Dubai Property Market Sees AED 54 Billion in Sales as Villa Prices Jump 92% Since 2022
The Dubai Land Department (DLD) has reported a total of AED 54 billion in property sales across Dubai during the month of May. This reflects an impressive 11% increase compared to April, highlighting the continued strength and momentum of the city’s property sector, according to a newly released market report.
Villa and townhouse properties have seen remarkable growth, with prices surging by 92% since May 2022. This translates to an increase from AED 3,475,523 to AED 6,682,023 over a span of just three years, as shared by real estate agency Allsopp & Allsopp in an official statement.
DLD data further shows that villa and townhouse communities alone have witnessed a 35% rise in prices over the past year, underlining sustained demand in this segment.
Investor Confidence Strengthens
“The Dubai real estate market is not just growing – it’s redefining investment benchmarks, 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. The undersupply of quality homes, particularly ready and upgraded villas, continues to fuel this growth. Buyers want space, established communities, and turnkey homes they can move into immediately which is exactly what communities like Arabian Ranches, Jumeirah Golf Estates and Victory Heights have,” commented Lewis Allsopp, Chairman of Allsopp & Allsopp.
Dubai’s secondary property market also performed strongly last month. Total resale transaction value saw a 68% year-on-year increase, while average resale home prices rose by 32%.
Transaction volume in the secondary segment climbed by 28% year-on-year, signaling that more expatriates are leaning toward homeownership as they settle in the city long-term.
Off-Plan Sector Remains Robust
The off-plan segment has retained investor trust, recording a 13% month-on-month rise in average sales prices and a 20% year-on-year increase. Buyers continue to see Dubai as a hotspot for capital growth and stable returns, driven by its economic development, influx of new businesses, flourishing tourism, and attractive residential lifestyle.
Meanwhile, DLD data also showed a shift in the rental market. While renewal volumes and values dropped 19% and 17% respectively month-on-month, new rental contracts showed resilience, with a 15% increase in volume and a 9% rise in value.
These trends indicate that tenants are now exploring more affordable, suburban neighborhoods due to rising rental costs in premium areas.
Revitalizing Older Communities
Established neighborhoods are seeing a resurgence in interest, particularly for homes that have been renovated to modern standards. Sellers are starting to recognize the financial potential of upgrading older properties, as these homes now command premium prices within their communities.
“We’re now seeing more sellers upgrade and list their homes as the demand for bigger, newly renovated properties grows,” said Lewis Allsopp. “Many of Dubai’s older homes offer unmatched space, with buyers opting for modernised and renovated homes rather than taking on the time and effort of upgrading themselves.”
A Solid Investment Outlook
The findings underscore the strength of investing in Dubai’s property market—especially in the villa and townhouse category. With Dubai continuing to attract high-net-worth individuals and long-term residents alike, the demand remains robust for spacious, lifestyle-focused, and move-in-ready homes.
As the emirate evolves, its real estate landscape continues to reward those who prioritize quality, space, and long-term investment value.
