Dubai’s Property Market Surges Nearly 40% in May Transactions Boom

Editorial Team

Last updated 4-06-2025

3 min

Dubai’s property market reached AED 54.

4 billion in transactions in May, growing nearly 40%.

Off-plan sales dominated, over 60%, due to flexible payments and community-oriented developments.

Key neighbourhoods like Jumeirah Village Circle led with 1,800 transactions, averaging AED 1.

07 million.

Sub-4% fixed-rate mortgages and international interest enhance the market's appeal.

Population growth in Dubai fuels demand for rentals and home ownership, keeping the market stable.

Dubai’s property market had another impressive month this May, clocking up transactions worth AED 54.4 billion. This marked an impressive rise of nearly 40% from the same period last year, showing clearly that confidence remains high. A staggering 17,475 transactions were recorded, indicating a real depth of interest right across both the off-plan and completed property segments.

Off-plan sales continued to dominate transactions, accounting for just over 60% of the total. Buyers appear particularly taken with flexible payment schemes, thoughtfully designed masterplans, and the strong sense of community many developments offer. The resale market was also buoyant, capturing around 40%, especially in popular villa-focused neighbourhoods and luxury branded apartments. Prices remained pretty stable in family-friendly areas such as Dubai Hills Estate, Business Bay, and Jumeirah Village Circle, reflecting steady demand from everyday buyers rather than just wealthy investors.

Farooq Syed, CEO at Springfield Properties, summed it up nicely: "The data reflects a market moving in sync with structural demand. Developers aren't chasing volume; they're curating value. Buyer decisions are increasingly grounded in long-term asset performance, product integrity, and urban positioning. That alignment is what continues to set Dubai apart."

Interestingly, Jumeirah Village Circle emerged as a standout neighbourhood, leading the pack with an impressive 1,800 transactions averaging about AED 1.07 million – showing the lasting demand for affordable, family-friendly homes. Meanwhile, prime spots like Palm Jumeirah and Downtown Dubai remained favoured haunts among high-value buyers, with average sale prices topping AED 5 million thanks to their luxurious branded residences and waterfront locations.

The attractive mortgage offerings currently on the market also played a crucial role, with major banks continuing to offer sub-4% fixed-rate mortgages. And let’s not forget the international interest—it seems currency movements made property in the emirate even more tempting for those coming from Europe, India and Russia, helping to pump more overseas capital into Dubai’s market.

Population growth is steadily supporting demand, too. Dubai reached nearly 3.95 million residents in May. As you might imagine, that creates strong competition for rentals and home ownership alike. Premium villa areas like Palm Jumeirah and Jumeirah Islands saw average rentals surpass the AED 1.2 million mark. Branded residences in Business Bay and Dubai Creek Harbour also enjoyed strong rental returns and consistent occupancy rates.

Syed further noted, "We’re seeing strong absorption in thoughtfully released inventory, with developers pacing launches in line with population growth, financing cycles, and real end-user priorities."

Taken all together, the evidence points to Dubai maintaining its steady momentum as we move deeper into the second quarter. Developers remain realistic and structured in their approach—matching new product launches carefully to genuine market demand, population trends and available finance. For readers of Arageek and market watchers alike, it seems the real estate scene in Dubai is set to remain both interesting and stable for the foreseable future.

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