Q2 2026: Sales cooled to AED84.9bn, but prices and rents kept climbing
Dubai's property market saw its first genuine cooling in years in Q2 2026 (April to June). Residential transactions fell 31% year on year to 34,850 deals, as regional uncertainty and the Eid Al Adha holiday weighed on activity through May. Even so, the quarter ranked as the third highest second quarter on record, and price per square foot kept rising across most communities even as deal volumes fell.
Below, we break down what moved in sales, buyer demand, luxury and leasing, and what it means if you're buying, selling, renting or investing in Dubai.
Key highlights
- 34,850 residential transactions, down 31% year on year and 22% quarter on quarter, still the third highest Q2 on record
- AED 84.9 billion in total transaction value, down 45% year on year
- Off-plan holds 76% of all sales activity, versus 24% for the secondary market
- Buyer enquiries down 33% year on year, but cash purchases hit 61% of all betterhomes deals
- 578 luxury transactions above AED 15 million, down 59% year on year, though off-plan luxury sales rose 27%
- Tenant enquiries up 20% year on year as leasing demand strengthened through the end of the quarter
- 74,100 new homes due to complete in Dubai in 2026, peaking at 160,700 units in 2027
[Download the full report]
Off-plan absorbs the shock as prices keep rising
Off-plan projects in Dubai cushioned most of the slowdown in Q2 2026 (April to June). Secondary market sales fell 59% year on year to 8,512 deals, while off-plan eased just 12% to 26,338 sales, now 76% of all activity.
The pullback was concentrated in the secondary market, while price per square foot rose across the majority of tracked communities, led by villa communities like Palm Jumeirah Garden Homes, up 37% year on year. Volumes recovered sharply too, up 28% month on month into June.
Cash buyers rise to 61% as 74,100 homes head to market
Buyer enquiries fell 33% year on year, but the buyers who stayed active increasingly paid cash, now 61% of betterhomes deals in Q2 2026.
Meanwhile, Dubai's development pipeline stays substantial: roughly 74,100 homes complete in 2026, rising to 160,700 in 2027, concentrated mostly in apartments for sale in Dubai, keeping villa and townhouse stock comparatively scarce.
AED15m+ deals slow to 578, but off-plan prime sales jump 27%
Prime transactions above AED 15 million fell 59% year on year to 578 deals, a pullback from an exceptional prior-year record rather than a loss of appetite.
Off-plan luxury sales rose 27% year on year, with buyers continuing to commit to landmark launches from leading developers in The Oasis, Dubai Hills Estate and Palm Jebel Ali, even as secondary prime activity cooled.
Tenant enquiries surge 20% as landlords face more competition
Leasing was the clearest counterpoint to the sales slowdown. Tenant enquiries rose 20% year on year and 18% quarter on quarter as would-be buyers stayed in the rental market and existing residents traded up.
Rents held above year-earlier levels for apartments for rent in Dubai and villas, though increased supply gave tenants more room to negotiate on new lets, making pricing and presentation more important for landlords than at any point in the past six months.
Want the full picture?
Get community-level data on sales, leasing, luxury and supply across every major Dubai neighbourhood in the complete Q2 2026 report.
[Download the report]
For more Dubai real estate news, browse our Dubai real estate blogs, or contact our team for tailored advice on buying, selling, renting or investing in Dubai.
Frequently asked questions about Dubai's property market in Q2 2026
How many residential transactions closed in Dubai in Q2 2026?
Dubai recorded 34,850 residential transactions in Q2 2026 (April to June), down 31% year on year, though still the third highest second quarter on record.
Are Dubai property prices still rising in 2026?
Yes. Price per square foot rose across most communities in Q2 2026, even as transaction volumes fell, led by villa communities such as Palm Jumeirah Garden Homes.
Is it a good time to rent or buy in Dubai right now?
Tenant enquiries rose 20% year on year in Q2 2026, giving landlords more competition and tenants more room to negotiate. Buyers face less competition overall but still pay a premium for prime, well-located stock.
