Allsopp & Allsopp Market Update: Villa-Led Growth Drives Continued Momentum in May

Unlike DLD transaction data - which captures deals at the point of transfer and therefore reflects sentiment from weeks prior - Allsopp & Allsopp's figures represent what is happening on the ground right now. And the picture is one of continued momentum. May was a strong month for the sales division, with transaction volume up significantly on April - villas and townhouses leading the charge with a 124% increase month-on-month, and apartments up 27%. Average sales price rose 12% month-on-month, and sits 8% ahead of May 2025, confirming that pricing has continued to move in the right direction even through a period of broader market adjustment.

The villa and townhouse segment was the standout story of the month. In value terms, villas and townhouses accounted for the majority of total sales value despite representing an equal share of volume with apartments - a reflection of the premium price points that continue to define this segment. The top transaction of the month was a villa in Jumeirah Golf Estates at AED 26.57 million, with further notable sales including a villa in Arabian Ranches at AED 18.25 million and another in Jebel Ali at AED 16.9 million - the latter within Lunaya Terraces, a recently announced off-plan development - underscoring continued appetite at the top end of the market.

Beyond completed transactions, the recovery data tells an important story. The baseline used throughout this section is the average weekly activity recorded in January and February 2026 - before the onset of regional conflict - and serves as the clearest reference point for what normal, healthy trading conditions look like for the business. When measured against the Eid-adjusted version of that baseline - which strips out the week of DLD closure at the end of May - sales viewings were up 24% and listings up 30%, both comfortably ahead of what a normal trading month would deliver. Applicants, measured month-on-month, were up 27.4% - and the quality of that demand is also shifting. We are seeing stronger buyer intent across the board, with fewer speculative or tourist-driven enquiries and more committed buyers actively progressing towards a decision. The applicant pool is replenishing behind those transacting, which is a healthy sign for the pipeline ahead.

On a raw comparison against the January/February baseline - before the Eid adjustment is applied - viewings and listings sit marginally below pre-conflict levels. That gap is accounted for by the lost Eid week, during which the Land Department was closed and trading activity was materially reduced. The weeks that were actively trading performed strongly, and once that period is normalised out, the underlying trajectory is clearly positive.

Buyer nationality data shifted slightly in May, with British buyers retaining the top position at 18%, followed by Indian buyers at 9%, then Australian at 4%, then American and Lebanese buyers each at 3% - a reminder of the breadth of international demand that continues to underpin the market. Of all Allsopp & Allsopp sales transactions in May, 57% were completed using mortgage finance and 43% in cash - a split that has remained broadly consistent throughout 2026.

The sustained level of financed buyers points to a committed, creditworthy buyer pool transacting with long-term intent. Cash buyers at 43% reflect Dubai's continued appeal to high-net-worth international purchasers for whom liquidity is not a constraint.

A closer look at where transactions are sitting by price point adds further colour to the recovery story. The AED 3M-5M segment doubled in transaction volume compared to April, while the AED 5M-10M bracket was up over 180% month-on-month. These are not entry-level buyers testing the water - this is mid-to-upper market confidence returning in a meaningful way, with buyers who had been sitting on the sidelines through the uncertainty of March and April now actively committing at higher price points.