RAK Market Intelligence — May 2026

May was the quietest month in the series. The sales price index eased just 0.17%, from 331.84 to 331.27, the smallest monthly decline of the year. The rent index fell 1.31%, from 141.29 to 139.44, moderating sharply from April’s 3.70% drop.

Year-on-year price growth continued to compress, to 25.63% from 32.04%, as the strong mid-2025 base washes through the comparison. Gross yield held broadly flat at 2.80%, down two basis points on April.

Neither the ECB nor the BoE met in May; the cycle placed decisions on 30 April and, for the ECB, 11 June. Policy rates therefore stood unchanged at 2.00% and 3.75% through the month. Foreign exchange reversed April’s move, with sterling and the euro both softening against the pegged dirham (GBP/AED −1.03%, EUR/AED −0.69%), marginally improving entry pricing for European buyers.

The slowing pace of decline is the more constructive reading, but it is equally consistent with consolidation before further softening. Two data points do not resolve the question. What May establishes is narrow but real: April’s rent drop did not accelerate, and the price index has now moved less than half a percent across two consecutive months.