Dubai Real Estate Market Report

May, 2026 Analysis

Fateh Almsaddi, The Founder of DXBinteract

27, Jul 2026

Key takeaways

  • Headline activity contracted sharply: apartment, villa and commercial volume fell 45% year on year to 10,143 deals and value dropped 56% to AED 24.66 billion.
  • Apartments drove the decline, with 5,237 fewer sales (-37%) and value down 51% to AED 14.55 billion — the lowest May apartment volume since 2022.
  • Prices diverged from volume: villa and commercial per-sqft rates both reached their highest May level in the 13-year series, even as their transaction counts collapsed.
  • Commercial value nearly doubled, up 94% to AED 2.93 billion, on a 135% jump in price per square foot, despite 105 fewer deals.
  • Off-plan led the market at 74% of volume and 70% of value, while resale carried a larger 30% share of value than its 26% of volume.
  • Delivery outpaced launches: 2,468 units completed against 1,667 launched, a net of 801 units.
  • Rental renewals firmed across all three segments even as new-lease and renewal contract counts fell.

Dubai Real Estate Market Report – May 2026

Dubai's property market turned over 10,279 transactions worth AED 28.91 billion across all property types in May 2026, at an overall median of AED 1,654/sqft. Narrowed to the apartment, villa and commercial segments, the annual comparison is stark: volume fell 45% year on year to 10,143 deals and value dropped 56% to AED 24.66 billion.

The headline contraction, though, hides a split beneath it. Transaction counts fell in every category, but price direction diverged sharply — apartment rates per square foot eased 5% while villa and commercial rates each climbed to their highest May level in the 13-year series. Far fewer deals closed this month, yet the pricing picture was anything but a uniform decline.

Headline figures

SegmentTransactionsValueMedian price
All sales10,279AED 28.91 billionAED 1,654/sqft
Primary (off-plan & developer)7,593AED 18.44 billionAED 1,680/sqft
Resale (secondary)2,686AED 10.47 billionAED 1,548/sqft

Year-on-year performance by category

CategoryVolumeYoYValueYoYMedian price/sqftYoY
Apartment8,770-37%AED 14.55 billion-51%AED 1,644/sqft-5%
Villa1,038-73%AED 7.19 billion-72%AED 1,615/sqft+7%
Commercial335-24%AED 2.93 billion+94%AED 4,063/sqft+135%

Apartments did most of the damage to the aggregate. At 8,770 sales the segment was down 37% year on year — 5,237 fewer transactions than a year earlier, and the lowest May volume since 2022. Value fell further, down 51% to AED 14.55 billion, as the median price slipped 5% to AED 1,644/sqft, the lowest May figure since 2023. The median apartment ticket eased 16% to AED 1,075,200. Even after the pullback, apartment rates remain 36% above their 2014 base.

Villas tell a stranger story, where the collapse is one of activity rather than price. Volume more than halved — down 73% to just 1,038 deals, some 2,793 fewer than a year ago and the weakest May since 2020 — and value fell 72% to AED 7.19 billion. Yet pricing firmed against that backdrop: the median rose 7% to AED 1,615/sqft, the highest May price per square foot in the 13-year series, and the median ticket also gained 7% to AED 3,814,000. Villa values now sit 138% above 2014.

Commercial diverged most sharply of all. Volume slipped 24% to 335 deals105 fewer than last May and the lowest May count since 2022 — but value nearly doubled, up 94% to AED 2.93 billion. Price was the whole story: the median jumped 135% to AED 4,063/sqft, the highest May rate in the 13-year series, and the median ticket climbed 77% to AED 3,080,850. At 288% above 2014, commercial per-sqft pricing has travelled further from its base than any other segment.

Every category, including plots and buildings

CategoryTransactionsValueMedian price/sqftMedian price
Apartment8,770AED 14.55 billionAED 1,644/sqftAED 1,075,200
Villa1,038AED 7.19 billionAED 1,615/sqftAED 3,814,000
Plot132AED 4.14 billionAED 702/sqftAED 6,250,000
Commercial335AED 2.93 billionAED 4,063/sqftAED 3,080,850
Building4AED 102.23 millionAED 1,015/sqftAED 864,295

Beyond the three core segments, plots were the quiet heavyweight. Just 132 transactions generated AED 4.14 billion — more value than the entire commercial segment — at a median AED 702/sqft and a median ticket of AED 6,250,000. Building sales were negligible by comparison, with 4 deals totalling AED 102.23 million.

