Dubai Real Estate Market Report — May, 2026

Dubai Real Estate Market Report – May 2026

Dubai's real estate market processed 10,279 transactions worth AED 28.91 billion across every property type in May 2026, at an overall median of AED 1,654/sqft. Once narrowed to the apartment, villa and commercial segments, the year-on-year comparison turns sharply negative: volume fell 45% to 10,143 deals and value dropped 56% to AED 24.66 billion.

Behind that headline contraction lies a more nuanced split. Deal counts declined in every category, yet pricing moved in different directions — apartment rates per square foot softened 5%, while villa and commercial rates both reached their strongest May level across the 13-year series. Substantially fewer deals closed this month, but the pricing story was far from a straightforward slide.

Headline figures

Year-on-year performance by category

Apartments accounted for most of the aggregate weakness. The segment posted 8,770 sales, down 37% year on year — 5,237 fewer transactions than twelve months earlier, and the softest May volume since 2022. Value fell even further, down 51% to AED 14.55 billion, as the median price eased 5% to AED 1,644/sqft, its lowest May reading since 2023. The typical apartment ticket dropped 16% to AED 1,075,200. Despite the retreat, apartment pricing still sits 36% above its 2014 base.

Villas present an odder pattern, where it is activity, not price, that collapsed. Volume was more than halved, down 73% to just 1,038 deals — some 2,793 fewer than a year earlier and the softest May since 2020 — with value down 72% to AED 7.19 billion. Pricing nonetheless firmed against that backdrop: the median climbed 7% to AED 1,615/sqft, the strongest May price per square foot in the 13-year series, while the median ticket also rose 7% to AED 3,814,000. Villa pricing now stands 138% above 2014.

Commercial showed the widest divergence of the three. Volume dipped 24% to 335 deals — 105 fewer than the previous May and the lowest May count since 2022 — yet value almost doubled, up 94% to AED 2.93 billion. Pricing explains it all: the median leapt 135% to AED 4,063/sqft, the strongest May rate in the 13-year series, and the median ticket climbed 77% to AED 3,080,850. Having moved 288% above 2014, commercial per-square-foot pricing has drifted furthest from its base of any segment.

Every category, including plots and buildings

Outside the three core segments, plots quietly punched above their weight. Just 132 transactions produced AED 4.14 billion in value — more than the entire commercial segment — at a median of AED 702/sqft and a median ticket of AED 6,250,000. Building sales barely registered by comparison, with only 4 deals totalling AED 102.23 million.

Primary versus resale

Off-plan supply kept leading the way. Primary sales made up 74% of apartment, villa and commercial volume — 7,532 deals worth AED 17.14 billion, equal to 70% of value. Resale accounted for the remaining 26% of volume (2,611 deals) yet a larger 30% share of value at AED 7.52 billion, the gap reflecting higher average pricing on secondary-market deals.

Where the activity was

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). Measured by deal count, the master-planned communities dominated: Dubai South topped the table with 1,353 transactions, 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 placing near the top on both measures. Standout deals at the top end included 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 slowed, though rents stayed firm or rose upon renewal. New apartment contracts fell 20.34% to 9,232, with the median new rent unchanged at AED 70,000, while 12,043 apartment renewals (down 12.83%) saw the median climb 5.71% to AED 60,000. Villa leasing was quieter still — 1,486 new contracts (down 6.31%) at a median AED 175,000, down 5.41%, against 1,478 renewals (down 12.23%) whose median rose 8.50% to AED 162,750. Commercial suffered the sharpest drop in new contracts, down 38.10% to 1,610, yet its 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 climbed even as contract counts fell.

Supply

Supply leaned 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 cleared stock faster than it generated fresh 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 figures and the category table draw on the complete data set, Plot and Building included. The primary/resale split, area rankings and year-on-year comparisons, by contrast, cover only Apartment, Villa and Commercial, so those numbers will read smaller than the headline and should not be summed with it.

Rounding. Headline totals represent the authoritative rounded figures. Since category-level numbers are rounded independently, they may not sum precisely to those totals.

Definitions. All prices cited are medians, not averages. Year-on-year figures compare against the equivalent period a year prior. Monetary amounts are in AED, with areas expressed in square feet.