Property sales in Dubai sets a new May record as overseas demand rises

According to the property data portal DXB Interact, residential property sales in Dubai hit a new high last month, recording a 44% increase in sales value and a 6% increase in sales volume compared to May 2024. The 18,700 units sold in May 2025 at a valuation of AED 66.8bn has taken the YoY growth to over AED 289bn, with annual sales volume growing by 20% to reach 86,700 units. Meanwhile, the average price per square foot increased by 4% to reach AED 1,600.

Growing investor enthusiasm in off-plan sales

Of the total 80,000+ units sold since the start of 2025, nearly 64% (50,110) of properties were off-plan, either in the construction or planning stage. Lower entry prices combined with flexible payment plans, developer credibility, and the possibility of substantial capital appreciation are some factors that encourage investors to come in early.

Indian and British buyers lead overseas investment

Drawn by the UAE’s favourable government policies, such as tax-free rental income and Golden Visa initiatives for long-term residency, overseas investors lead the property buying landscape in Dubai. While over 75% of all property purchases in the Emirate are by overseas buyers, Indian and British passport holders are firmly in the lead. With a 22% market share, Indians are at the top, followed by Britishers at 17% and Chinese buyers at 14%.

Apartments and villas continue to be the top choice

Of the total property transactions last month, 44% were dominated by apartments, 31% by villas, 22% by plots, and 3% by commercial units. Furthermore, 66% of all units sold were brand-new, marking their first sale, while the remaining 34% were resale units. Currently, there are 1,425 housing projects actively under construction, with a total pipeline of 378,717 units.

Areas with the highest YoY growth in sales volume and value

A Greenlight for blockchain and tokenised property holdings

A £2.2bn tokenisation deal between Dubai’s Multibank Group, luxury real-estate developer MAG, and blockchain provider Mavryk has set the stage for tokenised property ownership. The deal was authorised by Dubai’s official crypto regulator, Virtual Asset Regulatory Authority (VARA), and allows investors to buy tokenised shares in ready-to-own Dubai properties.

Demand soars as population closes in on four million

As of May 2025, Dubai’s population grew by 6.3% annually to reach 3.95m as the Emirate added over 230,000 new residents in just one year. The added volume of new residents coming to work and settle down has led to a significant rise in housing and rental demand as rents rose by 10% annually.

According to the Dubai Land Department, the average asking rent per annum for a one-bedroom apartment now stands at AED 90,000, while a three-bedroom apartment costs approximately AED 192,000. The average rent for villas is between AED 336,000 (three-bedroom) and AED 519,000 (five-bedroom).

Rental contracts are on the rise, leading with International City

Dubai’s rental sector continues to show growth momentum with a 10.4% YoY increase in rental agreements. Leading from the front is International City, with over 14,000 contracts granted in the last 12 months, followed by Jebel Ali First (13,194), Jumeirah Village Circle (11,489), Business Bay (10,300) and Dubai Marina (8,724). Overseas professionals and families prefer most of these areas for their multicultural openness, access to world-class amenities, stable rents and global appeal.