05/05/2026 03:54 AST
Dubai's real estate market extended its resilience in April, recording Dh48 billion in sales across 13,977 transactions, underscoring sustained investor demand even as early signs of price moderation begin to surface.
Data from fäm Properties shows transaction volumes rose 3.5 per cent month-on-month, while overall deal value climbed 10.7 per cent, pointing to continued strength in higher-value segments despite a more complex regional backdrop.
The performance comes at a time of heightened geopolitical tensions and global economic uncertainty, yet Dubai continues to attract strong capital inflows, supported by its reputation as a safe, transparent and well-regulated investment hub. Analysts say population growth, long-term residency reforms and sustained infrastructure expansion are reinforcing demand fundamentals.
"April's performance reflects the market's underlying strength, with steady demand across both residential and commercial segments," said Firas Al Msaddi, noting that the emirate continues to benefit from its global positioning as a stable destination for investors. He added that the dominance of primary sales highlights long-term confidence in Dubai's development pipeline.
The primary market remained the clear driver of activity, with 10,563 transactions worth Dh35.8 billion, compared with 3,414 resale deals valued at Dh12.2 billion, according to DXBinteract. The continued strength of off-plan sales reflects investor appetite for new projects and expectations of future capital appreciation.
Apartments led the market with 11,377 transactions worth Dh24.1 billion, up 6.5 per cent month-on-month, while plot sales surged 34.7 per cent to Dh6.6 billion, indicating strong interest in land development opportunities. Commercial real estate also posted robust gains, with 561 transactions worth Dh4 billion, rising sharply both year-on-year and from March, signalling renewed business activity.
Average property prices rose 16.1 per cent year-on-year to Dh1,840 per square foot, although recent indicators suggest the pace of appreciation is beginning to ease after a multi-year rally.
Dubai South retained its position as the top-performing area for the second consecutive month, recording 1,171 transactions worth Dh2.7 billion, followed by Jebel Ali First and Al Barsha South Fourth. Dubai Islands emerged as a high-value hotspot, generating Dh2.8 billion in sales, reflecting rising demand for premium waterfront developments.
Luxury transactions continued to capture attention, with the most expensive apartment selling for Dh171 million at Aman Residences in Jumeirah. Other high-end deals included Dh122 million at Baccarat Residences in Downtown Dubai and Dh118 million at Marsa Dubai, while the top villa sale reached Dh76 million at Eden Hills.
The bulk of transactions remained concentrated in the mid-market segment, with properties priced between Dh1 million and Dh2 million accounting for 34.7 per cent of sales. Units below Dh1 million made up 23.3 per cent, highlighting continued demand from first-time buyers and investors targeting rental yields, while properties above Dh5 million accounted for nearly 12 per cent.
Despite the strong sales momentum, the market is showing signs of recalibration. Data from ValuStrat indicates that its residential capital values index declined 3.8 per cent in the first quarter of 2026 to 229.2 points, marking the first quarterly contraction since 2020.
Market experts say the dip reflects a natural adjustment following sharp gains over the past three years rather than a downturn, as increased supply and shifting investor preferences begin to temper price growth.
"The moderation in prices is a healthy development and points to a more sustainable growth trajectory," a Dubai-based analyst said. "Transaction volumes remain strong, liquidity is robust, and the fundamentals underpinning demand - from population growth to foreign investment - are firmly intact."
With Dubai's population having crossed the four million mark and new project launches continuing across emerging districts, the outlook for the sector remains broadly positive. Industry stakeholders expect the market to maintain steady momentum through 2026, supported by strategic initiatives such as the Dubai Economic Agenda D33 and the emirate's expanding role as a global hub for business and investment.
Khaleej Times
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