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Dubai property market sees no immediate impact from renewed regional tensions, says Betterhomes
Although transaction volumes fell during the second quarter of 2026, the agency said this reflected deals agreed during the peak of the regional conflict rather than current market conditions
- PUBLISHED: Thu 16 Jul 2026, 2:22 PM
Dubai's property market has shown resilience despite renewed regional hostilities, with no immediate slowdown in activity, according to real estate agency Betterhomes.
Although transaction volumes fell during the second quarter, the agency said this reflected deals agreed during the peak of the regional conflict rather than current market conditions.
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Transactional volumes reached about 34,800 deals in the second quarter of 2026, down 31 per cent year-on-year. However, the agency’s CEO, Richard Waind, said the figures should be viewed in context as property transactions typically take several weeks to be registered.
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"If we're seeing transactions down 30 per cent today, that's not really surprising when we look back into March and April, where we at Betterhomes ourselves saw our new deals drop by 70 to 80 per cent during that really acute period," he said during the company's quarterly market webinar.
Waind added that recent geopolitical escalations have not affected activity over the past week. "In terms of the immediate impact on the market, we haven't seen too much. In fact, the transactions over the last couple of days have been very, very strong," he said.
44 per cent recovery
The market also showed signs of recovery through the quarter. Registered transactions hit a low of about 9,000 in May before recovering to around 13,000 in June. Betterhomes said it agreed 95 per cent of the number of secondary market transactions recorded in June 2025, a sign that investors remain confident in Dubai's property market.
On pricing, average values declined from around Dh1,850 per square foot to Dh1,688 by the end of the second quarter, representing a fall of roughly 7 per cent. However, Waind said prices had held up better than many expected as the market has not experienced widespread panic selling.
"There are a lot more end-users in the market and a lot more people holding on to their properties," he said.
Off-plan market remains dominant
Off-plan properties continued to account for more than three-quarters of all transactions during the second quarter, the agency said.
While off-plan sales volumes declined by around 12 per cent year-on-year and the value of those transactions fell 15 per cent, director of off-plan and capital markets, Harry Martin, said investor confidence in the segment remains strong.
Moreover, developers remain on track to deliver around 75,000 units this year despite regional disruptions, he added.
He noted, however, that new project launches slowed considerably, with around 5,000 units launched in the second quarter compared with about 45,000 in the first quarter.
Martin said the slowdown could help the market mature by reducing excess supply and allowing prices to stabilise.
Luxury homes see biggest decline
Dubai's luxury property segment, defined as homes priced above Dh15 million, recorded the sharpest slowdown during the quarter.
Transactions in the segment fell 59 per cent year-on-year to 578 deals, compared with the overall market decline of 31 per cent.
Waind attributed the slowdown to fewer international investors and tourists visiting Dubai during the period.
"This has been a period where we've seen a lot fewer tourists in town and a lot less international investors coming to town," he said. "I think we're going to start to see those numbers recover as we move into September and October."
Despite the quarterly decline, Martin said Dubai continues to outperform global luxury markets.
The emirate recorded almost 300 residential transactions worth more than $10 million during the first half of 2026, compared with just 16 such transactions in London during the first quarter.
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.