Dubai real estate sector sets record $18.2bn sales in single month with $82m Palm Jumeirah villa leading spree

Arabian Business

2 days ago

The Dubai real estate market set a new all-time monthly sales record of AED66.8bn ($18.2bn) in May, a 49.9 per cent increase in value on the same month last year, according to a market update issued by fäm Properties.
The data reveals that last month's total of 18,693 transactions also made it the second best-selling month on record in terms of volume.
Fäm Properties CEO Firas Al Msaddi said the data from DXBinteract underlines the strength and stability of a market which is evolving, without any broad threat of oversupply in the residential sector, but now facing an undersupply of office space.
Dubai real estate May 2025
In response to a recent Fitch Ratings forecast for a 15 per cent correction in Dubai residential property prices, Al Msaddi said: 'While growth has slowed, that's not the same as a correction. A slowdown in growth is a sign of market maturity, not market 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 said that just 12,000 units are close to completion (80–99 per cent progress), dispelling any notion of a market-wide oversupply.
Additionally, completed project deliveries in 2024 are down 23 per cent compared to 2023, showing the city is not facing a glut 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 luxury villa at Palm Jumeirah which fetched AED300m ($81.7m). The most expensive apartment sold during the month went for AED164m ($44.7m) at Jumeirah Residences Asora Bay.
The Dubai real estate market is supported not only by construction dynamics, but by global migration patterns of high-net-worth individuals.
As per DXBinteract's investor profiling and international market comparisons, London lost 45 per cent of its millionaires over the past decade, while Dubai gained 212 per cent during the same period.
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.'
With properties worth more than AED5m ($1.4m) accounting for 14 per cent of total sales last month, 30 per cent came in the AED1-2m ($272,000-545,000) range, 26 per cent below AED1m ($272,000), 18 per cent between AED2-3m ($545,0000-817,000) and 12 per cent between AED3-5m ($817-000-1.4m).
Overall, first sales from developers far exceeded those of resales – 66 per cent over 34 per cent in terms of volume and 67 per cent over 33 per cent in overall value.