Here’s how much Dubai’s property market cooled in May — and what it means

Total real estate transactions reached Dhs40.63bn in May 2026, down 37.5 per cent from Dhs65.03bn in April and 49.1 per cent below the Dhs80.72bn recorded in May 2025. The number of transactions also declined to 12,879, compared with 17,792 in April.

At first glance, the figures point to a clear slowdown. Yet a closer look suggests Dubai’s market is not simply losing momentum; it is becoming more selective.

Activity in May was almost evenly split between off-plan property and land transactions, each accounting for just over 40 per cent of total transaction value. Off-plan sales reached Dhs16.35bn, representing 40.2 per cent of the market, while land deals totalled Dhs16.34bn, also accounting for 40.2 per cent. Ready property transactions stood at Dhs7.95bn, or 19.5 per cent of the total.

The distribution of activity across Dubai’s leading communities further highlights where demand remains concentrated. In the off-plan segment, Business Bay led the market with Dhs2.42bn in transactions, followed by Dubai Islands at Dhs1.41bn and Dubai South at Dhs1.29bn.

In the ready market, demand remained focused on Dubai’s mature and premium residential districts. Burj Khalifa topped the rankings with Dhs713.9m in transaction value, followed closely by Business Bay at Dhs656.3m and Palm Jumeirah at Dhs586.3m. Jumeirah Village Circle (JVC), Dubai Marina and Jumeirah Lake Towers (JLT) also recorded strong activity, underscoring the resilience of established communities that continue to attract both investors and end-users.

The month’s highest-value transactions reinforce this trend. The largest deal recorded was a land sale in Jumeirah Bay worth Dhs280m, underscoring the continued appetite for prime development opportunities.

In the off-plan segment, the highest-value apartment transaction was a Dhs112.6m unit at Solaya in Jumeirah First, while the top villa sale reached Dhs41.1m at Karl Lagerfeld Villas by Taraf in Wadi Al Safa 3.

In the ready market, the highest apartment transaction was a Dhs50.3m sale at Serenia Residences on Palm Jumeirah, while the top villa transaction reached Dhs60m at Club Villas on Palm Jumeirah.

Rather than reflecting broad-based demand across the market, these transactions highlight how capital is increasingly concentrated in ultra-prime assets, strategic land acquisitions and premium development-led opportunities.

This composition is important. It shows that investor and developer confidence remains active, but capital is increasingly concentrated in development-led opportunities rather than broad secondary-market turnover.

In other words, the market is no longer being lifted equally across all segments. It is being driven by specific pockets of demand, particularly land, future supply and income-generating development potential.