Dubai’s residential real estate market has demonstrated significant activity as of 2026, with a remarkable total of 66,900 sales transactions logged in the first five months of the year. Insights from property consultancy Cavendish Maxwell reveal that approximately 74% of these transactions are linked to off-plan developments, indicating a persistent interest in new projects despite fluctuations in the broader market landscape.

Transaction Value Trends

In monetary terms, the total value of residential property transactions throughout January to May 2026 surpassed AED196.2 billion (equivalent to $53.4 billion). When compared to the same timeframe in 2025, which recorded AED217.8 billion ($59.3 billion), there is a noticeable drop. This decline highlights a general easing in both off-plan and completed property transactions as market activity modifies, particularly during May, which saw diminished interest across both segments.

Cavendish Maxwell noted that May 2026 registered about 9,500 residential sales, a stark contrast to the 17,600 transactions recorded in May 2025. This marks a decline of 27% when compared to April 2026’s figures. The cumulative value of properties sold in May totaled AED22 billion ($6 billion), significantly lower than the AED54.8 billion ($14.9 billion) noted in the corresponding month of the previous year. Notably, the Eid Al Adha holiday period contributed to an estimated 3,000 fewer transactions during May, further impacting the overall statistics.

Current Market Dynamics

Ronan Arthur, the Director and Head of Residential Valuation at Cavendish Maxwell, expressed that off-plan sales exhibited resilience in the early months of 2026. However, May marked an evident decline in both sales volumes and transaction values, especially in the ready property segment that witnessed marked slowdowns since March.

This recent data suggests that buyers are becoming increasingly selective in their purchasing strategies amidst uncertain global conditions. Although the activity levels remain robust when viewed through a historical lens, the recent months indicate a moderating pace relative to the rapid growth experienced in previous years.

Despite the downturn in May, the off-plan sector continues to dominate, accounting for about 74% of all residential transactions between January and May 2026. This trend underscores the ongoing attraction of new property developments to both investors and potential homeowners.

Ultimately, while Dubai’s residential real estate landscape remains vibrant by historical measures, the momentum of transaction growth has begun to plateau. The current figures not only reflect the resilience of off-plan properties but also signal a market that is adjusting to new economic realities.