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Dubai delivers record 24,800 new homes in H1 2026 as market matures
Handovers surge nearly 38% year-on-year as Dubai’s property market shifts from a launch-driven boom to a delivery-led cycle, with prices and rents still climbing
- PUBLISHED: Thu 30 Jul 2026, 8:02 PM
Dubai’s residential real estate market added 24,800 new units to its housing stock in the first half of 2026, a jump of 37.6 per cent compared with the same period last year and 12.1 per cent higher than the second half of 2025, according to Cavendish Maxwell’s latest Dubai Residential Market Performance report.
The surge in completions marks one of the strongest half-year delivery periods on record for the emirate, as thousands of projects launched during the 2024-2025 boom reach handover. Apartments led the wave, with roughly 18,900 units delivered — up 43 per cent year-on-year — while villas and townhouses added a further 5,900 units, an increase of 22.6 per cent.
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Overall, 41.3 per cent of units scheduled for delivery in H1 2026 were completed, broadly in line with historical trends, according to the report.
A market finding its footing
The wave of handovers comes as Dubai’s residential market settles into a more sustainable rhythm following two exceptional years of growth. Sales transactions totalled 79,300 during H1 2026, generating Dh221.4 billion in value — still comfortably above pre-boom activity levels from H1 2024.
Off-plan sales continued to anchor the market, accounting for 74.8 per cent of all transactions, with 59,300 deals recorded. Ready home sales totalled 20,000 transactions. Buyers continued to favour new developments, drawn by developer payment plans even as the broader pace of activity normalised from 2025’s record highs.
Prices and rents keep climbing
Despite the moderation in transaction volumes, Dubai’s property values held their ground. Average sales prices reached Dh1,639 per sq. ft by June 2026, up 1.9 per cent year-on-year, while rental rates climbed to Dh75.7 per sq. ft annually — a 7.8 per cent annual increase.
Rental yields remain among the most attractive of any major global city, with apartments delivering a citywide gross yield of 6.9 per cent and villas and townhouses yielding 5.0 per cent. Dubai Investments Park led all apartment communities with a 9.7 per cent yield, followed by International City at 8.9 per cent. Among villa communities, Dubai Industrial City topped the table at 6.4 per cent.
Mortgage activity also strengthened, with 22,500 transactions valued at Dh51.3 billion — up 17.4 per cent year-on-year — reflecting continued confidence among buyers financing their purchases. Villa mortgage values rose the fastest, up 35.6 per cent annually to Dh19.8 billion.
Luxury demand holds firm
Dubai’s high-end market continued to draw wealthy buyers from around the world. The ultra-luxury segment — homes priced at Dh50 million and above — recorded 160 transactions in H1 2026, up 12.7 per cent year-on-year, with off-plan ultra-luxury sales climbing 25.6 per cent. The broader luxury segment (Dh20 million-plus) logged 1,093 deals, running 6.2 per cent ahead of H2 2025.
Popular hotspots for apartment buyers included Dubai South, with 7,306 off-plan transactions, and Jumeirah Village Circle, which led the ready-homes segment with 1,065 sales. For villas and townhouses, DAMAC Islands 2 topped off-plan demand with 3,192 transactions, while DAMAC Hills 2 led the ready segment.
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.”
A robust pipeline ahead
Looking further out, Dubai’s development pipeline remains substantial: roughly 47,000 units are slated for delivery in the second half of 2026, with 162,500 more expected in 2027 and 128,200 in 2028. Apartments are set to dominate future supply, comprising 82.5 per cent of units due in H2 2026, concentrated in growth corridors such as Jumeirah Village Circle, Dubai South, Dubai Science Park and Business Bay.
Developers, meanwhile, took a more measured approach to new launches, introducing 124 projects comprising around 28,000 units in H1 2026 — a natural recalibration after 2025’s record-setting 410 project launches. Analysts see this as a sign of a maturing market rather than a slowdown in confidence, with completions increasingly taking centre stage over new announcements.
Economic tailwinds continue
The property sector’s momentum is underpinned by a resilient wider economy. Dubai’s GDP reached Dh232 billion in the first quarter of 2026, up 2.4 per cent year-on-year, with real estate contributing 11.2 per cent of total output and expanding 3.1 per cent annually. With a record volume of new homes now reaching the market, buyers and tenants across Dubai are benefiting from greater choice than at any point in recent years — while the emirate’s fundamentals continue to point toward long-term growth as it moves into the second half of 2026.
Associate Editor Somshankar Bandyopadhyay brings more than three decades of experience to the KT newsroom. Currently, he manages the news production of the business section, ensuring that the top economic and business news of the day reaches its readers.