Primary versus resale

The off-plan channel continued to lead. Primary sales accounted for 74% of apartment, villa and commercial volume — 7,532 deals worth AED 17.14 billion, or 70% of value. Resale made up the remaining 26% of volume (2,611 deals) but a larger 30% of value at AED 7.52 billion, the gap reflecting the higher average price of secondary-market transactions.

Where the activity was

#Area by valueValueArea by volumeTransactions
1Business BayAED 2.70 billionDubai South1,353
2Wadi Al Safa 3AED 1.65 billionWadi Al Safa 3983
3Dubai SouthAED 1.49 billionWadi Al Safa 5631
4Dubai IslandsAED 1.42 billionAl Barsha South Fourth549
5Palm JumeirahAED 1.20 billionJabal Ali First540

Business Bay led by value at AED 2.70 billion, ahead of Wadi Al Safa 3 (AED 1.65 billion), Dubai South (AED 1.49 billion), Dubai Islands (AED 1.42 billion) and Palm Jumeirah (AED 1.20 billion). By transaction count the centres of gravity were the master-planned communities: Dubai South topped the table with 1,353 deals, followed by Wadi Al Safa 3 (983), Wadi Al Safa 5 (631), Al Barsha South Fourth (549) and Jabal Ali First (540) — with Wadi Al Safa 3 and Dubai South ranking near the top on both measures. The top end still produced headline tickets, led by a AED 145,000,000 villa on Palm Jumeirah and a AED 112,603,000 apartment at Solaya 5 in Jumeirah First.

Rental market

Leasing activity cooled, but rents held firm or rose on renewal. New apartment contracts fell 20.34% to 9,232, with the median new rent flat at AED 70,000, while the 12,043 apartment renewals (down 12.83%) saw the median rise 5.71% to AED 60,000. Villa leasing was quieter — 1,486 new contracts (down 6.31%) at a median AED 175,000, off 5.41%, against 1,478 renewals (down 12.23%) whose median climbed 8.50% to AED 162,750. Commercial saw the steepest fall in new contracts, down 38.10% to 1,610, yet the median new rent jumped 27.78% to AED 115,000; its 1,978 renewals carried a median of AED 125,000, up 8.23%. Across all three segments, renewal rents rose even as contract counts shrank.

CategoryTypeContractsYoYMedian rentYoYMedian rent/sqftYoY
ApartmentNew9,232-20.34%AED 70,0000%AED 91/sqft-3.19%
ApartmentRenewal12,043-12.83%AED 60,000+5.71%AED 73/sqft+8.96%
VillaNew1,486-6.31%AED 175,000-5.41%AED 72/sqft+1.41%
VillaRenewal1,478-12.23%AED 162,750+8.50%AED 64/sqft+8.47%
CommercialNew1,610-38.10%AED 115,000+27.78%AED 112/sqft+10.89%
CommercialRenewal1,978-16.86%AED 125,000+8.23%AED 108/sqft+8%

Supply

Supply tilted toward completion this month. Developers launched 1,667 units across 6 projects, while 2,468 units were delivered across 12 projects — a launch-to-delivery ratio of 0.7 and a net of 801 more units delivered than launched. The pipeline handed over stock faster than it created new commitments.

Launched

  • Oxford Cove – Al Barsha South Fourth (Iman Developers), 253 units
  • Tresora By Wadan – Al Barsha South Fourth (Wadan), 160 units
  • Eltiera Views - Tower 3 – Al Thanyah Fifth (Ellington), 890 units
  • Sera Gardens By Vision – Me'Aisem First (Vision Developments), 246 units
  • Greenfield 2 By Samana Developers – Warsan Fourth (Samana), 1 units
  • Elanora By Zoya – Saih Shuaib 2 (Zoya), 117 units

