Staff Report
Dubai, UAE
Dubai’s realty surpassed its previous monthly record of Dh62.4 billion sales transactions in April 2025 with Dh66.8 billion sales transactions in May 2025, exhibiting 7 percent growth. The latest figure also jumped 49.9 percent year-on-year from May 2024. Furthermore, May’s total of 18,693 transactions also made it the second best-selling month on record in terms of volume, according to fäm Properties.
The company’s CEO, Firas Al Msaddi, says the data from DXBinteract underlines the strength and stability of a market which is evolving, without any broad threat of oversupply in the residential sector, but now facing an undersupply of office space.
In response to a recent Fitch Ratings forecast for a 15 percent correction in Dubai residential property prices, Al Msaddi said, “While growth has slowed, that’s not the same as a correction. A slowdown in growth is a sign of market maturity, not market weakness.
“Approximately 363,000 residential units are expected to be delivered in Dubai over the next five years. However, over 270,000 of those are still at early construction stages, with only 0–20% progress as of today.”
As many as 12,000 units are close to completion (80–99 percent progress), dispelling any notion of a market-wide oversupply. Additionally, completed project deliveries in 2024 are down 23 percent compared to 2023, showing the city is not facing a glut of ready units.
“In specific segments, there may be temporary price adjustments,” said Al Msaadi. “For example, Jumeirah Village Circle is expected to receive around 20,000 new units over the coming 4 to 5 years.
“This concentrated delivery volume may place short-term pressure on pricing in that area, but this is not reflective of the broader market. Even if a correction occurs in pockets of the residential sector, it’s temporary. Dubai’s demand base is strong, and absorption will catch up.”
On the other hand, Dubai is facing an undersupply of office space. “Quality commercial space remains extremely limited, with strong demand and minimal new inventory, especially in prime business zones,” said Al Msaddi. “As a result, no price correction is expected in the office segment, which continues to see firm value appreciation.”
Dubai property sales in May have soared in value over the last five years, from Dh2.3 billion (1,400 transactions) in 2020 to Dh46.4 billion (17,600) in 2024.
The most expensive individual property sold last month was a luxury villa at Palm Jumeirah which fetched Dh300 million. The most expensive apartment sold during the month went for Dh164 million at Jumeirah Residences Asora Bay.
The Dubai real estate market is supported not only by construction dynamics, but by global migration patterns of high-net-worth individuals. As per DXBinteract’s investor profiling and international market comparisons, London lost 45 percent of its millionaires over the past decade, while Dubai gained 212 percent during the same period.
“This contrast reflects a global shift in investor confidence,” said Al Msaddi. “Dubai has become a magnet for global capital, not just as a lifestyle destination, but as a secure investment environment where wealth is preserved and grown. It’s where millionaires come to live, and more importantly, where they choose to invest.”
With properties worth more than Dh5 million accounting for 14 percent of total sales last month, 30 percent came in the Dh1-2 million range, 26 percent below Dh1 million, 18 percent between Dh2-3 million and 12 percent between Dh3-5 million. Overall, first sales from developers far exceeded those of resales – 66 percent over 34 percent in terms of volume and 67 percent over 33 percent in overall value.
Ends
Also read: Dubai realty marks monthly all-time high with Dh62.4 bn transactions in April 2025
