AED
May 2026 was the quietest month of the year so far for Dubai property. The market recorded 10,279 sales worth AED 28.91 billion across all property types, down from 14,045 deals and AED 48.24 billion in April.
Across apartments, villas and commercial units, volume fell 45% and value 56% against May 2025. Pricing told a split story: apartment prices slipped year on year after rising in March and April, while villas and commercial units set May records. The Eid Al Adha holiday at the end of the month also trimmed registration days.
May 2026 in numbers
Apartments, villas and commercial units together recorded 10,143 deals worth AED 24.66 billion. Plots added 132 deals worth AED 4.14 billion, more than the entire commercial segment.
Apartments fell 37% to 8,770 transactions, 5,237 fewer than May 2025 and the lowest May since 2022. Value dropped 51% to AED 14.55 billion as the median price eased 5% to AED 1,644/sqft. The typical apartment sold for AED 1.08 million, down 16%, though prices remain 36% above their 2014 level.
Villas saw activity collapse but prices hold. Volume fell 73% to 1,038 deals, the lowest May since 2020, and value fell 72% to AED 7.19 billion. Yet the median rose 7% to AED 1,615/sqft, the strongest May on record, and the median villa sold for AED 3.81 million.
Commercial volume dipped 24% to 335 deals, but value nearly doubled, up 94% to AED 2.93 billion. The median price per square foot jumped 135% to AED 4,063, another May record, reflecting a shift towards larger, higher-quality assets.
Off-plan leads, resale gains ground
Developer sales took 74% of deals in May, 7,532 transactions worth AED 17.14 billion. Resale accounted for 2,611 deals but a larger 30% share of value at AED 7.52 billion, a sign that buyers in the secondary market were paying up for ready homes.
The off-plan premium narrowed sharply. New stock traded at a median of AED 1,680/sqft against AED 1,548/sqft for resale, a gap of about 9%, down from roughly 23% in April.
Launch activity slowed to its lowest level in three months. Just six projects launched 1,667 units, led by Ellington’s Eltiera Views Tower 3 with 890 units. Twelve projects delivered 2,468 units, a launch-to-handover ratio of 0.7, with handovers including Mag 330 in Wadi Al Safa 4, Emaar’s Parkside Views in MBR City and Damac Hills 2’s Verona cluster.
Prices and rents
The all-property median settled at AED 1,654/sqft in May, down from AED 1,837 in April. That drop mostly reflects the mix of deals, as villas and commercial units both posted record May prices while apartments eased.
On the leasing side, contract numbers fell across the board but renewal rents kept climbing. Median apartment renewal rents rose 5.7% to AED 60,000 a year, villa renewals rose 8.5% to AED 162,750 and commercial renewals rose 8.2% to AED 125,000.
New lettings were mixed. The median new apartment rent held at AED 70,000 for a second month, on 9,232 contracts, down 20%. New villa rents slipped 5.4% to AED 175,000. New commercial rents jumped 28% to AED 115,000, even as new commercial contracts fell 38%.
For apartment tenants, the gap between renewing and moving is now about AED 10,000 a year, unchanged from April.
Where the activity was
Business Bay led by value for the second month running at AED 2.70 billion, and Dubai South led by volume for the third month running with 1,353 deals, its highest count of the three months.
By value, Business Bay was followed by 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 volume, Dubai South was followed by Wadi Al Safa 3 (983 deals), Wadi Al Safa 5 (631), Al Barsha South Fourth, home to JVC (549), and Jabal Ali First (540).
Wadi Al Safa 3 and Dubai South ranked near the top on both lists, underlining the pull of master-planned communities in the south and along Emirates Road.
At the top end, a villa on Palm Jumeirah sold for AED 145 million, the biggest deal of the month. The largest apartment sales were AED 112.6 million at Solaya 5 and AED 106 million at Solaya 6, both in Jumeirah First.
Other headlines from May
- AED 1.5 billion economic package. Sheikh Hamdan bin Mohammed approved 33 economic incentives to roll out over three to 12 months. For real estate, Dubai Municipality extended building permit validity, and approvals for Mohammed bin Rashid Housing Establishment construction loans were extended.
- New master community in Dubai South. Dubai South and Majid Al Futtaim agreed to develop a 22 million sq ft mixed-use community near Al Maktoum International Airport, anchored by a major shopping mall.
- More Emirati brokers. DLD launched phase two of its Emirati Real Estate Business Incubator Programme, a six-month course for 25 new participants covering legal, financial, marketing and AI skills.
- Win Your Home in Dubai. Dubai Festivals and Retail Establishment and Dubai Chambers launched a campaign running from 22 May to 30 August, with shoppers entering draws to win selected properties.
The Vetra View
May was the clearest sign yet that Dubai’s market is shifting from a sprint to a steadier pace. Volumes were sharply lower and apartment prices eased year on year, while villa and commercial prices kept setting records. This is a market rebalancing, not retreating.
For buyers: This is the best negotiating window of the year so far. Fewer buyers are competing, apartment prices have softened and the off-plan premium has narrowed to around 9%, so ready apartments in established communities deserve a close look.
For investors: Launches fell to six projects in May, which should ease future supply pressure in the communities seeing the most handovers. Commercial remains the strongest performer on price, and the new Dubai South master community adds weight to the southern corridor story.
For tenants and landlords: Renewal rents rose 5% to 9% while new apartment rents stayed flat, so tenants have more room to shop around than a year ago. Landlords with new handovers should price realistically to avoid long vacancies over the summer months.
Thinking about buying, selling or leasing in Dubai? Speak to the Vetra Real Estate team for a view on your specific community.
