Dubai Property Sales Reach AED87.9 Billion as Market Adapts to Slower Q2 Activity

Aug 05, 2026
News
20

In the Q2 2026 period, Dubai's residential property sector proved to be resilient as it reached AED87.9 billion in sales despite the decline of transactions. JLL data indicate that regional geopolitical situation impacted the actions of buyers, though the market had number of stabilizing indicators like steady demand, modest price growth rates, and government support. Furthermore, the report highlights that Abu Dhabi's residential market remained steady recording a high level of price growth and an increase in off-plan properties demand.

The successful performance of Dubai real estate testifies that and the capital markets can adapt to the conditions of regional volatility. The variety of real estate options available in Dubai properties across different price segments is attractive for both investors and consumers.

DubaiPropertySalesHitAED87.9BnDespiteSlowerQ2Activity

Sales are Down despite Off-Plan Projects

Despite a decrease in the overall number of transactions, the off-plan sector was the largest contributor to home activity during the quarter.

Market highlights:

During the second quarter of 2026, AED 87.9 billion in residential transactions were completed
Overall transaction volume decreased by 28.6% when compared to last year
The off-plan sector continued to be the biggest contributor to the market
Approximately 40,000 residential units are expected to be completed in Dubai and Abu Dhabi in the second half of 2026

The activity remained high, thus continuing to facilitate property investment in Dubai despite changing market conditions. Even though there are some changes in the market conditions, investors must stay optimistic about off plan projects in Dubai created by reputable companies with successful delivery results.

Off-Plan Market Continues to Surpass the Secondary Market

Despite off-plan developments leading the trade market, a decrease occurred in the activity for the second quarter.

According to JLL:

The off-plan sales went down by 23.1% in comparison to last year.
The off-plan activity went down by 14.7% compared to last quarter.
The secondary market saw the largest decline.
The secondary market sales went down by 41.8% in comparison to last year.
The resale activity decreased by 30.3% with respect to last quarter.

Though the volumes of transactions decreased, the off-plan projects keep being of interest with different long-term buyers. Among the mentioned developments are Business Bay, Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Dubai Hills Estate, where the variety of residential options is offered while the trend remains similar to what was discussed in the report.

The fast-changing Dubai real estate market continues to open new opportunities for the buyers willing to invest in both new-built and existing communities. The interest in the off plan apartments for sale in Dubai remains quite high in spite of the lower volumes of transactions.

Price Movement Illustrates a More Balanced Market

According to the report from JLL, price growth was recorded at a moderate rate in Dubai’s housing market despite slower sector activity.

Key price trends:

Residential development prices rose by 2% to 6% compared to last year
Price increases for villas were the biggest
Residential property prices declined by 2% to 3% quarter on quarter
Apartments had the biggest quarterly price drop

While demands for premium real estate is still high, the demand for luxury apartments for sale is still strong on the market. Some buyers take advantage of the current price hikes to but ready properties in Dubai before the increasing market cycle begins.

Government Policies Provide Market Support

As far as market activities are concerned, the government programs keep improving the rental affordability and housing accessibility. Indeed, in the second quarter the Dubai Land Department rolled out the Flexi Rent program which allows tenants to pay their rent monthly, quarterly or semi-annually, instead of a one-off payment every year.

JLL reports that these steps are indicative of the broader regional effort on the part of the governments of Dubai and Abu Dhabi to improve rental affordability and create more tenant-oriented housing sector. By introducing this initiative, the government will facilitate the process of renting for the people in search of properties for rent in Dubai. Furthermore, this would also assist tenants who want to get a 3 bedrooms apartments for rent in Dubai since the upfront rental expenses will go down.

What the Latest Figures Mean for Buyers and Investors

Even though in this quarter the volume of transactions has decreased, the residential market has not disappointed as it continued to have strong sales numbers, moderate price increases, and healthy demand for off-plan properties. In addition to this, around 40,000 residential units in Dubai and Abu Dhabi are set to be completed in the second half of 2026, which will enhance the supply of residential property while not changing basic principles of the market.

This situation continues to enhance the confidence of long-term investors in the real estate investment Dubai. Furthermore, demand for luxury villas for sale is also supported with buyers looking for space in well-developed neighborhoods.

Prospects For Dubai's Real Estate Market

According to the latest report by JLL, Dubai's property market appears to be moving into a more balanced state rather than a downturn. Although there have been some short-term effects from the ongoing geopolitical situation on transaction volumes, ongoing government initiatives, a large number of units to be handed over in the future, and always high demand from buyers give ground to be optimistic with regard to the future of the Dubai property market. JLL also explained the decrease in transaction volumes by the prudence of buyers stemming from regional geopolitical events.

It is worth noting that cooperating with a reputable real estate brokers in Dubai can facilitate buyers' and investors' search for real estate opportunities as market conditions are changing. In addition, the ongoing recovery of the premium sector of the market contributes to the demand for luxury properties for sale, especially in those areas that have been enhanced over Time and promise good growth opportunities in the long term.

ALSO READ