Dubai’s Land Department announced today that it recorded more than AED3.53 billion ($962 million) real estate transactions yesterday. The number comes as no surprise as the city continues to break records across all segments of the property market.
In May alone, Dubai’s residential market demonstrated resilient capital performance, recording AED54.4 billion in transactions, a 39.08 percent annual increase. A total of 17,475 transactions were registered, reflecting both depth and consistency across off-plan and ready segments. Real estate activity in Dubai was underpinned by structured developer launches, accessible mortgage rates and sustained inflows of foreign capital.
Investor confidence drives off-plan sales surge
Last month, off-plan sales represented 60.2 percent of total market volume, driven by investor confidence in phased masterplans, payment flexibility, and community-led offerings. In its latest monthly report, Springfield Properties also revealed that the secondary market accounted for 39.8 percent of transactions, led by end-user activity in villa-led zones and branded residential stock.
Pricing remained broadly stable across key family-oriented districts, including Dubai Hills Estate, Business Bay and Jumeirah Village Circle.
Jumeirah Village Circle led transactional volume with 1,800 deals at an average price point of AED1.07 million, highlighting the sustained appetite for mid-market livability. Meanwhile, Palm Jumeirah and Downtown Dubai continued to anchor high-value activity, with average sales exceeding AED5 million across branded and waterfront stock.
Key factors attracting investors to Dubai real estate
Several factors continue to make Dubai’s real estate market favorable for investors, including attractive financing conditions, with sub-4 percent fixed mortgage offerings available across major lenders. Currency movements further support international transactions, with buyers from Europe, India and Russia capitalizing on improved AED affordability amid FX fluctuations.
In addition, Dubai’s population reached approximately 3.95 million in May, reinforcing leasing and ownership demand across both villa and apartment segments. High-absorption areas include Palm Jumeirah and Jumeirah Islands, where average villa rentals exceed AED1.2 million. Meanwhile, branded apartments in Business Bay and Dubai Creek Harbour maintain strong yield performance and stable occupancy.
As Q2 progresses, Dubai’s residential real estate market continues to show consistency in transaction volume and pricing across both off-plan and completed inventory. Developer activity remains disciplined, with launches paced to match buyer demand and capital absorption. Supported by financing stability and population growth, the market outlook remains steady across key segments.
Top investor hotspots for H2 2025
The world looks at Dubai as a trusted safe haven in times of ongoing geopolitical uncertainty, with FDI in the city increasing by 15 percent annually in early 2025, according to a recent round-up by Oia Properties. The real estate market falls in line with this trend and continues to attract global buyers.
As demand and investment in Dubai’s real estate market grow, the round-up highlights prominent investor hotspots that are set to gain increased traction in the second half of 2025.
Among these areas is Dubai South, which enjoys an average sale price of AED954 p/sqft. for apartments. With significant infrastructure projects underway, the area is poised for substantial growth and increased investor interest.
Dubai Hills Estate, another investor hotspot, is projected to see an annual appreciation rate of 9.1 percent, supported by high demand and premium community facilities. Meanwhile, Arabian Ranches saw property prices rise 13 percent in Q3 2024, with continued steady growth expected due to family-friendly amenities and suburban appeal, making it among the top choices for investors seeking to enter Dubai’s real estate market.
Palm Jumeirah is anticipated to post an annual appreciation rate of 7.7 percent, driven by limited supply and global investor interest, while Dubai Marina recorded a 7.8 percent annual price increase, reflecting sustained demand, with the area maintaining its status as a prime residential destination.
Other areas that stand out are Business Bay, Downtown Dubai and Jumeirah Village Circle (JVC), which continue to see high demand and strong rental yields.
Read: Is now the right time to buy real estate in Dubai?
Top three market drivers in H2 2025
Oia Properties also highlighted prominent market themes for the first half of the year, which are set to continue throughout 2025, including the rise of branded residences, the shift to suburbs and the growing demand for villas.
Branded residences in Dubai’s real estate sector command a 30–40 percent premium over non-branded luxury units, with a huge number of new launches in Dubai in early 2025, including Chelsea Residences by Damac, Trump International Hotel & Tower, Dubai and the Bugatti Residences by Binghatti. Inventory in this segment grew by 23 percent in 2024, but demand still outpaces supply in prime locations. In addition, over 60 percent of buyers in this category are overseas investors or second-home purchasers.
Moreover, suburban areas saw a price appreciation of 10–15 percent as urban prices peaked in 2024 and buyers looked further afield for their investments. Accordingly, areas such as Dubailand and Dubai South saw a 35 percent increase in transaction volume in early 2025. Meanwhile, rental yields in suburban zones average 6–7 percent, compared to 4–5 percent in prime urban centers.
The report also noted the ongoing surge in demand for luxury villas that started during COVID. Villa prices surged by 20–25 percent from 2022 to early 2025, led by demand for space and privacy. Villas now account for 28 percent of total residential sales, up from 18 percent in 2022. However, the report revealed that luxury villa supply is set to increase by 12–15 percent over the next 12 months, potentially leading to a price correction of 5–10 percent in late 2025 to 2026.
