If a city keeps growing in a vision, its real estate follows in value.

And that’s exactly what’s happening in Dubai.

After months of strong investor interest, population growth and a strong economy, Dubai’s property market picked up even more speed in May 2025. A total of 18,693 properties were sold which is a 6% increase compared to May last year.

SALES VOLUME	18,693 Properties (6% vs May 2024)
AVERAGE PRICE PER SQ. FT.	AED 1604 (2.7%)
TOTAL SALES VALUE	AED 66.8 B (up 43.9%)

RENTS ARE RISING AS POPULATION

The report by ValuStrat, a leading real estate consultancy, highlighted that the population is projected to reach 4 million in the third quarter of this year. And the rent demand is growing with that.  In May

• Apartments rented for AED 80,000 / year (up 6.7%)
• Villas rented for AED 190,000 /year (up 15.2%)
• Commercial spaces rented for AED 20,000 per year

Property Prices are Increasing

Because demand is high and supply is limited in some areas, prices are going up.

According to DXB Interact, the average property price per square foot hits AED 1,604, 2.7 % compared to last year. Investors are paying close attention to off-plan properties. Iconic developments such as The Valley by Emaar, Dubai Creek Harbour and Sobha One remain top investors’ choice. The sustained demand for off-plan properties is driven by competitive pricing, flexible payment plans and strong capital appreciation potential.

VILLAS IN HIGH DEMANDS

More families are looking for bigger homes, more space, and community living. 

• In May 3,505 villas were sold, which is a 24% increase from May 2024
• These sales were worth AED 20.9 billion

Villas near schools, parks, and the waterfront are especially popular. And the highest growth in the villa segment was led by the Jumeirah Bay.  Meanwhile the lowest gains were recorded in Mudon which has remained relatively stable for the nine consecutive years.

 

Apartments Still Lead in Volume

Dubai’s main city areas like Downtown, Business Bay, and JVC remain popular especially among investors and young professionals.

14,008 apartments were sold in May (up 0.3%)

Total apartment sales value: AED 29.7 billion

The highest capital gains were seen in The Greens (25.5%) , Dubailand Residences complex, palm Jumeirah, Dubai Silicon Oasis and Town Square. City living is still a strong part of the market.

Land (Plots) See Huge Growth

Buyers are also showing strong interest in land plots- 

• 738 plots were sold, which is a 148.5% increase
• These were worth AED 14.7 billion

 Average Property Prices in May 2025

Property prices are going up in all categories- 

• Apartments: AED 1.3 million
• Villas: AED 3.4 million (up 12.1%)
•  Commercial properties: AED 1.7 million (up 16.1%)
• Land plots: AED 8.3 million (up 27.7%)

 More Buyers Using Mortgages

Banks have introduced better mortgage offers this year, including low down payments and longer plans. This encouraged more people to finance their purchases.

• Mortgage transactions- 4,668 (up 26.4%)
• Total mortgage value- AED 15 billion

It’s clear that more buyers have confidence in Dubai’s market and are planning for the long term.