Dubai Real Estate Hits $14.8B in May 2025 as Off-Plan Sales Dominate
Dubai’s residential property market hit AED 54 billion ($14.8 billion) in transactions during May 2025.
Arabian Business confirms this is an 11% monthly rise and nearly 40% higher than May 2024.
Off-plan sales made up 58% of all transactions. Prices rose 13% compared to April, and 20% year-on-year.
Property Monitor attributes this to strong developer launches in Dubai South, Business Bay, and JVC.
New buyers prefer flexible payment plans. Investors are targeting off-plan units for future resale or rental income. Villa prices averaged AED 6.68 million, up 92% since May 2022. Arabian Business lists Dubai Hills Estate and Palm Jumeirah as top-performing villa communities.
Townhouses in areas like Arabian Ranches and DAMAC Hills also saw double-digit price growth. Supply remains tight in these segments.
Analysts expect 5–7% further price growth in Q2. Rental rates may rise up to 10% in prime zones.
MetaHomes Blog reports ongoing demand from international investors and end-users.
Short-term holiday rentals and branded residences continue to attract premium tenants and yield returns above market average.
Fitch Ratings warns of a potential 15% price correction by late 2025. The risk comes from oversupply. Over 210,000 new homes are expected between 2025 and 2027. This could push down resale values in overbuilt zones.
Despite risks, global demand for Dubai property stays high. Buyers from India, Russia, and Europe continue to invest. Many seek lifestyle benefits and UAE residency through property. Khaleej Times explains how buyers can secure a 10-year Golden Visa through real estate.
| Metric | May 2025 | April 2025 | May 2024 | Trend |
|---|---|---|---|---|
| Transaction Value (AED) | 54 billion | 48.6 billion | 38.7 billion | ↑ 11% MoM, ↑ 40% YoY |
| Total Units Sold | ~12,500 | ~11,300 | ~9,100 | ↑ Off-plan leads with 58% |
| Avg. Off-Plan Price (sq. ft.) | AED 1,550 | AED 1,370 | AED 1,290 | ↑ 13% MoM, ↑ 20% YoY |
| Avg. Villa Price | AED 6.68M | AED 6.52M | AED 3.48M | ↑ 92% since 2022 |
| Rental Rate Forecast | +8% to +10% | +6% YTD | +9% 2024 avg | Rising in key zones |
| Q2 2025 Price Forecast | +5% to +7% | — | — | Stable expected growth |
| Supply Forecast (2025–2027) | 210,000 units | 190,000 units | 145,000 units | Oversupply risk growing |
Dubai’s real estate market remains strong in 2025. But developers and investors must monitor supply dynamics closely.
