Dubai’s residential real estate market experienced significant growth in May 2025, with both sales and leasing activity posting double-digit increases compared to the previous month, according to Betterhomes’ latest report.
Key rental areas saw growth, with Bur Dubai experiencing a 7.5% increase in rents and Damac Hills 2 recording a 4% rise. Betterhomes reported a 10% increase in tenant leads, and average annual rents stood at Dhs141,250 for apartments, Dhs198,000 for townhouses, and Dhs405,000 for villas. One-to-four cheque payments continued to be the most common rental term.
Leasing activity also increased by 15.3% in May, with 33,917 leases signed. New rental contracts accounted for 42% of all leasing activity, up from 34% in April. This shift suggests a rise in new tenants entering the market.
Sales transactions surge
The residential sales market saw a notable 15.1% increase in transactions, reaching 17,504 in May. The total sales value rose by 18% to Dhs54.48 billion, while the average price per square foot climbed 4.5% to Dhs1,808. Off-plan properties dominated the market with 57% of the sales, while the secondary market share grew to 43%, indicating strong demand for ready properties.
The report also highlighted a near-even split between cash and mortgage buyers, at 48% and 52% respectively. Investors accounted for 64% of the purchases, demonstrating continued confidence in the city’s real estate market. Popular areas included Dubai Hills Estate, The Springs, and Jumeirah Village Triangle.
Emaar led as the top developer, generating Dhs3.76 billion from off-plan sales and Dhs10.49 billion from title deed transactions.
Market outlook remains positive
Louis Harding, CEO of Betterhomes, commented on the market’s resilience, saying, “Dubai’s property market is demonstrating a remarkable level of depth and resilience. This isn’t just short-term momentum. It reflects long-term confidence in the city’s economic direction, quality of life, and global appeal. We’re seeing demand from both seasoned investors and new residents who see Dubai as a place to build their future. The fundamentals are strong, and the appetite for quality homes, both to own and to rent, continues to grow.”
tanvir@dubainewsweek.com
