New sales records in the Dubai real estate market

New sales records in the Dubai real estate market - Makebiz

The Dubai real estate market has been showing steady and impressive growth for several years now. May 2025 was yet another confirmation of this trend: a record was set for the total value of transactions—66.8 billion dirhams. This is almost 50% more than in May last year. Around 19,000 transactions is also a record figure, proving the rapid development of the industry. Growing investor confidence and continued interest in both completed properties and those under construction are reflected in the record figures.

Meanwhile, the volume of secondary sales also shows high results, amounting to 24 billion dirhams in 6,078 transactions, which is 8% more in volume and 21% more in value compared to May 2024.

Contrary to expectations, the recorded results do not indicate market overheating. Many analysts rightly feared an oversupply, given the scale of construction projects. Over 360,000 properties will be commissioned within five years. However, a detailed analysis shows that these fears are premature. About 265,000 of them are in the initial stages of construction and about 12,000 are nearing completion. This indicates a balanced approach to the development of the sector and rules out the threat of a sharp oversupply in the near future. The market is thus demonstrating maturity and stability, rather than signs of overheating.

The growth in demand can be attributed to a number of reasons. Buyers are attracted by extremely attractive offers: low down payments, low-interest financing options, and long-term payment plans. In addition, infrastructure investments under Dubai’s Master Plan 2040 — new residential areas, parks, schools, and metro lines — have given buyers enough confidence to invest even in properties under construction.

The following trends can be identified at the beginning of 2025:

  • About 55% of transactions are for off-plan apartment purchases.
  • Jumeirah Village Circle, Dubai Marina, and Business Bay topped the list of the most popular areas.
  • The average sale price of real estate is 2.7 million dirhams. At the same time, the price per square meter in apartments under construction increased by 28.6% and reached 1,926 dirhams.
  • One-bedroom apartments topped the sales rankings, especially in the center of the emirate.

The increase in prices and sales volumes in the residential sector confirms the emirate’s attractiveness as a place to live and invest. Most high-profile deals at the end of spring involving the sale of luxury villas and apartments are a clear demonstration of the high demand for elite properties. They testify not only to the purchasing power of wealthy investors, but also to the prestige and uniqueness of the properties.

Commercial sector is characterized by a shortage of office and retail space. The almost complete absence of new properties, combined with high demand, creates favorable conditions for further price increases. 

The success of the Dubai real estate market is not a short-term trend, but the result of a long-term development strategy for the city. Given the continuing inflow of foreign capital, infrastructure development, and economic diversification, we can confidently say that the positive dynamics in the real estate market will continue in the long term. Of course, no market is immune to corrections, but fundamental factors indicate that Dubai will remain an attractive place to live and invest in real estate for many years to come.

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