Dubai’s real estate market recorded a strong recovery in April, with total transaction value rising 20% month-on-month to AED68.6 billion ($18.7 billion), according to a new market analysis.
The rebound followed a temporary slowdown in late February linked to regional geopolitical uncertainty. Moreover, the report indicated that the earlier correction was largely driven by sentiment rather than underlying market fundamentals.
Total registered transactions reached 18,847 during the month. Additionally, mortgage activity increased 33.5% from March to AED14.52 billion, while cash sales climbed 13.5% to AED48.34 billion.
Off-plan properties remained the primary growth driver, accounting for 70.5% of adjusted market share. Furthermore, off-plan apartment sales reached a 2026 monthly high of AED19.7 billion.
Luxury segment hits record level
The AED10 million-plus segment achieved a record 995 transactions in April, representing 5.9% of total market activity. As a result, high-value developments such as Palm Jebel Ali and Aman Residences continued to attract significant investor interest.
Meanwhile, Dubai’s citywide rental index declined 1.26% month-on-month, marking the first monthly decrease in the current cycle. Consequently, average gross rental yields eased to 6.62%.
However, the secondary market remained under pressure. Resale transaction volumes fell 43% year-on-year, reinforcing a two-speed market in which off-plan sales continued to outperform existing inventory.
Performance varied across communities. Mid-market locations, including Jumeirah Golf Estates Apartments and Dubai South, recorded monthly gains of 5.75% and 2.64%, respectively. In contrast, ultra-prime areas such as Emirates Hills and Jumeirah Bay Island apartments experienced declines of 15.43% and 8.30%.
According to the analysis, the market is entering a more selective phase in which liquidity, infrastructure quality and developer credibility are becoming increasingly important factors for investors.
Ilya Demidov, Managing Director at Elite Merit Real Estate, said: “April’s rebound suggests that Dubai’s real estate market is continuing to stabilise after a short-term correction, with momentum supported by off-plan demand and selective strength across mid-market and prime segments.”
He added: “Early indications for May point to continued stability, with market performance increasingly defined by asset quality, location, and developer pipelines rather than broad-based expansion.”
