Dubai Real Estate Delivers AED 54.5B in May Sales with 15% Growth Across Sales and Leasing

Dubai’s residential property market sustained its strong momentum through May 2025, with notable gains across both sales and leasing segments. According to the latest data from Betterhomes, the sector witnessed double-digit monthly growth, driven by surging buyer interest, robust investor sentiment, and ongoing demand for both off-plan and completed units.

Surge in Residential Sales Transactions and Values

In May, the number of residential sales transactions climbed to 17,504, marking a 15.1% rise compared to April. The total value of sales reached AED 54.48 billion, reflecting an 18% monthly increase. This upswing was supported by a 4.5% rise in the average price per square foot, which now stands at AED 1,808. Off-plan deals continued to dominate the landscape, accounting for 57% of the activity, while the secondary market gained traction with a 43% share, highlighting sustained interest in ready-to-move-in homes.

Balanced Financing and Investor Confidence

The market showed a near-even split between cash and mortgage-financed purchases, with 48% of buyers opting for cash and 52% using financing. Investors played a leading role, representing 64% of all buyers, a strong indication of faith in Dubai’s long-term growth. Among the most sought-after communities were Dubai Hills Estate, The Springs, and Jumeirah Village Triangle. Emaar led the pack in developer performance, with off-plan sales totalling AED 3.76 billion and title deed transactions reaching AED 10.49 billion.

Steady Growth in Leasing Activity

The leasing sector also experienced healthy growth, with 33,917 lease agreements signed in May, a 15.3% increase over the previous month. A key trend was the sharp rise in new rental contracts, which accounted for 42% of all leases, up from 34% in April. This uptick reflects a surge of new tenants entering the market. Popular residential zones such as Bur Dubai and Damac Hills 2 saw notable rent increases, with Bur Dubai experiencing a 7.5% jump and Damac Hills 2 rising nearly 4%.

Rising Rents and Tenant Demand

Betterhomes reported a 10% rise in tenant inquiries in May, alongside an increase in average lease prices across all residential categories. The average annual rent for apartments reached AED 141,250, while townhouses averaged AED 198,000 and villas AED 405,000. Flexible payment terms remain common, with one to four cheque payments continuing as the preferred mode for rental agreements.

“Dubai’s property market is demonstrating a remarkable level of depth and resilience,” said Louis Harding, CEO of Betterhomes. “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.”

With strong fundamentals and a growing reputation as a global lifestyle and business hub, Dubai is increasingly seen by investors as a safe, high-yielding market in an uncertain global environment.