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My nephew is that age and we're always getting it wrong thinking it's complicated, but honestly a 5-year-old just wants pretty simple stuff. What works well is thinking about what he already likes to do, like if he's into playing outside, building things, drawing, listening to stories. Usually at that age they're getting past that baby toy thing and want stuff that makes them more independent, you know? So instead of racking your brain over something expensive and fancy, you can focus on things that bring real fun.
Some options that usually work: drawing or painting kit (thick colored pencils, chalk pastels, really big notebook), building blocks like Lego Duplo which is safer for that age group, a ball to play with in the backyard or park, picture books with stories (like those ones with flaps you can lift), a small bike if the family is into that kind of activity. Skateboard can be cool too if he's got the coordination already, or even a scooter which they pick up fast. Another idea that works is a simple board game to play with him, because at his age we're really wanting quality time together anyway.
The biggest thing really is not trying to impress him with something super elaborate or expensive. A kid that age has fun with very little, and what matters is being able to play, explore and move around. If you're unsure what he specifically likes, just ask his parents straight up, because in their day-to-day you figure out quick what's grabbing his attention. A gift he actually plays with and uses is worth way more than some expensive toy that ends up sitting around after a week.
The experience I've had at home is that kids that age absolutely love things that let them make a mess without feeling guilty - like painting kits, modeling clay, or even a small gardening set with tools sized for them. The trick is picking something he can use on his own or with minimal help, because at that age the real thrill is independence, not the gift itself. If you're not sure what he likes, a voucher to go pick something out together at a toy shop or even a gift card for an activity (movies, amusement park) usually works out - that way he gets to be part of the choice and ends up more excited about it.
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