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Dubai property handovers hit multi-year high as new launches slow
Dubai developers launched only 5,335 residential units during Q2, compared with more than 45,000 units in the previous quarter, as they increasingly adopted phased project releases
- PUBLISHED: Thu 16 Jul 2026, 9:43 AM UPDATED: Thu 16 Jul 2026, 11:39 AM
Dubai's residential market recorded its highest quarterly delivery of new homes in recent years during the second quarter of 2026, even as developers significantly slowed the pace of new project launches to create a more balanced supply pipeline, according to a new report by Savills.
Approximately 27,300 homes were completed during the quarter, including around 17,400 apartments and 9,900 villas and townhouses, substantially increasing the availability of ready homes, particularly for families.
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In contrast, developers launched only 5,335 residential units during Q2, compared with more than 45,000 units in the previous quarter, as they increasingly adopted phased project releases and extended delivery timelines from around three years to four years. Savills said the strategy is expected to spread future supply over a longer period and reduce near-term absorption pressure.
Market shifts into more balanced phase
The report said Dubai's residential market is transitioning into a more measured stage after several years of exceptionally strong growth.
Residential transactions totalled 35,884 during the second quarter, down 19 per cent from the previous quarter as buyers became more selective amid rising supply, greater housing choice and a more cautious investment environment. Off-plan properties continued to dominate activity, accounting for 76 per cent of all residential transactions.
The report also found that refinancing activity increased sharply during the quarter, accounting for around 70 per cent of all valuation instructions by the end of Q2, compared with historical levels of about 30 per cent. Savills said the trend indicates that many homeowners remain confident in Dubai's long-term property market and are choosing to refinance rather than sell.
Andrew Cummings, Head of Residential Agency at Savills Middle East, said the market is normalising rather than entering a broad-based correction.
"Demand remains present, particularly for well-located, high-quality homes and established communities, but purchasers now have greater choice and are taking more time to make decisions," he said.
Prices and rents moderate
As more completed homes entered the market, apartment prices eased around 4 per cent quarter on quarter to an average of Dh1,960 per square foot, while villa and townhouse prices slipped 0.8 per cent to Dh1,646 per square foot. Savills' analysis of comparable transactions suggests underlying price adjustments of 5 to 7 per cent in many communities, although prices remain above year-earlier levels.
Dubai's rental market also moved towards rebalancing during the quarter. Annual Ejari registrations fell by around 22 per cent, while rents across major residential communities declined by an average of 8 to 10 per cent as increasing supply gave tenants greater choice.
Despite the broader moderation, Dubai's luxury residential market remained resilient. Transactions worth more than Dh10 million totalled 864 during the quarter, with Palm Jumeirah, Dubai Hills Estate and Jumeirah Golf Estates continuing to dominate activity. The quarter also witnessed a record Dh280 million villa sale on Jumeirah Bay Island, highlighting continued demand for trophy waterfront homes and premium branded residences.
Savills said Dubai's long-term residential outlook remains positive, supported by population growth, inward migration, infrastructure investment and ongoing residency reforms. The consultancy also highlighted the recent approval of Dubai's Dh34 billion Metro Gold Line and enhancements to property-linked residency rules as key factors expected to support long-term demand and reinforce the emirate's appeal to international investors.
