The average cost of a home has dropped year-on-year in Dubai for the first time since February 2021 – the peak of the Covid 19 pandemic – according to leading real estate advisory and property consultancy, Cavendish Maxwell. 

Sales prices in August 2026 stood at AED1,636 per sq ft – a decline of 1.7% compared to August last year, and a drop of 1.3% in the last 3 months, the company said.

Cavendish Maxwell’s latest data shows that residential sales values reached AED23.4 billion in August, with year-to-date transactions worth nearly AED270 billion. Transaction values in the first eight months of the year were down 24% compared to the same period in 2025.

Nearly 10,900 homes were purchased this August, around 14% fewer than in July, partly because of the traditional summer slowdown in buyer activity. Off-plan properties accounted for around 75% of August sales.

Ronan Arthur, Director, Head of Residential Valuation at Cavendish Maxwell: “After an extended period of exceptional strong sales activity with sustained price increases, the Dubai residential market continues its transition to a more measured phase. The August data confirms what our in-depth market insight – covering quarterly, six-month and annual statistics and trends – has been telling us for a while: prices are softening and the market is entering a more mature cycle. 

“The fundamentals that drive Dubai real estate demand in the emirate remain intact, but the near-term outlook is being shaped by a combination of fewer launches, regional uncertainty and a broader normalisation in buyer activity, which will continue to influence transaction levels and price performance,” he added. – TradeArabia News Service