According to a market report released by fäm Properties, the Dubai real estate market achieved a new monthly sales record in May of AED66.8 billion ($18.2 billion), representing a 49.9% rise in value over the same month the previous year.
According to the data, last month was the second-best-selling month ever in terms of volume, with 18,693 transactions overall.
According to Firas Al Msaddi, CEO of Fäm Properties, the data from DXBinteract highlights the stability and strength of a market that is changing and now confronting an undersupply of office space rather than a general fear of oversupply in the residential sector.
Dubai real estate May 2025
In reaction to a recent Fitch Ratings estimate of a 15% drop in Dubai residential property prices, Al Msaddi stated: “While growth has slowed, this is not the same as a correction. A slowing in growth indicates market maturity, not weakness.
“Approximately 363,000 residential units are expected to be delivered in Dubai over the next five years. However, over 270,000 of those are still at early construction stages, with only 0–20 per cent progress as of today.”
He stated that just 12,000 units are nearing completion (80-99 percent advancement), refuting the impression of a market-wide surplus.
Additionally, finished project deliveries in 2024 are down 23% from 2023, indicating that the city is not facing an oversupply of ready units.
Al Msaadi said: “In specific segments, there may be temporary price adjustments. For example, Jumeirah Village Circle is expected to receive around 20,000 new units over the coming four to five years.
“This concentrated delivery volume may place short-term pressure on pricing in that area, but this is not reflective of the broader market. Even if a correction occurs in pockets of the residential sector, it’s temporary. Dubai’s demand base is strong, and absorption will catch up.”
Meanwhile, Dubai is facing an undersupply of office space.
Al Msaadi said: “Quality commercial space remains extremely limited, with strong demand and minimal new inventory, especially in prime business zones. As a result, no price correction is expected in the office segment, which continues to see firm value appreciation.”
Dubai property sales in May have soared in value over the last five years:
- 2020: AED2.3bn ($626m) from 1,400 transactions
- 2021: AED11.1bn ($3bn) from 4,400 transactions
- 2022: AED18.3bn ($5bn) from 6,600 transactions
- 2023: AED33.6bn ($9.1bn) from 11,600 transactions
- 2024: AED46.4bn ($12.6bn) from 17,600 transactions
- 2024: AED66.8bn ($18.2bn) from 18,693 transactions
The most expensive individual property sold last month was a magnificent home on Palm Jumeirah for AED300 million ($81.7 million). The most expensive flat sold this month was for AED164 million ($44.7 million) at Jumeirah Residences Asora Bay.
The Dubai real estate market is bolstered not only by construction trends, but also by global migration patterns of high-net-worth individuals.
According to DXBinteract’s investor profiling and foreign market comparisons, London lost 45% of its millionaires in the last decade, while Dubai gained 212%.
Al Msaddi said: “This contrast reflects a global shift in investor confidence. Dubai has become a magnet for global capital, not just as a lifestyle destination, but as a secure investment environment where wealth is preserved and grown.
“It’s where millionaires come to live, and more importantly, where they choose to invest.”
Last month, homes worth more than AED5m ($1.4m) accounted for 14% of total transactions, with 30% falling between AED1-2m ($272,000-545,000), 26% below AED1m ($272,000), 18% between AED2-3m ($545,0000-817,000), and 12% between AED3-5m ($817-000-1.4m).
Overall, first sales from developers outperformed resales 66% to 34% in terms of volume and 67% to 33% in overall value.