The Dubai real estate market continues its dynamic trajectory in May 2025, showcasing robust activity and notable shifts across various segments. For discerning buyers, astute investors, and sellers looking to make their next move, understanding these trends is key. At NOVVI Properties, we're dedicated to providing you with the latest intelligence to inform your property decisions. Here’s a snapshot of what the market looked like in May 2025.
Overall Market Performance: Strong Growth in Transactions and Value
May 2025 painted a picture of a thriving market. A total of 18,693 sales transactions were recorded, marking a 6% increase compared to May 2024. Even more impressively, the total sales value surged to 66.8 billion AED, a significant 43.9% rise year-on-year. This indicates not only more transactions but also a move towards higher-value properties or a general appreciation in property values. The average price per square foot also saw an uptick, rising by 2.7% to 1,604 AED compared to the previous year.
It's worth noting that shifts in average prices across Dubai can often be attributed to variations in the locations and types of properties sold year-over-year. For instance, a higher concentration of sales in premium areas in one year compared to another can influence the overall average.
When looking at specific property types, May 2025 revealed some interesting trends compared to May 2024:
- Residential Sales Prices:
- Average villa prices continued their upward trend, reaching 3.4M AED (a 12.1% increase).
- Average apartment prices saw a slight dip to 1.3M AED (a -1.5% change).
- Plots demonstrated significant appreciation, with average prices hitting 8.3M AED (a 27.7% increase).
- Commercial properties also saw a healthy price rise to 1.7M AED (a 16.1% increase).
- Residential Rental Prices:
- The rental market for apartments remained strong with average rents at 80K AED (up 6.7%).
- Villas continued to be in high demand for renters, with average rents climbing to 190K AED (a 15.2% increase).
- Notably, average commercial rents showed a significant decrease to 20K AED (down -80.7%), which could indicate sector-specific adjustments or an influx of new commercial supply.
Sales value was predominantly driven by apartments and villas, each contributing around 44% to the total, followed by plots at 11% and commercial properties at 1%.
Market Activity: Off-Plan Shines, Resale Remains Robust
The breakdown between initial sales (off-plan) and resales highlights the continued confidence in Dubai's future development and the maturity of its secondary market:
- First Sale (Off-Plan) Transactions: Dominated the market with 14,008 transactions, amounting to a sales value of 29.7 billion AED. This underscores the strong demand for new projects and the appeal of off-plan investments.
- Resale Transactions: The secondary market also performed well, with 3,505 properties changing hands, totaling 20.9 billion AED in value.
Mortgage activity also indicated a busy market, with the number of mortgage transactions increasing by 26.4% compared to May 2024, reaching 4,668 transactions.
The demand in May 2025 was particularly concentrated in these five key areas by sales volume:
- Jumeirah Village Circle (JVC)
- Al Yelayiss 2
- Business Bay
- Wadi Al Safa 5
- Dubai Marina
These locations offer a mix of investment opportunities and lifestyle choices, catering to diverse preferences from affordable family living in JVC to the bustling urban environment of Business Bay and the premium waterfront lifestyle of Dubai Marina.
Sales by Price: Mid-Market Leads Volume
Examining property sales by price range (excluding mortgage transactions) for May 2025 reveals:
- Properties below 1 million AED accounted for 26% of sales.
- The 1-2 million AED bracket was the most active, representing 30% of transactions.
- Properties priced between 2-3 million AED made up 18% of sales.
- The 3-5 million AED range constituted 12%.
- Properties valued at more than 5 million AED contributed 14% of the sales volume, indicating a healthy luxury segment.
Luxury Market Highlights: Setting New Benchmarks
Dubai's luxury segment continues to capture global attention with record-breaking sales:
- Most Expensive Apartments Sold (May 2025):
- An apartment in Jumeirah Residences Asora Bay at Jumeirah First topped the list at 164 million AED.
- Followed by units in The Royal Atlantis Resort & Residences (Palm Jumeirah) and Peninsula Dubai Residences Tower 1 (Jumeirah Second), both at 65 million AED.
- Most Expensive Villas Sold (May 2025):
- A villa in Palm Jumeirah fetched an astounding 300 million AED.
- Other significant high-value villa sales occurred in Wadi Al Safa 3 (158M AED) and World Islands (79M AED).
These sales underscore the strong appeal of Dubai's high-end properties to ultra-high-net-worth individuals.
Spotlight on Best-Selling Projects (May 2025)
Demand was evident across various new and existing communities:
Top first Sale (Off-Plan) Apartments:
Sobha Solis: 253 units (Median Price: 1.2M AED)
Sobha Orbis: 216 units (Median Price: 1.2M AED)
Peace Lagoons By Peace Homes: 170 units (Median Price: 763.5K AED)
Top first Sale (Off-Plan) Villas:
The Oasis - Ostra: 246 units (Median Price: 15.5M AED) – indicating very strong luxury off-plan villa demand.
The Valley - Rivera: 176 units (Median Price: 5.2M AED)
Damac Islands - Fiji 1: 154 units (Median Price: 2.4M AED)
Top Resale Apartments:
Azizi Riviera (All Buildings): 119 units (Median Price: 700K AED)
Golf Promenade: 71 units (Median Price: 819.9K AED)
Top Resale Villas:
Damac Islands Bora Bora 3: 147 units (Median Price: 2.4M AED)
Damac Islands - Maldives 4: 100 units (Median Price: 2.4M AED)
What This Means for You
- For First-Time Homebuyers: Areas like JVC and communities with popular resale apartments like Azizi Riviera offer various options. The significant volume in the 1-2 million AED price bracket suggests a competitive but active market.
- For Luxury Property Investors: The continued rise in villa prices, particularly in prime areas like Palm Jumeirah, and the high value of off-plan villa projects like The Oasis - Ostra, signal sustained strength and opportunity in the luxury tier. The performance of branded residences also remains a key indicator.
- For Residential Sellers: Strong overall sales volume and value, especially for villas and in high-demand areas, suggest favorable conditions for sellers. Understanding the median prices achieved in popular projects can help in pricing strategies.
Navigate the Market with NOVVI Properties
The Dubai real estate market in May 2025 demonstrates continued growth, investor confidence, and diverse opportunities across various segments. Whether you are looking to buy your first home, invest in a luxury villa, explore off-plan projects, or sell your property, the experts at NOVVI Properties are here to guide you.
Our customer-focused approach, deep market expertise, and leverage of technology ensure you receive tailored advice and achieve your property goals.
