Dubai entered 2026 with exceptional transaction momentum. January and February ranked among the market’s most active months before regional uncertainty encouraged many buyers to adopt a more cautious approach from March onwards. 

However, the Dubai Real Estate H1 2026 Report shows that the market did not simply slow down—it became more differentiated. While some segments experienced a sharper moderation, others continued to demonstrate resilience. 

The report describes this divergence as a “tale of two markets” and examines differing performance across off-plan and ready properties, apartments and villas, and the luxury segment. 

Dubai Housing Market Report: H1 2026 at a Glance 

Dubai’s residential market recorded 81,839 property transactions worth AED 225.7 billion during the first half of 2026. 

Transaction volume declined by 26.4% compared with H2 2025 and by 13.6% year-on-year. Residential sales value also moderated by 18.8% half-on-half and 16.1% year-on-year. 

Despite these adjustments, transaction volume and value remained above H1 2024 levels. The average residential transaction value also increased to AED 2.76 million. 

The report records a decline in overall transaction volume alongside an increase in the average transaction ticket to AED 2.76 million. 

Off-Plan Property Continued to Dominate Market Activity 

Off-plan property remained the primary driver of Dubai’s residential market during H1 2026. 

The segment recorded: 

The secondary market accounted for 26.2% of transaction volume and 25.5% of residential sales value. 

Off-plan’s share of residential activity has increased across seven consecutive half-year periods. The report presents this as evidence of continued confidence in Dubai’s expanding development pipeline. 

Apartments Led Transaction Volume 

Apartments accounted for 68,739 transactions, representing 84% of residential sales during H1 2026. The segment generated AED 133.9 billion in transaction value. 

Off-plan apartment demand was concentrated within emerging master developments. Dubailand Residence Complex recorded 3,676 confirmed transactions, followed by Azizi Venice with 3,479. 

Ready-apartment demand was strongest in established communities. Jumeirah Village Circle recorded 1,921 transactions, followed by Business Bay with 1,254. 

The report identifies apartments as the primary contributor to residential sales activity, accounting for more than four out of every five transactions during H1 2026. 

Villas Attracted Higher-Value Capital 

Villas represented 16% of residential transaction volume, with 13,100 sales, but generated AED 91.3 billion in value. This accounted for 40.5% of total residential sales value. 

Off-plan villa activity was led by Damac Island City with 3,388 transactions, followed by The Heights with 898 and The Oasis with 518. 

Ready-villa demand remained concentrated in established residential communities. DAMAC Hills 2 recorded 478 transactions, followed by Jebel Ali Village with 221. 

The report distinguishes between the roles of the two property types: apartments drove transaction volumes, while villas continued attracting higher-value capital. 

Dubai Property Prices H1 2026 

Apartment pricing entered 2026 from a position of strength before easing during the second quarter. 

The average apartment sales rate closed June at AED 1,790.8 per sq ft, compared with AED 1,852.8 at the end of H2 2025. The average apartment rental rate moderated from AED 126.3 to AED 120.3 per sq ft per month. 

As rental values adjusted faster than sales prices, gross apartment yields declined from 7.03% in H2 2025 to 6.93% in H1 2026. 

Villa pricing remained comparatively stable. The average villa sales rate closed June at AED 2,324.7 per sq ft, compared with AED 2,330.7 at the end of H2 2025. 

Average villa rental rates moderated to AED 102.1 per sq ft per month, while gross rental yields settled at 4.48%. 

The report characterises the apartment market as moving from rapid appreciation towards more sustainable value creation. In the villa segment, it identifies value preservation and resilient end-user demand as defining characteristics. 

Which Dubai Communities Led the Market? 

Jumeirah Village Circle led Dubai’s residential market by transaction volume, recording 5,138 sales. Dubailand Residence Complex ranked second with 3,676 transactions. 

The ranking changed when communities were assessed by indicative capital exposure. 

DAMAC Islands led with approximately AED 24.6 billion, while Jumeirah Village Circle recorded AED 9.9 billion. The top five communities collectively generated more than AED 55 billion in indicative capital exposure. 

The rankings demonstrate that transaction volume and indicative capital exposure measure different aspects of community activity and should not be used interchangeably. 

Luxury Property Maintained Off-Plan Momentum 

Dubai recorded 1,114 residential transactions valued at AED 20 million or more during H1 2026. These sales generated AED 40.08 billion, with an average transaction value of AED 36 million. 

Off-plan property accounted for 847 luxury transactions, representing 76% of the segment. 

Properties priced between AED 20 million and AED 50 million accounted for 956 transactions, while properties valued above AED 50 million recorded 158 sales. 

The Oasis led luxury transaction volume with 199 sales. Dubai Hills Estate followed with 178 transactions and recorded the highest luxury transaction value at AED 6.02 billion. 

Residential Supply and the Dubai Investment Outlook 

Nearly 29,000 residential units were completed during H1 2026. At the same time, 524,970 units remained under construction, including 444,669 apartments and 80,301 villas. 

Dubai’s total residential stock is projected to exceed 1.03 million units by 2028. 

The report presents the construction pipeline at emirate level and does not provide a community-level supply breakdown. It therefore does not establish how future supply will affect prices, absorption or returns in individual communities. 

The report also records several policy developments during H1 2026, including: 

What Does the Report Signal for the Remainder of 2026? 

The report does not present Dubai as one uniform property market. Instead, it analyses H1 2026 across several distinct dimensions: 

Dubai recorded activity across multiple residential segments, but the report does not identify one strongest investment opportunity or provide community-level return forecasts. 

For complete community rankings, price movements, rental yields, policy developments and supply data,  download the H1 2026 Dubai Real Estate Market Intelligence Report from Reliant Surveyors. 

HouzzHunt Publisher Note 

Planning your next Dubai property move? Speak to a HouzzHunt advisor for personalised property guidance. 

The HouzzHunt call to action above is publisher information and is separate from the market analysis derived from Reliant Surveyors’ report.