Dubai Real Estate Market Report

Q2, 2026 Analysis

Fateh Almsaddi, The Founder of DXBinteract

29, Jul 2026

Key takeaways

  • Sales cooled sharply year-on-year on the apartment-villa-commercial basis, with volume down 28% and value down 40% to AED 94.17 billion — a correction in throughput rather than in price.
  • Apartments drove the bulk of the decline, shedding 8,788 deals (down 22%) to the lowest Q2 total since 2023, yet their median price held at AED 1,714 per square foot, a 13-year series high.
  • Villas were the hardest hit, with volume collapsing 57% to 4,383 deals, but the median villa still gained 8% per square foot and its median ticket rose 6% to AED 3,850,000.
  • Commercial was the only category to grow: volume up 10% to a post-2014 Q2 high and value up 157%, powered by a 91% jump in price per square foot toward larger, higher-value assets.
  • The primary market still commands the field at 75% of deals and 73% of value, while resale's slightly higher value share hints at a premium on completed stock.
  • Rental renewals outpaced new leases on both count and rent growth across all three segments, and delivered units exceeded launches by a net 2,998, feeding the ready market.

Dubai Real Estate Market Report – Q2 2026

Dubai's property market recorded 38,257 transactions worth AED 110.36 billion in Q2 2026, with the typical deal changing hands at AED 1,715 per square foot. On the apartment, villa and commercial basis that anchors the quarter's year-on-year comparisons, volume fell 28% against Q2 2025 while value dropped 40% to AED 94.17 billion — a pronounced retreat from a year earlier.

Yet the pullback was one of quantity, not price. Value per square foot held or firmed across every category even as deal counts thinned, describing a market that is cooling in throughput while defending the pricing gains of recent years rather than surrendering them.

Headline figures

SegmentTransactionsValueMedian price
All sales38,257AED 110.36 billionAED 1,715/sqft
Primary (off-plan & developer)28,622AED 76.08 billionAED 1,750/sqft
Resale (secondary)9,635AED 34.27 billionAED 1,548/sqft

Year-on-year performance by category

CategoryVolumeYoYValueYoYMedian price/sqftYoY
Apartment31,895-22%AED 56.55 billion-32%AED 1,714/sqft0%
Villa4,383-57%AED 28.38 billion-59%AED 1,629/sqft+8%
Commercial1,374+10%AED 9.24 billion+157%AED 3,329/sqft+91%

Apartments remained the market's backbone at 31,895 deals, but they also drove the overall decline: volume slipped 22% — some 8,788 fewer sales than a year earlier and the lowest Q2 total since 2023 — and value fell 32% to AED 56.55 billion. What did not move was the going rate. The median apartment traded at AED 1,714 per square foot, flat year-on-year but the highest Q2 reading in the 13-year series and 38% above 2014. With the median ticket easing 8% to AED 1,183,000 against unchanged per-foot pricing, buyers appear to have gravitated toward smaller units rather than cheaper ones.

Villas saw the steepest correction of the quarter. Transactions collapsed 57% to 4,3835,895 fewer than Q2 2025 and the thinnest Q2 since 2021 — dragging value down 59% to AED 28.38 billion. Pricing, however, moved the other way: the median villa fetched AED 1,629 per square foot, up 8% year-on-year and 114% above 2014, another series-high for a second quarter, while the median ticket rose 6% to AED 3,850,000. Far fewer villas changed hands, and the ones that did commanded more.

Commercial was the lone grower. Volume rose 10% to 1,374 deals — only 121 more than last year, but enough to mark the highest Q2 since 2014 — and value more than doubled, up 157% to AED 9.24 billion. The pricing shift was the most dramatic in the market: median price per square foot jumped 91% to AED 3,329 (a series high, 218% above 2014), and the median ticket climbed 75% to AED 3,083,344. The scale of those moves on a modest deal count points to a mix skewed toward larger, higher-value assets rather than a broad repricing of the whole segment.

Every category, including plots and buildings

CategoryTransactionsValueMedian price/sqftMedian price
Apartment31,895AED 56.55 billionAED 1,714/sqftAED 1,183,000
Villa4,383AED 28.38 billionAED 1,629/sqftAED 3,850,000
Plot593AED 16.03 billionAED 761/sqftAED 6,942,004
Commercial1,374AED 9.24 billionAED 3,329/sqftAED 3,083,344
Building12AED 159.89 millionAED 1,015/sqftAED 924,771

Beyond the three headline segments, land remained a heavyweight. Just 593 plot transactions generated AED 16.03 billion — the third-largest value pool of any category — at a median ticket of AED 6,942,004, by far the largest deal size in the market, even as plots priced at only AED 761 per square foot on a per-foot basis. Whole-building sales were a niche by comparison, with 12 trades worth AED 159.89 million.

