Dubai added 24,800 new units to its residential real estate inventory in H1 2026, a rise of nearly 38% compared to the same period last year and 12% more than in H2 2025, according to leading real estate advisory and property consultancy, Cavendish Maxwell.
The sharp rise in completions – the strongest half-yearly delivery period in several years – suggests that Dubai’s residential property sector is transitioning from a launch-led cycle to a delivery-driven one as projects launched in recent years come to fruition and are handed over, the company said.
While year-on-year deliveries climbed in H1, the number of new projects declined, with 28,000 new units across 124 launches compared to 102,000 units across 410 launches in H1 last year.
The moderation preceded the onset of regional tensions, with Q1 seeing notably fewer launches, suggesting that developers had adopted a more measured approach following record launch volumes in 2024 and 2025. The pullback intensified in Q2, when heighted regional uncertainty prompted some developers to defer new projects, Cavendish Maxwell added.
Cavendish Maxwell’s latest analysis of Dubai’s residential real estate market reveals that there were 79,300 sales transactions in H1 2026, a drop of nearly 14% year-on-year and 27% lower than the record levels of H2 2025. The slowdown was reflected in both the off-plan and ready segments which were down by nearly 9% and nearly 26% respectively. Off-plan sales accounted for almost 75% of all transactions.
Residential sales values reached AED221.4 billion ($60.29 billion) in H1, down nearly 16% year-on-year and 20% lower than H2 2025. Off-plan sales values, at almost AED166 billion, were down 13.7% on the same period last year, while ready property values declined 21% to AED55.5 billion.
Ronan Arthur, Director, Head of Residential Valuations at Cavendish Maxwell, said: “Dubai’s residential market is showing clear signs of transitioning to a new cycle following exceptional levels of activity over the last two years. The fundamentals that drive real estate demand in the emirate remain intact, but the near-term outlook is being shaped by a combination of factors – including the impact of fewer launches, regional uncertainty and a broader normalisation in buyer activity – that are likely to influence transaction levels and price performance.”
The report also shows that in H1 2026:
Developer sales continued to dominate the off-plan segment, accounting for more than 92% of transactions
Apartments led both off-plan and ready sales, accounting for around 84% of transactions in both segments
Dubai South remained the top location for off-plan apartment sales, with more than 7,300 transactions, while Jumeirah Village Circle retained the number one spot for ready apartments (1,812 sales)
DAMAC Islands 2 stayed in top position for off-plan villas and townhouses (3,192 sales), as did DAMAC Hills 2 for ready homes (410 sales)
Sales prices and rental rates both declined by around 2.5% in Q2 compared to Q1, but rose annually by 2% and just under 8% respectively
Rental yields stood at nearly 7% for apartments and 5% for villas, with Dubai remaining one of the top global locations for rental returns
Sales of ultra luxury homes – those costing over AED50 million – rose 13% year-on-year, while sales in the luxury segment (AED20 million to AED50 million) dropped 25%
Mortgage activity hit 22,500 transactions – up more than 7% year-on-year
Developer sales dominate
Developer sales secured a market share of more than 92% of off-plan transactions, with buyers taking advantage of attractive prices and payments plans, according to the Cavendish Maxwell study. Initial off-plan sales totalled 54,700 transactions – a modest decline of 1.5% year-on-year, while off-plan resales fell 51% to 4,600.
Apartments lead off-plan and ready sales
Apartment sales outpaced villa and townhouse purchases by a ratio of more than 4 to 1 in both the off-plan and ready segments in H1. They accounted for nearly 85% of off-plan purchases (up from 76% in H1 last year) and 80% of ready sales, slightly down from 83% in the same period last year. Townhouse and villa sales made up 15% of off-plan deals compared to nearly 24% in H1 last year. They showed more resilience in the ready segment, with their market share increasing from 17% a year ago to 20% in H1 2026.
Top sales locations
Dubai South was the top spot for off-plan apartment sales in H1, with 7,306 transactions – more than double that of its nearest competitor, Dubai Residence Complex (3,408). Next were Jumeirah Village Circle (3,055), Dubai Islands (2,891) and Majan (2,402).
In the ready apartment sector, Jumeirah Village Circle retained the top position with 1,812 sales, followed by Business Bay (1,065), Dubai Marina (778), Downtown Dubai (613) and Dubai Creek Harbour (607).
In the off-plan villa and townhouses segment, DAMAC Islands 2 was the winning location by far, with 3,192 transactions – almost 3.5 times as many as the number two spot, The Heights Country Club and Wellness (898). Next were The Oasis (583), Lunaya (360) and Grand Polo Club and Resort (343).
DAMAC Hills 2 saw the most ready villa and townhouse sales, with 410 transactions, followed by Dubai South (190), DAMAC Lagoons (185), The Valley (176) and The Springs (168).
Sales and rental prices drop
Residential sales prices stood at AED1,639 in June 2026. They declined 2.6% in Q2 2026 compared to Q1 but rose annually by just under 2%. The slowdown follows a period of strong appreciation, with annual sales price growth easing from over 12% in December 2025 to 1.9% in June this year.
H1 rental price trends mirrored sales prices, declining 2.5% in Q2 compared to Q1, but rising 7.8% year-on-year. This marks the lowest annual growth rate in recent years after a sustained period of sharp rental rises, with annual increases consistently exceeding 11% from 2023 until early 2026.
Rental yields
Dubai’s gross rental yields averaged nearly 7% for apartments and 5% for villas and townhouses in H1, reinforcing the city’s position as a world-leader for rent returns compared to other major global residential markets such as London, Hong Kong and New York. Among apartment communities, Dubai Investments Park saw the highest yields at 9.7%, followed by International City (8.9%) and International City Phase 2 (8.4%).
Dubai Industrial City, which commanded returns of 6.4%, led villa and townhouse rental yields, followed by DAMAC Hills 2 and Jumeirah Golf Estates (both 5.8%).
Ultra luxury sales up
Sales of ultra luxury homes – those costing over AED50 million – rose 13% year-on-year in H1, and almost 18% compared to H2 2025. There were 160 transactions in total, with 108 in the off-plan segment, which grew 26% annually. Ultra luxury transactions in the ready market were down 7% year-on-year.
Sales of properties in the luxury segment (AED20 million to AED50 million) rose 6.2% on H2 2025 but dropped 25% compared to H1 last year. Of the 1,093 luxury purchases recorded in H1, 826 were bought off-plan.
Mortgage movements
Mortgage transactions totalled 22,500 in H1, a rise of 7.2% compared to the same period last year. Apartments accounted for 70% of mortgage activity, with transactions up 7% year-on-year. Mortgages for villas saw the biggest annual growth, rising more than 18% to 2,600 deals.
Property pipeline
While 47,000 new residential units are projected for delivery in H2 2026, actual completions are expected to range between 14,000 and 23,500, based on historical materialisation trends. Apartments are likely to make up more than 82% of deliveries, with Jumeirah Village Circle, Dubai South, Dubai Science Park, Business Bay, Downtown Dubai and Dubai Healthcare City collectively accounting for nearly 37% of scheduled completions. The delivery pipeline also includes 162,500 units in 2027 and 128,200 in 2028. – TradeArabia News Service