Dubai Real Estate Skyrockets: AED 66.8B in May Sales, Up 44%!

Dubai's real estate sector has made headlines again, setting a new benchmark with AED 66.8 billion ($18.2 billion) in property sales for May 2025. This figure marks a dramatic 44% surge in value compared to May 2024 and is the highest ever recorded in the emirate’s history.

The number of transactions reached 18,700, placing May as the second-highest month for volume on record. Developer-led first sales dominated the landscape, contributing 66% of transaction volume and 67% of value, driven by growing confidence among local and global investors.

Primary and Secondary Markets Soar

Strong performances in both primary and secondary segments fueled the growth. Off-plan and ready sales surged 65% year-on-year, reaching AED 37 billion. Notably, primary ready sales alone rose by 314% in value, totalling AED 17.9 billion across 2,400 deals — a 145% volume increase from the previous year.

Meanwhile, the secondary market also witnessed remarkable growth, with AED 29 billion in transactions through 8,471 deals, up 23% in value and 15% in volume. This included AED 24 billion worth of resale-ready sales from 6,078 transactions, highlighting strong confidence in completed inventory.

Luxury Leads the Charge

High-value deals were a standout feature in May. A villa on Palm Jumeirah was sold for AED 300 million ($81.7 million), while a Jumeirah Residences apartment fetched AED 164 million ($44.7 million). Overall, 14% of sales exceeded AED 5 million, while 30% fell in the AED 1–2 million range.

Investment hotspots included Business Bay, which accounted for 5% of the primary market’s total value from just 3% of the volume, showcasing investor preference for premium assets. Al Barsha also stood out by contributing 5% of the total transaction volume. A landmark AED 1.5 billion land deal in Palm Deira demonstrated institutional confidence in Dubai’s long-term growth.

Top 5 Areas by Total Sales – May 2025

Below are the top-performing areas in Dubai based on total real estate sales for May 2025, highlighting where investment activity was most concentrated.

Tokenization and Tech Transformation

One of the defining features of this real estate boom is Dubai’s pioneering push into tokenization. The Dubai Land Department launched the region’s first licensed tokenized property investment platform, opening new doors for fractional property ownership. This came alongside a record $3 billion real estate blockchain partnership between MultiBank Group, MAG, and Mavryk.

Regulatory momentum followed suit. On May 19, Dubai's Virtual Asset Regulatory Authority updated its guidelines to support real-world asset tokenization. By the end of the month, a collaborative platform by the Dubai Land Department, Central Bank, and Dubai Future Foundation allowed investors to buy tokenized shares in “ready-to-own” properties.

Strong Demand and International Appeal

Despite global economic uncertainty, investor interest remains high. Property Finder data revealed that apartment units dominated demand, accounting for 78% of rental searches and 60% of purchase interest. One-bedroom apartments led the pack, receiving 38% of rental and 35% of buyer searches, while studios remained more attractive to renters than buyers.

Dubai’s position as a global magnet for high-net-worth individuals is evident. Over the past decade, the city has seen a 212% rise in millionaires, while cities like London have seen declines. This demographic shift is fuelling the luxury property boom and bolstering demand for prime real estate.

Conclusion: A New Era of Real Estate

The AED 66.8 billion milestone in May 2025 underscores Dubai’s resilience, innovation, and investor magnetism. With tokenization, digital transformation, and global capital flowing in, Dubai isn’t just breaking records — it’s redefining real estate’s future.

Industry experts agree that these trends will sustain momentum well into 2025. As Cherif Sleiman of Property Finder summed it up: “Dubai continues to lead real estate innovation by example, and demand shows no signs of slowing down.”