Dubai’s residential real estate market continued to show steady performance in May 2026, recording an annual price increase of 2.5%. The growth was supported by sustained demand for residential units, particularly villas and luxury homes in prime locations across the emirate.

According to a recent report by global research firm ValuStrat, several areas helped drive the market’s gains during the month. Jumeirah Islands led the villa segment in terms of annual growth, while the Dubai International Financial Centre topped the list of the best-performing areas for apartments.

Villas Continue to Outperform with 5% Annual Growth

Villas in Dubai continued to deliver stronger performance compared with other residential property types, with capital values rising by 5% year on year in May.

Jumeirah Islands ranked first among the best-performing villa communities, recording annual growth of 21.1%. It was followed by The Meadows, where prices increased by 12.9%, while Emirates Hills came next with growth of 12.6%. The Villa also recorded an annual rise of 9.3%, while Tilal Al Ghaf posted growth of 7.9%.

This performance reflects the continued preference among many buyers and investors for spacious homes in established residential communities. Demand remains particularly strong in areas that offer privacy, larger living spaces and a high quality of life.

The report also noted that average values in Dubai’s older freehold villa communities are now 191% higher than post-pandemic levels. They are also 78% above the previous market peak recorded in 2014, underlining the strength of this segment over the past few years.

DIFC Leads Apartment Price Growth

In the apartment market, several areas recorded notable annual gains in May. The Dubai International Financial Centre led the segment, with prices rising by 10.3% year on year. This growth was supported by the area’s central location, its proximity to major business districts and its appeal to buyers looking for luxury apartments in a well-connected part of the city.

Remraam followed in second place with annual growth of 9.4%, supported by its residential appeal and relative affordability for a broad range of buyers. Dubai Silicon Oasis recorded an increase of 8.2%, benefiting from its location and the development of its residential and service infrastructure. Dubai Sports City also posted annual growth of 7.7%, while Al Quoz Fourth rose by 7.1%, keeping both areas among the better-performing apartment markets in Dubai.

The report also pointed out that International City phases two and three recorded a limited monthly gain of 0.4%, while Al Quoz Fourth rose by 0.1% on a monthly basis. These were the only two areas to register monthly gains in this category.

Although prices of older freehold apartments remain 7% below the market peak of 2014, they are still 71% higher than post-pandemic levels, showing a clear recovery in residential values over recent years.

16 Luxury Deals Above AED 30 Million

Ready luxury properties continued to play an important role in Dubai’s real estate activity during May. The market recorded 16 completed transactions worth more than AED 30 million each, including 11 deals that exceeded AED 50 million.

These high-value sales were concentrated in some of Dubai’s most prestigious locations, including Palm Jumeirah, Dubai Hills Estate, Emirates Hills, District One, Jumeirah Bay Island and the Dubai International Financial Centre.

The continued activity in this segment highlights ongoing interest from high-net-worth buyers in Dubai’s ready luxury homes, especially in areas that combine prime locations, limited supply, quality design and integrated services.

Leading Developers by Sales in May

In terms of total sales, Azizi Developments topped the list of developers in May with a share of 17.8%. It was followed by Binghatti with 8.9%, while Emaar came next with 7.5%.

Damac accounted for 6.4% of total sales, followed by Reportage with 5.5% and Ellington with 3.7%. This distribution reflects continued diversity in buyer demand across projects offered by different developers in Dubai’s active property market.

Jumeirah Islands Tops Villa Growth in Dubai

Jumeirah Islands led the villa market in Dubai during May 2026, with annual price growth of 21.1%, reflecting strong demand for villas in upscale residential communities with attractive locations. The Meadows followed with growth of 12.9%, supported by its appeal among families looking for a stable residential environment and spacious homes.

Emirates Hills also maintained its strong position in the luxury villa market, recording annual growth of 12.6%. The area continues to benefit from its reputation as one of Dubai’s most prestigious residential communities. The Villa recorded growth of 9.3%, while villa prices in Tilal Al Ghaf increased by 7.9%, confirming the continued strength of the villa segment across the emirate.

DIFC Leads Apartment Growth

Within the apartment segment, the Dubai International Financial Centre ranked first among the best-performing areas in May 2026, after recording annual price growth of 10.3%. This performance reflects sustained demand for apartments in central locations close to business hubs and premium services, particularly among investors and professionals seeking well-connected addresses in Dubai.

Remraam came in second with annual growth of 9.4%, supported by its residential appeal and pricing that suits a wide range of buyers. Dubai Silicon Oasis recorded growth of 8.2%, helped by its location and expanding residential and service facilities. Dubai Sports City posted annual growth of 7.7%, while Al Quoz Fourth increased by 7.1%, keeping both areas among Dubai’s stronger apartment performers during the month.

Dubai’s Residential Market Maintains Its Appeal

The May 2026 figures show that Dubai’s residential property market continues to move on a stable growth path, with villas clearly outperforming and apartments improving in several key areas.