Dubai property market shifts as ready-home sales rise and buyers become more selective

Dubai’s residential property market is entering a period of stabilisation, with buyers becoming more selective and demand for completed homes remaining resilient, according to a new report from Savills Middle East.

The value of ready-property transactions increased from AED21.3bn ($5.8bn) in the second quarter to AED25.1bn ($6.8bn) in the third quarter of 2026, an increase of approximately 18 per cent.

The findings, published in Savills’ Dubai Residential Market in Minutes Q3 2026 report, indicate that the market is moving towards a more sustainable balance following several years of strong growth.

While overall residential transaction volumes declined, Savills said the slowdown was largely concentrated in the off-plan segment, reflecting fewer new project launches rather than a broad-based weakening in demand.

Dubai property sales reach AED70.8bn in Q3

Dubai recorded approximately 34,500 residential transactions during the third quarter of 2026, representing a decline of 4 per cent quarter-on-quarter and 38 per cent year-on-year.

The total value of residential transactions reached AED70.8bn ($19.3bn), down 14 per cent from the previous quarter.

However, activity in the ready-property market remained stronger, with transaction values increasing to AED25.1bn ($6.8bn), compared with AED21.3bn ($5.8bn) in Q2.

The moderation in overall transaction volumes coincided with a sharp reduction in new project launches.

Approximately 5,000 residential units were launched during Q3, compared with around 36,400 in the preceding quarter.

Andrew Cummings, Head of Residential Agency, Savills Middle East, said: “Dubai’s residential market is becoming more selective following several years of strong growth. Buyers are placing greater emphasis on pricing, location, quality and long-term value, while developers are taking a more measured approach to new launches.

“What’s encouraging is the continued demand for completed properties and the resilience of the prime segment. As the market becomes more balanced, well-located, quality homes that are priced appropriately should continue to attract interest from both end-users and investors.”

Dubai apartment and villa prices show signs of stabilisation

Average apartment prices stood at AED1,817 ($495) per sq ft in Q3, down 4.8 per cent quarter-on-quarter.

Villa and townhouse prices averaged AED1,523 ($415) per sq ft, representing a decline of 3.3 per cent over the same period.

However, Savills’ like-for-like analysis showed more resilient underlying price performance.

On a comparable basis, apartment prices declined by 1.7 per cent, while villa and townhouse prices remained unchanged.

The difference suggests that headline average price movements were partly influenced by changes in the type and value of properties being sold, rather than uniform price declines across the market.

Dubai luxury property prices continue to rise

Dubai’s prime residential market continued to demonstrate resilience despite fewer high-value transactions.

A total of 669 residential transactions above AED10m ($2.7m) were recorded during Q3, compared with 871 in the previous quarter.

Prime apartment prices remained 4 per cent higher year-on-year at AED5,237 ($1,426) per sq ft.

Prime villa and townhouse prices increased by 3.6 per cent year-on-year to AED2,791 ($760) per sq ft.

Among the notable transactions recorded during the quarter were:

A villa on Palm Jumeirah sold for AED260m ($70.8m)
A villa in Dubai Hills Estate sold for AED252m ($68.6m)
An apartment at Aman Residences sold for AED166m ($45.2m)

The figures highlight continued demand for high-value properties, even as buyers become more selective.

Dubai rental transactions rise 16 per cent

Dubai’s rental market also recorded an increase in activity during the third quarter.

Approximately 181,900 rental transactions were registered, up 16 per cent quarter-on-quarter.

New leases accounted for 44 per cent of rental activity, compared with 36 per cent in the previous quarter.

Savills said rental rates across selected communities were showing early signs of stabilisation, although performance continued to vary by location.

More than 525,000 Dubai homes scheduled for delivery

The report also highlighted a more measured approach to residential development.

Approximately 50,000 residential units were launched during the first nine months of 2026, around 64 per cent fewer than during the corresponding period in 2025.

Savills said developers were increasingly focusing on phased launches, product positioning and flexible payment plans.

Looking ahead, the consultancy expects reduced launch activity and delayed completions to moderate immediate supply pressures.

However, more than 525,000 residential units are currently scheduled for delivery between 2027 and 2030.

Savills said population growth, household formation and project-specific fundamentals would remain important factors in supporting longer-term demand.

The report suggests that Dubai’s residential market is entering a more selective phase, with property quality, location and pricing becoming increasingly important to buyers and investors.