The Current Reality of Sellers and Buyers in the Dubai Real Estate Market (May-2026)
I took a deep dive into the latest Dubai Land Department transaction data as of May 2026 to see what the numbers are telling us about the current state of Dubai's real estate market.
Here are a few interesting figures and observations that I thought would be worth sharing with the community.
Sellers Are Willing to Wait Rather Than Discount
ExpandChart showing transaction volumes dynamics for last 2 years ending in May 2026
Transactions data confirms overall feelings that the Dubai Real Estate Market is experiencing a slowdown. A sharp decline in the number of transactions in May: 9,500 vs 17,600 in May 2025 (-46%), while median prices are staying flat versus last year.
May was affected the most in terms of transaction volume decline. In March 2026 and April 2026, the drop versus last year was lower at -10% and -24% respectively.
What is surprising is that prices are still holding at roughly the same level as last year. This shows that sellers are more or less willing to wait for the market to recover rather than sell with significant discounts.
Buyers Are Focusing on Smaller Investments
ExpandTable showing transaction volume breakdown in May 2026 by number of bedrooms
The number of Studio transactions dropped by only -11% in May compared to last year, while for properties with 1+ bedrooms the decline was much sharper, exceeding -40% in most cases.
This indicates that the current Dubai Real Estate market is being driven primarily by lower-budget buyers who are not willing to risk larger amounts of capital in the current environment.
It is also interesting to see that Studio transactions were supported by strong demand for off-plan projects (+10% vs last year), while transactions for existing (secondary market) Studios declined significantly (-57% vs last year).
ExpandTable showing transaction volume breakdown of Studios in May 2026 by ready / off-plan transactions
This suggests that buyers are still willing to invest, but are increasingly focused on smaller ticket sizes and are attracted by developer payment plans rather than committing large upfront sums to ready properties.
Low-Price Communities Dominate the Top 10
Low-price communities dominate the top 10 communities by number of transactions in May 2026.
ExpandTable showing transaction volume breakdown in May 2026 by communities
This further supports the thesis that buyers are increasingly focusing on lower-priced communities such as Dubai Investment Park and International City, where the price per sqft is still around AED 1,000.
Conclusion
Sellers are not willing to significantly reduce asking prices, especially for 1+ bedroom properties in well-established communities. At the same time, buyers are becoming increasingly price-sensitive and are focusing on lower-priced properties and communities, particularly where flexible payment plans are available.