Dubai property sales recovered 38% from a three-year low as prices rose in 81% of communities and off-plan homes accounted for up to 76% of deals.
Dubai property sales rebounded 38 per cent from a three-year monthly low this summer, while prices increased year-on-year across 81 per cent of communities tracked in a new analysis of Dubai Land Department data.
Dubai recorded 9,536 property sales in May, the lowest monthly total in three years, before transactions increased 28 per cent month-on-month to 12,185 in June and reached 13,116 in July.
That represented a 38 per cent recovery from the May low, according to an analysis by Betterhomes covering the Dubai property market between May and August. Sales subsequently eased to 11,087 in August.
Despite the fluctuations in transaction volumes, property prices remained relatively resilient across the communities covered by the analysis.
Price per square foot was higher year-on-year in 81 per cent of tracked Dubai communities, with a median increase of 6.6 per cent.
Dubai property prices rise
Palm Jumeirah Garden Homes recorded the strongest villa price growth at 37 per cent year-on-year, while Al Jaddaf led apartment growth with an increase of 35.5 per cent.
Richard Waind, CEO of Betterhomes, said: “The summer showed us the difference between demand disappearing and demand being delayed. Buyers became more cautious when conditions were less clear, but they came back quickly once confidence returned.
“That matters because it tells us the underlying reasons people are buying in Dubai have not materially changed.”
The analysis also found strong activity in Dubai’s rental market. More than 40,000 new and renewed tenancy contracts were recorded in June, the highest monthly figure recorded in Dubai, according to Betterhomes. Average rents were 3.1 per cent higher year-on-year, while Jumeirah Islands recorded annual rental growth of 25 per cent.
Rupert Simmonds, Director of Leasing at Betterhomes, said: “The rental figures show that housing demand remained strong even when some buyers were taking longer to make a decision. As more rental stock becomes available, landlords will need to pay closer attention to pricing and property quality.”
Dubai off-plan property sales
Off-plan properties accounted for between 71 per cent and 76 per cent of monthly Dubai property sales between May and August.
Off-plan villa and townhouse sales increased 27 per cent year-on-year during the second quarter, while the value of those transactions climbed 83 per cent.
Luxury off-plan sales valued above AED15m ($4.1m) were also 12 per cent higher year-on-year in August.
Betterhomes said buyers were becoming more selective, with developer track record, location, payment terms, property specifications and delivery timelines becoming increasingly important as the volume of available property increases.
Dubai property supply in 2026 and 2027
Around 74,100 homes are expected to be completed in Dubai during 2026, with supply weighted towards apartments.
The number of potential completions is expected to increase substantially in 2027, when approximately 160,700 units could enter the market.
Betterhomes said the additional supply is unlikely to affect every part of Dubai equally. Apartment-heavy communities with large volumes of similar stock could experience greater competition between landlords and sellers, while villa and townhouse supply remains comparatively limited.
Waind said: “What we saw this summer was that demand is still there, but buyers are taking a more considered approach. With more supply coming through, they’re looking much more closely at location, quality and price.
“The best properties should continue to hold up well, but I think we’ll see a clearer gap between the parts of the market that are well positioned and those that aren’t.”