Dubai property market ‘shatters records’ with AED 66.8bn of transactions in May: report

Dubai’s real estate market - where Pakistanis continue to be among the top buyers - witnessed AED66.8 billion in sales transactions across 18,700 deals during May 2025, revealed a report by Property Finder, an online real estate portal.

“This historic achievement represents a staggering 44% year-over-year surge in transaction value and a solid 6% increase in volume, signalling robust market confidence and sustained investor appetite for Dubai properties,” it said in a statement posted Wednesday.

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“Just when we thought April was Dubai’s most significant month in terms of transaction value at AED62.1 bn, May eclipsed this with AED66.8 billion in transaction value,” said Cherif Sleiman, Chief Revenue Officer at Property Finder.

“This underscores the sustainability of the trends driving current growth,” he said, adding that 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.

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“With the remarkable growth in population this year, welcoming nearly 1,000 new residents each day – double of last year’s daily visitor arrivals, demand for housing is poised to reach peak levels,” he noted.

“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,” he added.

He saod 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.”

Investment hotspots

Business Bay emerged as a “premium investment magnet”, capturing 5% of total primary transaction value despite representing only 3% of volume, indicating “high-value, sophisticated investment activity”, the report noted.

Al Barsha demonstrated broad market appeal, accounting for 2% of total value while commanding 5% of transaction volume, showcasing “strong demand across price points.”

A notable AED 1.5 billion land transaction in Palm Deira showed “institutional confidence in Dubai’s long-term growth trajectory,” Property Finder said, bolstered by strong resale activity in key communities such as Business Bay, Al Barsha, and Wadi Al Safa 3.

Meanwhile consumer preferences have stayed steady for the past one year, with apartments dominating demand from home seekers, representing 78% of rental searches and 60% of buyer interest.

While studios attracted 21% of rental searches and only 15% of purchase interest, one-bedroom units commanded 35% of purchase searches and 38% of rental searches.

“This imbalance could potentially suggest that while studios are more attractive for budget-conscious renters, buyers tend to prioritise larger units, due to perceived long-term value, livability, or investment potential,” the report said.