Buyers continue to see Dubai as a prime destination for capital growth and long-term investment, driven by the city’s expansion, the rise of new businesses, and its appeal as both a tourist and residential hub.
Main Takeaways;
- Villa and townhouse prices surged 92% over three years, with a 35% increase in the last year.
- Dubai Land Department recorded AED 54 billion in sales in May, up 11% from April.
- Secondary market sales value rose 68% year-on-year; resale prices up 32%.
- Dubai real estate market saw $6.25 billion in transactions last week, including a $45 million Jumeirah apartment.
According to the Dubai Real Estate Market Report for May 2025, the off-plan sales sector maintained strong investor confidence, with a 13% month-on-month increase in average selling prices and a 20% year-on-year rise.
The Dubai Land Department recorded AED 54 billion (USD 14.7 billion) in real estate sales transactions across the city in May, marking an 11% increase from the previous month.
Villa and townhouse prices have surged by 92% since May 2022, rising from AED 3,475,523 (USD 946,860) to AED 6,682,023 (USD 1,821,400) over the span of three years. These properties saw a 35% price increase in the past year alone across villa and townhouse communities, according to data from the Dubai Land Department.
“Dubai’s real estate market isn’t just growing – it’s redefining investment standards, especially for villas and townhouses. Imagine nearly doubling your investment in just three years – that’s the reality for villa and townhouse owners in Dubai,” Lewis Allsopp, Chairman of Allsopp & Allsopp, stated.
He added that “The continued shortage of high-quality homes—particularly ready and upgraded villas—is driving this growth. Buyers are seeking spacious properties within established communities and move-in-ready homes, which is exactly what communities like Arabian Ranches, Jumeirah Golf Estates, and Victory Heights offer.”
The city’s secondary real estate market showed strong performance last month, with total sales value rising by 68% year-on-year and the average resale home price increasing by 32%. The volume of secondary market transactions also grew by 28% year-on-year, indicating a trend toward homeownership among expatriates living in the city.
The real estate sector maintained its confidence, with a 13% month-on-month increase in average selling prices and a 20% rise year-on-year. Buyers continue to view Dubai as a destination for capital appreciation and long-term investment, driven by the city’s growth, new business opportunities, and its appeal for both tourism and residential living.
The Dubai Land Department reported a monthly decline in renewed rental contracts—down 19% in volume and 17% in value—while new leases strengthened, with a 15% increase in volume and a 9% rise in value month-on-month. This suggests that tenants are exploring suburban areas in response to continued rent hikes in prime locations.
Established, older neighborhoods are experiencing renewed interest, especially in well-renovated homes. Sellers are recognizing the potential in refurbishing older properties, as these modernized homes within their communities are now commanding higher prices.
Allsopp continued: “We are now seeing more sellers upgrading and listing their homes as demand grows for larger, newly renovated properties. Many of Dubai’s older homes offer unmatched space, and buyers are choosing modern, upgraded homes rather than investing time and effort into renovations themselves.”
The data reflects the investment value of Dubai real estate market, particularly in the villa and multi-storey home segment. As Dubai continues to attract high-net-worth individuals and long-term residents, demand remains strong for homes that offer space, lifestyle, and move-in readiness.
Investor confidence in long-term growth is evident, especially with Dubai real estate market recording $6.25 billion (USD) in transactions last week, including a $45 million (USD) apartment in Jumeirah.
