The Dubai real estate market set a new all-time monthly sales record of AED 66.8 billion in May, a 49.9% increase in value on the same month last year.
A market update issued today by fäm Properties reveals that last month’s total of 18,693 transactions also made it the second best-selling month on record in terms of volume.
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% 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.”
He states that just 12,000 units are close to completion (80–99% progress), dispelling any notion of a market-wide oversupply. Additionally, completed project deliveries in 2024 are down 23% 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.”
Meanwhile, 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,” says 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 AED2.3 billion (1,400 transactions) in 2020, AED11.1 billion (4,400) in 2021, AED18.3 billion (6,600) in 2022, AED33.6 billion (11,600) in 2023 and AED46.4 billion (17,600) in 2024.
The most expensive individual property sold last month was a luxury villa at Palm Jumeirah which fetched AED300 million. The most expensive apartment sold during the month went for AED164 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% of its millionaires over the past decade, while Dubai gained 212% during the same period.
“This contrast reflects a global shift in investor confidence,” says 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 AED5 million accounting for 14% of total sales last month, 30% came in the AED1-2 million range, 26% below AED1 million, 18% between AED2-3 million and 12% between AED3-5 million. Overall, first sales from developers far exceeded those of resales – 66% over 34% in terms of volume and 67% over 33% in overall value.
