According to a Betterhomes research, the residential real estate market in Dubai has continued to develop in May 2025, with double-digit monthly growth in both leasing and sales activities.
In May, 17,504 transactions were recorded in the home sales market, a 15.1% rise over April.
“Dubai’s property market is demonstrating a remarkable level of depth and resilience. This isn’t just short-term momentum. It reflects long-term confidence in the city’s economic direction, quality of life, and global appeal. We’re seeing demand from both seasoned investors and new residents who see Dubai as a place to build their future. The fundamentals are strong, and the appetite for quality homes, both to own and to rent, continues to grow,” Louis Harding, CEO of Betterhomes said.
The Dubai real estate market is expanding.
The average price per square foot increased by 4.5% to AED 1,808, while the total sales value reached AED 54.48 billion, up 18% monthly.
At 57%, off-plan trades dominated the market, while secondary market share grew to 43%. Investors made up 64% of purchasers, while cash and mortgage buyers were almost equal at 48% and 52%, respectively.
The Springs, Jumeirah Village Triangle, and Dubai Hills Estate were among the communities that drew purchasers.
With contributions of AED 3.76 billion and AED 10.49 billion, respectively, Emaar continued to be the best-performing developer in both off-plan and title deed transactions.
33,917 lease transactions were recorded in May, representing a 15.3% rise in leasing activity. The percentage of all leasing activity that consisted of new rental contracts increased from 34% the previous month to 42%.
Areas with average rent increases were Damac Hills 2, where rents rose by over 4% per month, and Bur Dubai, where they rose by 7.5% per month.
Tenant leads increased by 10%, according to Betterhomes, while average lease values increased for all property types.
The average yearly rent for townhouses, villas, and apartments leased through Betterhomes was AED 198,000, AED 405,000, and AED 141,250, respectively. Tenants’ preferred rental terms continued to be one to four check payments.
