The Dubai real estate market is experiencing significant growth, with property sales jumping by 15% in May 2025. This surge has elevated the total market value to an impressive $14.8 billion. According to a recent report by Betterhomes, both sales and leasing activities have recorded substantial month-on-month increases, reinforcing the resilience and appeal of Dubai’s residential property sector.
In May, the residential sales market recorded 17,504 transactions, marking a 15.1% increase compared to April. This robust activity underscores a revitalized interest among both seasoned investors and new residents seeking to make Dubai their home.
“Dubai’s property market is demonstrating a remarkable level of depth and resilience. This isn’t just short-term momentum. It reflects long-term confidence in the city’s economic direction, quality of life, and global appeal. We’re seeing demand from both seasoned investors and new residents who see Dubai as a place to build their future. The fundamentals are strong, and the appetite for quality homes, both to own and to rent, continues to grow,” stated Louis Harding, CEO of Betterhomes.
Dubai Property Market Posts Growth
Total sales value reached AED 54.48 billion, representing an 18% increase month-on-month, while the average price per square foot rose by 4.5% to AED 1,808. Off-plan transactions dominated the market with a 57% share, while the secondary market captured 43%. Interestingly, the ratio of cash buyers to mortgage buyers was nearly balanced, standing at 48% and 52% respectively. Notably, investors accounted for 64% of all buyers in this thriving Dubai real estate landscape.
Areas such as Dubai Hills Estate, The Springs, and Jumeirah Village Triangle witnessed high demand, drawing significant interest from buyers. Emaar consistently performed well, leading both off-plan and title deed transactions, contributing AED 3.76 billion and AED 10.49 billion respectively.
Leasing Activity Reflects Strength
Leasing activity in the Dubai real estate sector also saw a noteworthy spike, increasing by 15.3% in May, with 33,917 lease transactions recorded. New rental contracts accounted for 42% of all leasing activity, a rise from 34% the previous month. This increase is indicative of the strong demand for rental properties in the region.
Average rents climbed in various locales, with Bur Dubai witnessing a 7.5% month-on-month rise and Damac Hills 2 experiencing nearly a 4% increase. Betterhomes reported a 10% uptick in tenant leads, further emphasizing the growing interest in rental properties.
Apartments leased through Betterhomes averaged AED 141,250 annually, while townhouses and villas had average rents of AED 198,000 and AED 405,000, respectively. Rental terms commonly consisted of one to four cheque payments, reflecting tenant preferences throughout the market.
The resilience of the Dubai real estate market, illustrated by the significant jump in property sales and robust leasing activity, showcases the city’s ongoing allure. Investors and residents alike continue to find opportunities that promise both quality living and profitable investments in this vibrant metropolis.