 2025: AED 66.8 billion (18,693 transactions)

Top Luxury Sales

• The most expensive villa sold in May was located at Palm Jumeirah, priced at AED 300 million.

• The most expensive apartment sale occurred in Jumeirah Residences Asora Bay, fetching AED 164 million.

Wealth Migration Fuels Market Strength

The UAE’s property market growth is also supported by global high-net-worth migration trends. DXBinteract reports that Dubai gained 212% more millionaires over the past decade, while London lost 45% in the same timeframe.

“Dubai has emerged not just as a lifestyle hub but as a secure and lucrative investment destination,” said Al Msaddi. “The city is attracting global capital, offering investors both value appreciation and wealth protection.”

Transaction Insights by Price Range (May 2025)

• Above AED 5 million: 14%

• AED 1–2 million: 30%

• Below AED 1 million: 26%

• AED 2–3 million: 18%

• AED 3–5 million: 12%

Additionally, first sales from developers accounted for 66% of total transactions (67% of value), clearly outpacing resales.