The Dubai real estate market continues its remarkable streak, recording a historic AED 66.8 billion in total transactions for May 2025—a figure that cements the city’s position as one of the world’s most active and resilient property destinations. According to official data released this week, more than 18,700 property deals were closed in May, making it not only the busiest month in the city’s history, but also a clear indicator of ongoing confidence from both end-users and investors.

Record-Breaking Sales Across All Segments

May’s results surpassed even the most optimistic analyst forecasts, with transaction volumes up 16% year-on-year and a surge seen across nearly all property segments, including apartments, villas, commercial units, and land. Luxury and branded residences in communities such as Palm Jumeirah, Downtown Dubai, and Dubai Marina drove significant volumes, with off-plan projects accounting for a dominant share of new contracts.

According to market analysts at Property Finder, the robust numbers are supported by several converging factors: strong population growth, government-backed economic initiatives, and a steady inflow of high-net-worth individuals seeking Dubai’s unique blend of business opportunities and lifestyle.

Off-Plan Dominates as Developers Launch Flagship Projects

A standout feature of May’s activity was the dominance of the off-plan market, which represented nearly 70% of all sales by value. Major developers, including Emaar, Nakheel, and Danube Properties, reported record pre-sales on flagship launches in Dubai Creek Harbour, Jumeirah Village Circle, and the revived Palm Jebel Ali project.

“This surge in off-plan transactions is a clear reflection of both buyer optimism and developer confidence in Dubai’s future,” said Fatima Al Shamsi, Research Director at Bayut. “Flexible payment plans, post-handover incentives, and attractive locations are driving first-time buyers and seasoned investors alike.”

Apartments, Villas, and the Rise of Branded Living

Apartments accounted for nearly 55% of May’s deals, driven by demand in both affordable and luxury segments. Meanwhile, villa communities in areas such as Arabian Ranches and Dubai Hills Estate continued to see strong uptake, fueled by ongoing interest from families and long-term residents.

Branded residences—offering hotel-style amenities and managed services—saw particularly high demand among international buyers, reflecting a shift toward lock-and-leave living and turnkey investment properties.

Sustained Growth Backed by Economic Fundamentals

Analysts emphasize that the current market performance is underpinned by robust fundamentals rather than speculative activity. Dubai’s steady population growth, pro-business regulatory environment, and global connectivity are cited as key drivers. Inflows from Europe, China, and South Asia continue to bolster demand, alongside the city’s reputation as a safe haven for capital during periods of international uncertainty.

“Dubai has firmly established itself as the region’s most dynamic real estate market, and these record transaction numbers are proof that both residents and investors see long-term value here,” said Hussain Ali, CEO of Landmark Advisory.

Looking Ahead: What’s Next for Dubai Real Estate?

As the market heads into the second half of 2025, experts predict sustained momentum, supported by upcoming project launches, continued demand for high-quality homes, and further enhancements to investor and resident visa programs.

“With this kind of transaction volume, Dubai is setting new benchmarks not only for the UAE, but for global property markets as a whole,” said Al Shamsi. “The city’s ability to adapt, innovate, and deliver value to a diverse international audience remains unmatched.”

Stay with us for further updates and in-depth market coverage as Dubai’s real estate sector continues to break records and shape the future of property investment in the region.