Dubai Residential Property Market Report – H1 2026
Explore the latest trends shaping Dubai’s residential property market, including sales activity, property prices, rental performance, luxury real estate and the outlook for H2 2026.
Download the H1 2026 Dubai Property Market Report
The H1 2026 Dubai Residential Property Market Report provides an in-depth analysis of how the market performed during the first six months of the year, from changing buyer behaviour and off-plan demand to rental yields, luxury property and community-level performance.
Dubai’s residential property market in H1 2026
Dubai’s residential real estate market remained highly active during the first half of 2026, despite a period of regional uncertainty influencing buyer confidence and transaction activity. A total of 80,509 residential properties were sold with a combined value of AED 226.5 billion, making H1 2026 the second strongest first half on record by sales value.
The six-month period was characterised by changing market conditions. January and February began strongly, before buyers adopted a more measured approach during the following months. Activity subsequently recovered in June as confidence improved, demonstrating the continued depth of underlying demand from investors and end-users.
Off-plan property remained a major driver of Dubai real estate activity, accounting for 71.3% of residential sales. At the same time, buyers became increasingly selective, placing greater emphasis on developer reputation, location, property quality, pricing and long-term investment potential.
Dubai’s luxury property market also continued to expand. 320 homes valued above US$10 million were sold during H1 2026, up 23% year-on-year, with these transactions accounting for 9.7% of total residential sales value. Meanwhile, the rental market remained highly active, with more than 271,000 tenancy contracts registered and average gross rental yields of 6.6%.
The full report explores these trends in greater detail, including sales and rental performance, community-level pricing, off-plan and secondary market activity, rental yields, ultra-prime transactions, mortgage conditions and the outlook for Dubai real estate during the remainder of 2026.
Frequently Asked Questions
The report provides a comprehensive overview of Dubai’s residential real estate market during the first six months of 2026. It covers sales transactions, property prices, off-plan and secondary market activity, rental performance, rental yields, luxury property, mortgages and community-level trends, alongside an outlook for H2 2026.
Dubai recorded 80,509 residential sales worth AED 226.5 billion during H1 2026. While transaction activity moderated from the exceptional levels recorded in 2025, H1 2026 remained the second strongest first half on record by residential sales value, with activity remaining well above historical averages.
Price performance remained positive across many Dubai communities during H1 2026, although growth became increasingly varied by location and property type. Established villa communities and prime locations continued to perform strongly, while buyers became more selective in areas experiencing greater levels of new supply.
Yes. Off-plan properties accounted for 71.3% of Dubai residential sales during H1 2026, making new developments the largest component of the market. Developer payment plans, new project launches and continued demand for modern residential developments all contributed to off-plan activity.
Dubai’s ultra-prime property market reached a new H1 high, with 320 homes valued above US$10 million sold during the first six months of 2026, an increase of 23% year-on-year. These transactions generated US$6.0 billion in sales value, with demand spanning established prime locations and newer luxury developments.
The average gross residential rental yield stood at 6.6% in June 2026. Apartments generated an average yield of 6.9%, compared with 5.1% for townhouses and 4.5% for villas. Actual yields vary considerably depending on location, property type, purchase price and ongoing ownership costs.
The report is designed for buyers, investors, sellers, landlords and anyone looking to better understand Dubai’s residential property market. It provides both headline market data and more detailed analysis to help readers assess current conditions and identify the trends likely to shape the remainder of 2026.