Primary versus resale

The primary, off-plan market continued to dominate, accounting for 75% of deals and 73% of value — 28,339 transactions worth AED 68.46 billion. Resale, or secondary, activity made up the balance at 25% of volume and 27% of value, or 9,313 deals worth AED 25.71 billion. That resale's share of value runs two points ahead of its share of volume signals that the average secondary sale carried a slightly higher price tag than the average new launch — a modest premium on completed, ready stock.

Where the activity was

#Area by valueValueArea by volumeTransactions
1Business BayAED 8.36 billionDubai South5,427
2Dubai SouthAED 6.54 billionJabal Ali First2,579
3Dubai IslandsAED 5.26 billionAl Barsha South Fourth2,143
4Jabal Ali FirstAED 4.02 billionWadi Al Safa 51,967
5Wadi Al Safa 3AED 3.46 billionWadi Al Safa 31,812

By value, Business Bay topped the table at AED 8.36 billion, ahead of Dubai South (AED 6.54 billion), Dubai Islands (AED 5.26 billion), Jabal Ali First (AED 4.02 billion) and Wadi Al Safa 3 (AED 3.46 billion). Volume told a different story: Dubai South ran away with the count at 5,427 transactions, far ahead of runner-up Jabal Ali First (2,579), followed by Al Barsha South Fourth (2,143), Wadi Al Safa 5 (1,967) and Wadi Al Safa 3 (1,812). The contrast between Business Bay's value lead and Dubai South's volume lead captures the divide between premium central districts and high-turnover growth corridors.

Rental market

On the leasing side, renewals are doing the heavy lifting. New apartment leases were essentially flat — 32,245 contracts, barely changed year-on-year, at an unmoved median of AED 70,000 — whereas apartment renewals grew 3.48% to 41,161 contracts and their median rent rose 5.26% to AED 60,000. Villas followed the same pattern, with renewal rents jumping 9.84% to AED 165,000 against a 2.22% dip in new-lease medians to AED 176,000; commercial renewal rents advanced 7% even as new commercial contracts fell 16.16%. Across all three segments, sitting tenants faced steeper increases than the headline new-lease rates suggest — a market rewarding those who stay put over those signing fresh.

CategoryTypeContractsYoYMedian rentYoYMedian rent/sqftYoY
ApartmentNew32,245-0.13%AED 70,0000%AED 91/sqft-3.19%
ApartmentRenewal41,161+3.48%AED 60,000+5.26%AED 73/sqft+8.96%
VillaNew5,061+9.12%AED 176,000-2.22%AED 72/sqft0%
VillaRenewal5,195+5.80%AED 165,000+9.84%AED 63/sqft+6.78%
CommercialNew5,148-16.16%AED 123,690+4.78%AED 122/sqft+4.27%
CommercialRenewal6,984+3.44%AED 120,837+7%AED 107/sqft+7%

Supply

Supply tilted toward completion this quarter: developers delivered 14,503 units across 52 projects while launching 11,505 units across 30 — a launch-to-delivery ratio of 0.8 that left a net of 2,998 more units delivered than launched. With handovers outpacing new introductions, the quarter added more finished, occupiable stock than fresh off-plan supply, a useful counterweight for buyers seeking ready homes in a slower sales market.

Selected launches

  • Omya Residences – Jabal Ali First (Pantheon), 416 units
  • Coventry Residence – Saih Shuaib 2 (Gfs), 163 units
  • Kyomi Residence – Warsan Fourth (Anax), 121 units
  • Arlington Park Ii By Majid – Wadi Al Safa 5 (Majid Development Agency), 129 units
  • Coventry Residence 3 – Saih Shuaib 2 (Gfs), 185 units
  • Arancia Yards By Beyond - Building C – Wadi Al Safa 4 (Beyond), 282 units
  • Oxford Cove – Al Barsha South Fourth (Iman Developers), 253 units
  • Tresora By Wadan – Al Barsha South Fourth (Wadan), 160 units
  • Eltiera Views - Tower 3 – Al Thanyah Fifth (Ellington), 890 units
  • Oasis Tower 2 – Al Hebiah Fourth (Dubai Sports City), 444 units
  • … and 20 further projects

