Dubai real estate: Strategic investment hotspots emerge as market posts historic $18.19 billion transactions in May 2025

Economy ME

3 days ago

Dubai's real estate market posted yet another month of record-breaking activity, with sales transactions reaching AED66.8 billion ($18.19 billion) across 18,700 deals last month.
In its May 2025 report,
Property Finder
revealed that this historic achievement represents a staggering 44 percent year-over-year surge in transaction value and a solid 6 percent increase in volume, signaling robust market confidence and sustained investor appetite for Dubai properties.
'Just when we thought April was Dubai's most significant month in terms of transaction value at AED62.1 billion, May eclipsed this with AED66.8 billion in transaction value. This underscores the sustainability of the trends driving current growth,' stated Cherif Sleiman, chief revenue officer at Property Finder.
Primary ready sales surge 314 percent
The historic performance of Dubai's real estate market was driven by strong growth in ready transactions for both primary and secondary segments. Primary ready sales more than quadrupled compared to May 2024, reaching AED17.9 billion. This represented a 314 percent increase in value across 2,400 transactions and a 145 percent growth.
Secondary ready sales also reached a new peak, with 6,078 transactions worth AED24 billion, representing 8 percent and 21 percent year-over-year growth in volume and value, respectively, underscoring strong and sustained demand in the resale market.
'Dubai continues to lead real estate innovation by example, as evidenced by the recent launch of the region's first licensed tokenized property investment platform by Dubai Land Department. With the remarkable growth in population this year, welcoming nearly 1,000 new residents each day, double that of last year's daily visitor arrivals, demand for housing is poised to reach peak levels,' added Sleiman.
The primary market continued to dominate in May 2025. Overall, primary ready and off-plan sales skyrocketed, rising by 65 percent year-over-year to reach AED37 billion. Meanwhile, the secondary sales market set a new record in May 2025, with AED29 billion in transaction value and 8,471 transactions, up 23 percent and 15 percent year-over-year, respectively.
'Against this backdrop, the real estate market is enjoying positive momentum, fuelled by digital transformation, international investor appetite, and a surge in demand for premium living,' added Sleiman.
Strategic investment hotspots emerge
Across Dubai's real estate market, key investment areas emerged last month. Business Bay emerged as a premium investment magnet, capturing 5 percent of total primary transaction value despite representing only 3 percent of volume, indicating high-value, sophisticated investment activity.
Meanwhile, Al Barsha demonstrated broad market appeal, accounting for 2 percent of total value while commanding 5 percent of transaction volume, showcasing strong demand across price points.
A notable AED1.5 billion land transaction in Palm Deira further underscored institutional confidence in Dubai's long-term growth trajectory, bolstered by strong resale activity in key communities such as Business Bay, Al Barsha and Wadi Al Safa 3.
'Real estate leaders who participated in Property Finder's recent roundtable are confident of transaction activity picking up throughout 2025, buoyed by unprecedented interest from international investors, alongside a strong off-plan performance and vibrant luxury resale activity. These trends speak to the city's enduring appeal and resilience, even amid global uncertainty. As Dubai shapes the future of real estate, Property Finder remains committed to empowering buyers and investors with the insights they need to move with confidence,' Sleiman added.
Read: Dubai launches world's first property token ownership certificate, drawing global investor surge
Apartments dominate demand
Consumer preferences have remained steady for the past year, with apartments dominating demand from home seekers, representing 78 percent of rental searches and 60 percent of buyer interest.
While studios attracted 21 percent of rental searches and only 15 percent of purchase interest, one-bedroom units commanded 35 percent of purchase searches and 38 percent of rental searches.
This imbalance could potentially suggest that while studios are more attractive for budget-conscious renters, buyers tend to prioritize larger units due to perceived long-term value, livability or investment potential.