Dubai property market continues to adjust after several years of rapid expansion. Recent figures show lower transaction activity, yet experts believe the Dubai property market is moving toward a healthier and more sustainable phase. Buyers remain active, while developers and investors now focus on long-term value instead of short-term gains.
The latest market data shows more than 38,000 residential property transactions during the second quarter of 2026. This result marks a significant decline compared with the record-breaking performance during the same period last year. Transaction volumes dropped by nearly one-third, while total sales value reached AED110.4 billion.
Although overall sales declined, property prices remained stable. The average price per square foot increased by 6.5 percent compared with the previous year. This growth suggests that demand continues to support property values despite slower market activity.
Industry experts believe the current slowdown reflects market normalization rather than a major correction. They expect more balanced conditions as speculative buying decreases and purchasing decisions become more selective.
Developers also reduced the number of new project launches during the second quarter. This decline limited the supply of new investment opportunities and contributed to lower transaction volumes. Analysts expect this trend to continue into the coming months.
The off-plan sector still dominates the market. Properties under construction represented around 75 percent of total transaction volume and approximately 73 percent of overall sales value during the quarter.
However, market specialists expect this balance to change gradually. As more completed communities become available, buyers may increasingly choose ready homes instead of off-plan projects. This shift could strengthen activity within the secondary housing market.
Experts also believe fewer project launches create healthier market conditions. Developers with strong financial positions and proven delivery records continue introducing new projects. As a result, buyers gain greater confidence when selecting investment opportunities.
Dubai property market experienced remarkable expansion between 2020 and 2025. During that period, total sales value increased by 866 percent, while average prices nearly doubled. After such rapid growth, many analysts expected a period of moderation.
Recent market conditions support that expectation. Instead of sharp price declines, activity now reflects a more measured pace. Buyers continue entering the market, although they evaluate opportunities more carefully before making purchases.
Completed housing deliveries also reached their highest level in five years during the second quarter. Around 27,000 residential units entered the market, compared with approximately 7,000 units during the previous quarter. Most of these homes originated from projects launched several years ago.
The increase in completed properties provides buyers with more housing choices. It also encourages stronger activity within established communities as resale opportunities continue expanding.
Market observers report that long-term residents remain among the most active buyers. Instead of widespread panic selling, homeowners continue holding their investments while seeking future value appreciation.
Mortgage-backed purchases also remain relatively stable. This trend highlights continued confidence among residents who plan to live in Dubai for many years rather than pursue quick investment returns.
Looking ahead, analysts expect transaction activity to remain moderate while prices stay broadly resilient. Higher housing deliveries and more selective buying behavior should create a balanced market environment.
Overall, Dubai property market appears to be entering a more mature stage. Stable pricing, steady buyer demand, and greater focus on quality developments could support sustainable growth throughout the remainder of 2026.
