Dubai’s real estate market continued its strong performance in May 2025, with a 15.1% month-over-month increase in residential sales transactions, totaling 17,504 deals, according to a report by Betterhomes.
This sharp rise pushed the total market value to an impressive AED 54.48 billion, or roughly $14.8 billion, marking an 18% increase over April. The average price per square foot also climbed 4.5%, reaching AED 1,808 — a signal of Dubai’s resilient and growing housing sector.
“This isn’t just short-term momentum,” said Louis Harding, CEO of Betterhomes. “Dubai is showing long-term confidence, global appeal, and increasing demand from both seasoned investors and new residents.”
Off-plan properties continued to dominate the market with 57% share, while secondary market transactions contributed 43%. Notably, investor activity made up 64% of all purchases, with buyers split nearly evenly between cash (48%) and mortgage (52%).
Top-performing communities included Dubai Hills Estate, Jumeirah Village Triangle, and The Springs, while Emaar led developer performance with AED 3.76B in off-plan and AED 10.49B in title deed transactions.
The leasing segment also showed significant growth. There were 33,917 lease transactions in May, up 15.3% from April, with new contracts making up 42% of all activity — up from 34% the previous month.
Rental prices continued their upward trajectory, with areas like Bur Dubai seeing a 7.5% monthly increase and Damac Hills 2 showing a 4% rise. Tenant interest rose by 10%, while average lease values increased across all property types.
Betterhomes reported the following average annual rents:
- Apartments: AED 141,250
- Townhouses: AED 198,000
- Villas: AED 405,000
Tenants continued to favor 1 to 4 cheque payments as their preferred lease structure.
At CityNest Realty, we help clients navigate Dubai’s rapidly evolving real estate landscape — whether you’re buying off-plan, investing in rentals, or seeking long-term property value. For expert consultation on the latest developments and projects across Dubai and Mohali, reach us at:
📞 +91 90411 90746
📧 realtycitynest@gmail.com / info@citynestrealty.in
🌐 www.citynestrealty.in
How much was the total value of real estate sales in May?
The total sales value reached AED 54.48 billion (approx. $14.8 billion), reflecting an 18% monthly growth.
Which communities were most popular among buyers?
The Springs, Dubai Hills Estate, and Jumeirah Village Triangle were among the top-performing areas.
Who dominated the market—investors or end-users?
Investors accounted for 64% of all property buyers, with nearly equal interest from cash and mortgage buyers.
What happened in the rental market during May?
Leasing activity rose by 15.3%, with average rents increasing in areas like Damac Hills 2 and Bur Dubai. New rental contracts made up 42% of all leases.
