According to ValuStrat data, the Emirate’s house price index fell by 1.9% in April compared to March. This is less than the 5.9% drop in March, but the trend itself indicates a cooling of the market after a long period of rapid growth. Nevertheless, in annualized terms, prices are still 5.3% above last year’s levels.
According to Prian, the luxury real estate market looks particularly contrasting against this background. A study by eXp Realty Dubai shows that in the first quarter of 2026, the premium segment grew by 2.7%, while the housing market as a whole added 2.2%. The main source of demand remains wealthy foreign investors who continue to actively buy real estate in the emirate.
Villas are rising in price the most
Villas are feeling the best. Over the year they rose in price by 8.3%, while apartments almost stopped in growth, adding only 0.5%. Moreover, over the month apartments lost 2.2% in price.
The gap is impressive. Today, the cost of villas in Dubai is almost three times higher than post-pandemic levels and 80% higher than the previous price peak of 2014. Apartments, on the other hand, have yet to return to historic highs and remain around 6% below record highs.
Another market signal is the return of interest in projects under construction. In April, off-plan objects accounted for almost 79% of all transactions, or more than 10 thousand sales. After a weak March, this was one of the most noticeable signs of demand revival.
Experts attribute the growth of activity to a more flexible policy of developers. Developers are increasingly offering buyers installments, deferred payments and discounts, trying to support sales without reducing the announced prices.
The secondary market looks weaker
Sales of ready housing for the year decreased by 43.8% to 2,661 transactions. Buyers increasingly prefer new buildings, where purchase conditions are becoming more attractive.
At the same time in the upper part of the market there are almost no signs of cooling. Only for April in Dubai 16 deals worth more than 30 million dirhams ($8.2 million) were concluded, including four sales more expensive than 50 million ($13.6 million). Palm Jumeirah, Dubai Hills Estate and DIFC continue to attract the greatest interest of super-rich buyers.
The latest data shows that the real estate market in Dubai is no longer growing at the same rate as a year or two ago. But while the mass segment is beginning to feel the effects of the correction, premium real estate is still the main factor of stability, keeping the market from a deep decline.
