Dubai Real Estate Boom: Iconic Views & High Demand in 2025
Dubai real estate market continued to witness unprecedented growth, smashing records with Dh66.8 billion in sales in May 2025, a 49.9 per cent surge from the previous year, according to fäm Properties.
This blockbuster performance, propelled by strong demand and global investor confidence, underscores Dubai’s status as a magnet for wealth and a destination of stability in a volatile world. Despite whispers of a potential price correction, the market’s fundamentals remain rock-solid, with an undersupply of office space and a steady influx of high-net-worth individuals driving sustained growth.
The May figures, reported by DXBinteract, reveal 18,693 transactions, making it the second-highest month for sales volume on record. This marks a dramatic climb from prior years: Dh2.3 billion from 1,400 transactions in 2020, Dh11.1 billion from 4,400 in 2021, Dh18.3 billion from 6,600 in 2022, Dh33.6 billion from 11,600 in 2023, and Dh46.4 billion from 17,600 in 2024.
Last month’s crown jewel was a luxury villa on Palm Jumeirah, sold for Dh300 million ($81.7 million), alongside a Jumeirah Residences Asora Bay apartment fetching Dh164 million ($44.7 million). High-value properties shone, with 14 per cent of sales exceeding Dh5 million ($1.4 million), while 30 per cent fell in the Dh1-2 million ($272,000-545,000) range and 26 per cent below Dh1 million ($272,000).
Firas Al Msaddi, dismissed concerns raised by a Fitch Ratings forecast of a 15 per cent residential price correction, emphasising market maturity over weakness. “A slowdown in growth isn’t a correction,” he said.
“Dubai’s demand base is strong, and absorption will catch up.” Approximately 363,000 residential units are slated for delivery over the next five years, but only 12,000 are near completion (80-99 per cent progress), with 270,000 units at early stages (0-20 per cent). Completed project deliveries in 2024 dropped 23 per cent from 2023, dispelling fears of oversupply.
However, localised pressure may emerge in areas like Jumeirah Village Circle, expecting 20,000 units in the coming years, potentially causing temporary price adjustments.
In contrast, Dubai’s office market faces a stark undersupply. “Quality commercial space is extremely limited, with strong demand and minimal new inventory in prime business zones,” Al Msaddi noted. This scarcity is driving value appreciation, with no price correction in sight. Developer first sales dominated, accounting for 66 per cent of transaction volume and 67 per cent of value, far outpacing resales.
DXBinteract data shows Dubai gained 212 per cent more millionaires over the past decade, while London lost 45 per cent. “Dubai is a secure investment environment where wealth is preserved and grown,” Al Msaddi said.
Property Finder data underscores this, with the US leading international search traffic, followed by the UK and India, signaling a shift in global interest. Despite challenges like inflation and geopolitical volatility, investor confidence remains unshaken, driven by Dubai’s lifestyle allure and economic stability.
