Dubai homebuyers get more choice as 24,800 new units enter the market
Prices and rents ease in Q2 but remain above last year as new supply increases
Dubai: Dubai added 24,800 homes during the first half of 2026, giving buyers and tenants more choice as the residential market moved into a period of steadier growth following two years of elevated activity.
The number of completed homes increased almost 38% from the same period last year and 12% from the second half of 2025, according to Cavendish Maxwell.
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Residential sales prices eased 2.6% from the first quarter, while rental rates declined 2.5%. Prices remained nearly 2% higher than a year earlier, with rents up 7.8% annually.
More homes reach completion
The rise in handovers marked Dubai’s strongest half-year delivery period in several years, with projects launched during the recent market expansion reaching completion.
New launch activity moderated, with 28,000 units released across 124 projects during the first half, compared with 102,000 units across 410 launches a year earlier.
Cavendish Maxwell said the slowdown began during the first quarter after record launch volumes in 2024 and 2025, while regional uncertainty led some developers to delay projects during the second quarter.
“Dubai’s residential market is showing clear signs of transitioning to a new cycle following exceptional levels of activity over the last two years,” said Ronan Arthur, Director and Head of Residential Valuations at Cavendish Maxwell.
The fundamentals that drive real estate demand in the emirate remain intact, but the near-term outlook is being shaped by a combination of factors – including the impact of fewer launches, regional uncertainty and a broader normalisation in buyer activity – that are likely to influence transaction levels and price performance.
Sales remain above Dh220 billion
Dubai recorded 79,300 residential transactions worth Dh221.4 billion during the first half.
Transaction volumes were almost 14% lower than a year earlier and 27% below the record levels recorded during the second half of 2025. Sales values declined almost 16% annually and 20% from the previous six-month period.
Off-plan homes accounted for almost 75% of transactions, with developer sales representing more than 92% of activity in the segment.
Initial off-plan sales reached 54,700 transactions, a modest decline of 1.5% from last year, while off-plan resales fell 51% to 4,600.
“Buyers aren't stepping away, they're simply targeting higher value inventory,” said Ajay Rajendran, Founder and Chairman of Meraki Developers.
Flexible payment plans and Golden Visa incentives continue to draw serious international attention. Looking into H2, we anticipate steady, moderate price growth as the market continues to mature
Additional supply due in second half
Around 47,000 units are scheduled for completion during the second half, although Cavendish Maxwell expects actual handovers to range between 14,000 and 23,500 homes based on historical delivery rates.
Apartments are likely to account for more than 82 per cent of deliveries, with Jumeirah Village Circle, Dubai South, Dubai Science Park, Business Bay, Downtown Dubai and Dubai Healthcare City representing nearly 37 per cent of scheduled completions.
A massive residential supply pipeline of over 20,000 units will test market absorption rates and shift leverage back to buyers.
The longer-term pipeline includes 162,500 units scheduled for 2027 and 128,200 homes in 2028.
Dubai South leads off-plan sales
Apartments accounted for around 84% of transactions across the off-plan and ready segments.
Dubai South led off-plan apartment sales with 7,306 transactions, followed by Dubai Residence Complex with 3,408 and Jumeirah Village Circle with 3,055.
Jumeirah Village Circle retained the top position for ready apartment sales with 1,812 transactions, while DAMAC Islands 2 led off-plan villa and townhouse activity with 3,192 deals.
Gross rental yields averaged nearly 7% for apartments and 5% for villas and townhouses during the first half.
Mortgage transactions increased 7.2% to 22,500, while sales of homes priced above Dh50 million rose 13% to 160 transactions.
