Dubai’s residential capital values edged lower in May 2026 but at a slower pace than in prior months, according to ValuStrat’s Price Index (VPI), which dipped to 222.1 points.
That represents a monthly decline of 1.2 per cent, a marked improvement on March’s 5.9 per cent contraction and April’s 1.9 per cent drop. Annual growth remained positive at 2.5 per cent.
Villa values eased to 297.3 points, with a monthly fall of 1.4 per cent and an annual gain of 5 per cent. Jumeirah Islands led annual villa capital growth at 21.1 per cent, followed by The Meadows at 12.9 per cent and Emirates Hills at 12.6 per cent.
On the other end, Victory Heights fell 2.5 per cent annually, with Arabian Ranches Phase 2 and International City each down 2.4 per cent. Across older freehold villa communities, values on average stand 191 per cent above post-pandemic levels and 78 per cent above the 2014 market peak.
Apartments told a more cautious story. The apartment VPI fell to 170 points, with a monthly decline of 0.9 per cent and, for the first time in six years, an annual decline of 1.4 per cent. DIFC recorded the strongest yearly gain at 10.3 per cent, with Remraam at 9.4 per cent and Dubai Silicon Oasis at 8.2 per cent. Burj Khalifa saw the steepest annual fall at 13.9 per cent, followed by Jumeirah Beach Residence at 9.9 per cent and Town Square at 5.7 per cent. Older freehold apartment prices remain 71 per cent above post-pandemic levels but sit 7 per cent below the 2014 peak.
Citywide, the weighted average residential value per square foot stood at AED 1,531, with a weighted average capital value of AED 3,408,078. Villa averages came in at AED 2,077 per square foot and AED 13,201,216 in capital value; apartments at AED 1,406 per square foot and AED 1,801,428.
Transaction volumes weakened across the board. Off-plan registrations via Oqood fell 29.3 per cent month-on-month and 41.4 per cent year-on-year, accounting for 77 per cent of all residential sales. Ready home transactions declined 18.5 per cent monthly and 55.1 per cent annually. Ready sales totalled 2,168 transactions; off-plan reached 7,259.
At the top of the market, 16 ready-property transactions exceeded AED 30 million, with 11 priced above AED 50 million. Those deals were concentrated in Palm Jumeirah, Dubai Hills Estate, Emirates Hills, District One, Jumeirah Bay Island, and DIFC.
Among developers, Azizi led off-plan sales with a 17.8 per cent share in May, followed by Binghatti at 8.9 per cent, Emaar at 7.5 per cent, and Damac at 6.4 per cent. The most active off-plan locations by transaction included Azizi Venice at 13.6 per cent, Majan at 11 per cent, and Dubailand Residence Complex at 7.5 per cent. For ready homes, Jumeirah Village Circle captured the largest share at 10 per cent, ahead of International City Phase 2 and 3 at 5.2 per cent and Business Bay at 4.9 per cent.