Delivered

  • Golf Vista Heights – Al Hebiah Fourth (London Gate), 209 units
  • Parkside Views – Hadaeq Sheikh Mohammed Bin Rashid (Emaar), 389 units
  • Zazen Ivy – Jabal Ali First (Zazen), 73 units
  • Dgm Vision – Al Satwa (Dgm Vision House), 95 units
  • Talia Residences – Jabal Ali First (Deyaar), 161 units
  • Damac Hills (2) - Verona – Madinat Hind 4 (Damac), 384 units
  • 48 Parkside – Al Barsha South 3 (Tabeer), 203 units
  • Mag 330 – Wadi Al Safa 4 (Mag), 679 units
  • Beverly Residence 2 – Al Barsha South Fourth (Hmb Homes), 108 units
  • The Spark By Esnaad – Wadi Al Safa 3 (Esnaad), 50 units
  • Damac Hills - Cavalli Estates – Al Hebiah Third (Damac), 41 units
  • Beach Walk Residences 1 – Dubai Islands (Imtiaz), 76 units

Most expensive sales

Top apartment sales

  1. AED 112,603,000 – Solaya 5, Jumeirah First
  2. AED 106,048,000 – Solaya 6, Jumeirah First
  3. AED 50,300,000 – Serenia Residences Building B, Palm Jumeirah
  4. AED 48,958,000 – Jumeirah Residences Asora Bay, Jumeirah First
  5. AED 43,179,968 – Eden House The Park Building F, Al Wasl

Top villa sales

  1. AED 145,000,000 – Palm Jumeirah
  2. AED 75,000,000 – Emirates Living
  3. AED 72,000,000 – Wadi Al Safa 3
  4. AED 70,300,000 – Ghadeer Al Tair
  5. AED 55,087,500 – Dubai South

Notes on methodology

Scope. Headline totals and the category table cover every property category recorded in the data, including Plot and Building. The primary/resale split, top-area rankings and the year-on-year series cover Apartment, Villa and Commercial only, so those figures are deliberately smaller than the headline and should not be added across sections.

Rounding. Headline totals are the authoritative rounded figures. Category-level breakdowns are rounded independently and may not sum exactly to the headline.

Definitions. Price figures are medians, not averages. Year-on-year compares the period against the same period one year earlier. All values in AED; areas in square feet.

May, 2026 Report – FAQ

  • What happened to Dubai's property market in May 2026?

    Transaction activity fell steeply. The market recorded 10,279 deals worth AED 28.91 billion across all property types; on the apartment, villa and commercial basis, volume was down 45% year on year and value down 56% to AED 24.66 billion.

    #LIST_BADGE#
  • Why did value fall even further than volume?

    Apartments — the largest segment — saw value drop 51% against a 37% fall in volume, and that disproportionate decline, combined with the shift in transaction mix toward higher-priced villa and commercial stock, pulled aggregate value down 56% versus the 45% volume fall.

    #LIST_BADGE#
  • Which segment was responsible for most of the drop?

    Apartments. They lost 5,237 sales year on year, a 37% fall, and value dropped 51% to AED 14.55 billion — the single largest contributor to the market-wide decline and the lowest May apartment volume since 2022.

    #LIST_BADGE#
  • Did property prices actually fall?

    Not uniformly. The apartment median slipped 5% to AED 1,644/sqft, its lowest May level since 2023, but villas rose 7% to AED 1,615/sqft and commercial surged 135% to AED 4,063/sqft — the latter two each the highest May price per square foot in the 13-year series.

    #LIST_BADGE#
  • How did off-plan compare with resale?

    Primary, or off-plan, sales made up 74% of volume and 70% of value — 7,532 deals worth AED 17.14 billion. Resale accounted for 26% of volume but a higher 30% of value at AED 7.52 billion, reflecting the higher average price of secondary-market deals.

    #LIST_BADGE#
  • What is happening with rents?

    New-lease volumes shrank — new apartment contracts fell 20.34% and new commercial contracts 38.10% — but rents on renewal rose across all three segments, including 5.71% for apartments and 8.50% for villas. Sitting tenants generally faced higher renewal rates than a year earlier.

    #LIST_BADGE#
  • Was more supply launched or delivered this month?

    Delivery outpaced launches. Developers launched 1,667 units across 6 projects and delivered 2,468 units across 12 projects, leaving a net 801 more units delivered than launched, a launch-to-delivery ratio of 0.7.

    #LIST_BADGE#