Dubai’s real estate market recorded a sharp month-on-month recovery in April, with total registered transaction value rising 20% to AED68.6 billion ($18.7 billion), according to a new analytical report published by Elite Merit Real Estate.

The rebound marks the first decisive recovery following a temporary slowdown in late February linked to broader regional geopolitical uncertainty.

According to the report, April’s performance indicates that the correction was primarily sentiment-driven rather than structural. Total registered transactions reached 18,847 in April, it stated. 

Mortgage activity increased 33.5% MoM to AED14.52 billion, while cash sales rose 13.5% to AED48.34 billion.

Off-plan activity remained the dominant market driver, accounting for 70.5% of adjusted market share. Off-plan apartment sales alone reached a 2026 monthly high of AED19.7 billion, it added.

Other key findings from the report include:

*The AED 10 million+ luxury segment reached an all-time record of 995 transactions, representing 5.9% of the market, driven by capital rotation into mega-projects such as Palm Jebel Ali and Aman Residences.

*Dubai’s citywide rental index declined 1.26% month-on-month — the first negative monthly movement in the current cycle - compressing average gross rental yields to 6.62%.

*Secondary market liquidity remained under pressure, with resale transaction volumes down 43% year-on-year, reinforcing a two-speed market where off-plan activity continues to significantly outperform resale inventory.

*Community performance varied sharply across the market. Mid-market areas including Jumeirah Golf Estates Apartments (+5.75% MoM) and Dubai South (+2.64% MoM) continued to gain momentum, while ultra-prime locations such as Emirates Hills (-15.43% MoM) and Jumeirah Bay Island apartments (-8.30% MoM) remained in an active price-discovery phase.

According to Elite Merit Real Estate analytics, these findings suggest Dubai’s property market is entering a more selective and segmented phase, where liquidity strength, infrastructure maturity, and developer credibility are becoming increasingly important for both regional and international 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."

"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," added Demidov.-TradeArabia News Service