Dubai Property Market Rebounds as Buyers Return in July

Aug 21, 2026
News
8

Dubai’s housing sector demonstrated improvement in July, as sales and values increased, showing that customers returned with more confidence in the market. Data reported by Property Finder and Mortgage Finder showcases a rise in sales of apartments and houses in Dubai, especially within the secondary market.

This is an important change for the Dubai properties market since buyers are starting to pay less attention to the potential decline of housing prices and are placing more emphasis on obtaining good prices before they rise even more. This trend indicates that the Dubai real estate sector is entering a new phase of balanced development, though recovery may differ across the market.

DubaiPropertyMarketReboundsAsBuyersReturnInJuly

Sales Rise as the Secondary Market Leads

In July, sales activity increased significantly thanks to the secondary market.

Sales transactions increased from 8,887 in June to 9,217 in July, an increase of 3.8%.
Value of transactions grew by 5.2% from AED 33.2 billion to AED 34.9 billion.
The volume of the secondary market grew by around 18% from 4,100 transactions to 4,800 transactions.
There was an increase of transaction volumes in the commercial sector of about 24.8%, with 397 deals executed and AED 5.8 billion exchanged.

This information indicates an increased interest in existing property that can be utilized for rental purposes. For the real estate market in Dubai, it is important to understand liquidity and demand patterns that influence decisions of property investment in Dubai. People who are looking to buy house in Dubai can expect to find more opportunities due to the new price reality in the sector.

Buyer Confidence Improves as Price Fears Ease

There has been an increase in sales, along with a clear change of attitude. The survey by Property Finder shows that the percentage of future buyers who want to buy in 6 months has increased from 66% to 68%.

At the same time:

The percentage of buyers expecting price drops has fallen from 56% to 52%
Back then, at the beginning of the conflict, it was 73%.
The share of those anticipating stable or rising prices rose from 44% to 48%.
The sale-price index remained at 2.5% of the pre-conflict level for the second month in a row.

The difference between the listed and actual selling prices has been reduced as well. The prospects became closer as the gap decreased to 5.5%–11% in July, while it was 6%–12% in May. For observers of Dubai real estate market, this indicates that buyers and sellers are practically getting on the same page about the prices. Real estate brokers in Dubai are probably expected to play a major role in connecting buyers with properties.

Apartments Capture a Bigger Percentage of Sales

Apartments have made progress against villas and townhouses, boosting their portion of sales from 59.5% to 62%. Studios and one-bedroom apartments were responsible for the increase. Property Finders associates the growth with higher demand from investors for more liquid and potentially more profitable investment options. This explains why an apartment for rent remains interesting for buyers and investors who evaluate rental demand along with the purchase capacity.

More spacious apartments occupy a different niche altogether. The demand for a 4 bedrooms apartments for rent in Dubai is highly driven by family needs, amenities and rental prices while the increase in transactions in July was largely related to smaller apartments.

Mortgage Process Shows Latest Development

Mortgage Finder states that the percentage of mortgage deals has raised in July from 9% to 12.8%, where the majority of applicants belong to the middle-income range.

Those who earn AED 20,000–59,999 per month make up 62.4% of mortgage applicants.
Rich clients with revenues above AED 60,000 faced difficulties in obtaining mortgages for villas and townhouses.
The scarcity in those categories possibly affected mortgage benefit rate.

According to the Dubai Land Department statistics, 2,887 mortgages were issued in July. Apartments held 81.9% of the mortgage share but only 20.3% of apartment purchases were made with mortgages. This shows that apartment purchases are more often made in cash while villas are financed via mortgages and have higher owner-occupancy rate, which is relevant for real estate investment Dubai strategies. Meanwhile, off plan villas for sale in Dubai could be a good opportunity for those who are ready to consider a longer return on investment.

Demand for Commercial and Rental Properties Increases

Commercial activity improved in the month of July, as the number of transactions reached 397, which accounted for a total worth of AED 5.8 billion. As a result, the commercial property In Dubai segment acted positively in contributing to improvements rather than lagging behind residential activity.

Moreover, rental demand also served as an indication of the positive trend. The increase in newly signed leases reached a level of 2% from the pre-war historical period due to the lower rental prices that drove demand. This development opens doors to more prospects for individuals interested in property for rent in Dubai, especially the ones whose rental price remains to be attractive to tenants and ensures high occupancy.

July Indications for the Remaining Months of the Year

The statistics for July indicate that the market is on the mend, driven mainly by selective demand rather than broad recovery and growth. The availability of homes, units, and affordable property means that some of them have come into the limelight, while the increasing mortgage lending points to the rising confidence among eligible buyers.

For those interested in the best residential projects in Dubai, it makes sense to go for the completed developments when time is of the essence or rental income is a concern. Even though the demand for luxury properties for sale stays at the luxury end, the most impressive growth in July belonged to the apartments and second-hand property.

The areas that are relevant when analyzing the trends in the market are Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Dubai Hills Estate, and Arabian Ranches. On the whole, July brought the improvement of sales, strengthened optimism, increase in apartment demand, growth in the volume of mortgages issued, as well as a stable rental growth. Given that not so many buyers expect big price drops, the market is better positioned for a more confident second half of the year.

ALSO READ