Dubai Residential Market Shifts as Home Deliveries Reach New High

Jul 17, 2026
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During the 2nd quarter of the year 2026, the residential market in Dubai achieved a significant milestone with the highest quarterly level of home deliveries in recent years. A new report from Savills indicated that nearly 27,300 residential units had been completed thereby boosting the supply of residential units in this emirate.

The healthy rates of delivery of completed apartments show that the Dubai real estate is still proving its resilience even as developers are taking a steadier stance towards the future launches of projects. With the growing stock of finished Dubai properties, buyers and end-users enjoy a greater choice of populated residential areas.

DubaiHomeDeliveriesRiseAsNewProjectLaunchesSlowInQ2

Finished Homes Surpass New Projects

The second quarter revealed a distinct change in construction activity as completions became more prevalent while new projects slowed down considerably.

According to Savills:

27,300 homes finished
Roughly 17,400 apartments
About 9,900 villas and townhouses
Just 5,335 housing units launched during the second quarter
Over 45,000 units launched the previous quarter

Instead of launching huge amounts of new projects at once, developers are gradually working on small-scale releases while lengthening time frames from 3 years to 4 years. The latest supply trend gives further confidence to property investment in Dubai since careful pipeline can ensure market stability in the long run. Additionally, the research indicates that the Dubai real estate market is slowly achieving a better and more balanced relationship between supply and demand.

Activity by Buyers Suggests a Better Market Balance

Residential deals amounted to 35,884 in the second quarter, which is a 19% number fall in the count compared to the last quarter.
Despite the low number of deals, the activity of buyers is kept at a high level as purchasers became more selective due to rising supply, availability of different houses for sale and investors' more careful behavior.

Other findings include:

The off-plan properties made up 76% of the total residential deals
Buyers took their time analyzing the available properties
The higher offer means more choices for buyers in various residential categories

The fact that off-plan in Dubai are still popular indicates a high demand for future projects. Further increase in housing offers can provide more opportunities to residents willing to purchase an apartment for sale In Dubai.

Transformations in Refinancing Show Long-Term Confidence

In this report, one of the biggest signals of homeowners’ confidence is seen in the significant increase in the activity of refinancing during the quarter.

According to Savills:

At the end of Q2, refinancing accounted for 70% of all the orders in the valuation sphere
Traditionally, refinancing constituted around 30% of the total valuation activity.

This tendency indicates that numerous homeowners are choosing refinancing instead of selling their properties. This fact proves that the affordability of and security in Dubai’s housing market keep growing. The current situation is favorable for those who want to find townhouses for sale in Dubai in good areas which provide great amenities. Sustainability of the market means that the real estate investments Dubai gain momentum.

Prices and Rents Show Signs of Moderation

The increase in the supply of completed homes has played a role in bringing about some moderation in sale prices and rents in the second quarter.

According to Savills:

Prices of apartments dropped by 4% quarter-on-quarter to AED 1,960 per sq. ft.
Prices of villas and townhouses decreased by 0.8% to AED 1,646 per sq. ft.
Prices in many communities are believed to have changed between 5% and 7%.
The number of annual Ejari registrations decreased by about 22%.
Prices of rents in major residential communities decreased by 8% to 10%.

In the luxury segment, Palm Jumeirah, Dubai Hills Estate, Jumeirah Golf Estates, Jumeirah Bay Island, and Downtown Dubai were still among the most popular residential areas in Dubai. With the increasing supply of homes, the number of best residential projects in Dubai available for the clients becomes bigger, thus giving the buyers more completed real estate to choose from. At the same time, a bigger choice of completed homes is expected to promote property for rent in Dubai as it gives tenants better options.

Luxury Homes Keep Up the Pace

Despite the slowdown in price and rent growth, Dubai’s luxury property sector continued flourishing during the quarter.

The luxury property market reported the following:

864 residential deals made worth over AED10 million.
Palm Jumeirah, Dubai Hills Estate and Jumeirah Golf Estates remained the most favorite spots for luxury property investments.
There was a record sale of AED280 million villa in Jumeirah Bay Island, confirming high interest towards luxury waterfront properties.

The respective performance of luxury real estate indicates the demand for villa for sale In Dubai, specifically in top waterfront and established residential communities. As the market catches up, potential condo and home buyers explore various ready-made properties for sale in Dubai across luxury and regular segments.

Positive Outlook Believes in Future Growth

The report has pinpointed factors such as a steady increase in population, people moving to Dubai, investments in infrastructure and the continued changes in residency rules as the criteria that will keep housing demand in the future. Furthermore, it notes that the recently-approved AED34 billion Metro Gold Line project and new developments in the residency rules can be considered major projects that improve Dubai’s attractiveness.

By working with a reliable real estate company in Dubai, clients will be able to measure and know what to expect as the market shifts towards a more equal supply. Despite the fact that developers have switched to phased project launches, off plan townhouses for sale in Dubai are still available due to the emergence of new developments that appear closer to the delivery date.

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