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Dubai property sales reach Dh87.9 billion despite slowdown in transactions
While the off-plan segment continued to dominate in terms of transaction volumes, it still recorded lower activity in the second quarter
- PUBLISHED: Thu 23 Jul 2026, 4:57 PM
Dubai recorded Dh87.9 billion in property sales in the second quarter, despite a slowdown in transaction volumes due to regional geopolitical tensions. Abu Dhabi’s residential market remained resilient, showing stronger price growth and sustained demand for off-plan homes.
Both emirates are expected to deliver approximately 40,000 residential units in the second half of 2026. Government initiatives to improve housing affordability and introduce flexible rental policies continue to support the market, according to JLL.
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Off-plan still dominates despite slowdow
Due to regional conflict, transaction volumes in Dubai declined sharply across both off-plan and secondary markets, falling 28.6 percent year-over-year.ar.
The off-plan segment continued to lead in transaction volumes but recorded lower activity in the second quarter, with annual and quarterly decreases of 23.1 percent and 14.7 percent, respectively.
The resale segment experienced the largest decline, dropping 41.8 percent year-over-year and 30.3 percent from the previous quarter.
In Abu Dhabi, total sales transactions increased year-over-year in the second quarter, mainly driven by off-plan market activity. In contrast, secondary market transactions declined by 18.1 percent during the same period.
Quarter-on-quarter, off-plan sales contracted by 5.6 percent, indicating a slowdown in market momentum.
Moderate sales price growth
Dubai's residential market experienced moderate price growth, with annual increases of 2 to 6 percent across property categories and villas showing the highest gains. However, prices declined by 2 to 3 percent quarter-on-quarter, with apartments seeing the largest decreases.
Abu Dhabi's sales prices were more resilient, with double-digit annual increases. Growth was strongest in apartments (up 19.4 percent) and townhouses (up 11.2 percent). Quarter-on-quarter, townhouse prices rose by approximately 6.0 percent, while apartment and villa prices declined by 7.8 percent and 5.1 percent, respectively.
Governmental initiatives
In the second quarter, the governments of Dubai and Abu Dhabi accelerated efforts to improve rental affordability. In June, Abu Dhabi introduced rent freezing, temporarily pausing rental increases for new and renewed leases on previously rented units.
In Dubai, the Dubai Land Department launched the Flexi Rent initiative, allowing tenants to pay rent monthly, quarterly, or semi-annually, easing their financial burden.
JLL stated that these policy interventions indicate a regional shift toward greater rental market accessibility and tenant-focused flexibility.
“For savvy investors and occupiers, this evolving landscape creates distinct opportunities. Combined with the UAE's strong economic fundamentals, the market remains robust and well-positioned for continued growth,” said Mouhammad Takieddin, JLL’s Regional Head and CEO of Middle East and Africa.
Hind Aldah is a business reporter based in Sharjah. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.