Off-plan remained the main driver of activity, accounting for 68% of total transactions. Off-plan volumes rose 20% year-on-year, while off-plan transaction value increased 35%. Secondary transactions fell 19% year-on-year, showing greater pricing sensitivity in the ready market.
“Given the regional developments in March, some moderation in decision-making was expected,”| said Louis Harding, CEO of betterhomes. “What matters is that the underlying data still points to a resilient market. Transactions were up 4% year-on-year, while total value increased 21% to Dh139.2 billion. Activity has become more measured, but capital continues to move, which points to a market becoming more disciplined rather than losing momentum.”
Villas and prime homes hold up
Buyer behaviour is changing by property type. Enquiries declined 18% year-on-year in the first quarter, but demand moved towards larger and higher-value homes. Villa and townhouse enquiries rose 15%, while apartment enquiries fell 31%.
Investors accounted for 57% of transactions, up from 50% in the first quarter of 2025.
The prime segment continued to outperform, with transactions above Dh15 million rising 43% year-on-year to 1,214 deals, supported by an 84% increase in off-plan prime transactions.
Leasing has become more competitive. Enquiries rose 7% year-on-year, but transactions fell 5% year-on-year and 26% quarter-on-quarter, as increased supply and more selective tenant behaviour slowed deal conversion. New-let apartment prices across prime communities declined 10% to 20% year-on-year, creating a gap between what existing tenants are paying and what new tenants are negotiating.
April activity rebounds
Dubai’s real estate market showed further resilience in April, recording 13,977 sales transactions worth Dh48 billion, according to fäm Properties.
Sales volume rose 3.5% from March, while total sales value increased 10.7%. Primary sales again dominated, with 10,563 transactions worth Dh35.8 billion, compared with 3,414 resales valued at Dh12.2 billion.
Commercial property delivered the strongest growth, with 561 office and shop transactions worth Dh4 billion, up 33.9% year-on-year and 36.2% month-on-month. Apartment sales rose 6.5% month-on-month to 11,377 transactions worth Dh24.1 billion, while plot sales climbed 34.7% to 237 deals worth Dh6.6 billion.
“Last month’s performance reflects the market’s underlying strength, with steady demand across both residential and commercial segments,” said Firas Al Msaddi, CEO of fäm Properties.
“Despite ongoing geopolitical tensions, Dubai is benefiting from its reputation as a stable, transparent and well-regulated environment for investment. The continued dominance of primary sales also points to long-term confidence in the emirate’s growth and development pipeline.”
Market gets more selective
The UAE residential market is moving into a more balanced phase after a long period of strong growth. Regional and geopolitical uncertainty has become the main barrier to market entry for many buyers, outweighing traditional concerns such as pricing or financing, according to Savills.
Near-term activity is expected to remain more deliberate, with softer transaction volumes and tougher negotiation in some segments. Secondary apartments may face greater pressure, while villas and prime residential assets are expected to remain more resilient.
The market is still attracting buyers, but the easy-money phase has cooled. Sellers with realistic pricing, strong locations and completed or higher-quality assets are likely to remain better placed as buyers take more time before committing.
Nivetha Dayanand is Assistant Business Editor at Gulf News, where she spends her days unpacking money, markets, aviation, and the big shifts shaping life in the Gulf. Before returning to Gulf News, she launched Finance Middle East, complete with a podcast and video series.
Her reporting has taken her from breaking spot news to long-form features and high-profile interviews. Nivetha has interviewed Prince Khaled bin Alwaleed Al Saud, Indian ministers Hardeep Singh Puri and N. Chandrababu Naidu, IMF’s Jihad Azour, and a long list of CEOs, regulators, and founders who are reshaping the region’s economy.
An Erasmus Mundus journalism alum, Nivetha has shared classrooms and newsrooms with journalists from more than 40 countries, which probably explains her weakness for data, context, and a good follow-up question.
When she is away from her keyboard (AFK), you are most likely to find her at the gym with an Eminem playlist, bingeing One Piece, or exploring games on her PS5.