Selected completions

  • Tulip Oasis 10 – Wadi Al Safa 3 (Ame Development), 130 units
  • Serenia Living - Tower 4 – Palm Jumeirah (Palma), 226 units
  • Golf Vista Heights – Al Hebiah Fourth (London Gate), 209 units
  • Marquis Galleria – Al Barsha South 3 (Marquis Circle), 126 units
  • Parkside Views – Hadaeq Sheikh Mohammed Bin Rashid (Emaar), 389 units
  • Vyb – Business Bay (Ginco), 181 units
  • Nas3 – Al Barsha South 3 (Rabdan), 288 units
  • Azizi Central – Jabal Ali First (Azizi), 97 units
  • Zazen Ivy – Jabal Ali First (Zazen), 73 units
  • Arbor View – Al Barsha South 3 (Ellington), 171 units
  • … and 42 further projects

Most expensive sales

Top apartment sales

  1. AED 171,036,254 – Aman Residences Tower 2, Jumeirah Second
  2. AED 121,841,000 – Baccarat Residence T1, Downtown Dubai
  3. AED 112,603,000 – Solaya 5, Jumeirah First
  4. AED 106,048,000 – Solaya 6, Jumeirah First
  5. AED 70,238,323 – Aman Residences Tower 1, Jumeirah Second

Top villa sales

  1. AED 145,000,000 – Palm Jumeirah
  2. AED 88,800,000 – Hadaeq Sheikh Mohammed Bin Rashid
  3. AED 86,000,000 – Emirates Living
  4. AED 75,000,000 – Wadi Al Safa 3
  5. AED 70,300,000 – Ghadeer Al Tair

Notes on methodology

Scope. Headline totals and the category table cover every property category recorded in the data, including Plot and Building. The primary/resale split, top-area rankings and the year-on-year series cover Apartment, Villa and Commercial only, so those figures are deliberately smaller than the headline and should not be added across sections.

Rounding. Headline totals are the authoritative rounded figures. Category-level breakdowns are rounded independently and may not sum exactly to the headline.

Definitions. Price figures are medians, not averages. Year-on-year compares the period against the same period one year earlier. All values in AED; areas in square feet.

Q2, 2026 Report – FAQ

  • How did Dubai's Q2 2026 market compare with a year earlier?

    On the apartment, villa and commercial basis used for comparison, transaction volume fell 28% and value dropped 40% to AED 94.17 billion versus Q2 2025. Across all property types the quarter still logged 38,257 deals worth AED 110.36 billion.

    #LIST_BADGE#
  • If sales fell that much, why describe the market as resilient?

    Because the retreat was in activity, not pricing. The all-property median held at AED 1,715 per square foot, and every category's price per square foot either held flat or rose. When volumes drop but prices hold, it points to buyers stepping back rather than sellers capitulating.

    #LIST_BADGE#
  • Which segment weakened the most?

    Villas. Their transaction count collapsed 57% to 4,383 — the thinnest Q2 since 2021 and 5,895 fewer deals than a year earlier — pulling segment value down 59%. It was by far the sharpest volume drop of the three categories.

    #LIST_BADGE#
  • Did anything actually grow?

    Commercial did, and it was the sole grower. Volume rose 10% to the highest Q2 since 2014 while value surged 157%. The outsized 91% rise in price per square foot suggests the growth was concentrated in larger, higher-value assets rather than spread evenly across the segment.

    #LIST_BADGE#
  • What is happening with rents?

    The pressure is falling on renewing tenants. New-lease medians were broadly flat to slightly lower, but renewal rents climbed 5.26% for apartments, 9.84% for villas and 7% for commercial. Staying in place cost more than the headline new-lease figures imply.

    #LIST_BADGE#
  • Is more supply on the way?

    The quarter delivered more than it launched — 14,503 units handed over against 11,505 launched, a 0.8 ratio and a net of 2,998 additional completed units. That adds ready inventory to a market where secondary, completed stock trades at a slight premium.

    #LIST_BADGE#
  • Where was the money concentrated geographically?

    Business Bay led by value at AED 8.36 billion, reflecting premium central pricing, while Dubai South led by sheer volume at 5,427 transactions as a high-turnover growth corridor. Jabal Ali First and Wadi Al Safa 3 featured on both the value and volume leaderboards.

    #LIST_BADGE#
  • Were any of these figures records?

    Not at the headline level — neither overall volume nor overall value set a record this quarter. The standouts were on price: apartments, villas and commercial each posted their highest Q2 price per square foot in the 13-year series.

    #LIST_BADGE#