Dubai property sales recovered 38% from a three-year monthly low over the summer, according to an analysis of Dubai Land Department (DLD) data by brokerage Betterhomes reported by Arabian Business. Transactions fell to 9,536 in May, the lowest monthly total in three years, before climbing 28% month-on-month to 12,185 in June and reaching 13,116 in July. Sales then eased to 11,087 in August. Prices held up through the swings: price per square foot was higher year-on-year in 81% of the communities Betterhomes tracks, with a median increase of 6.6%, led by Palm Jumeirah Garden Homes villas (+37%) and Al Jaddaf apartments (+35.5%).
The figures bear on buyers, owners and landlords across the emirate. Off-plan homes made up between 71% and 76% of monthly sales from May to August, and off-plan villa and townhouse sales rose 27% year-on-year in the second quarter, with transaction value up 83%. Luxury off-plan deals above AED15 million (US$4.1 million) were 12% higher year-on-year in August. On the rental side, Betterhomes recorded more than 40,000 new and renewed tenancy contracts in June, which it described as the highest monthly figure on record for Dubai; average rents were 3.1% higher year-on-year, with Jumeirah Islands up 25%.
The rebound follows a marked slowdown. Betterhomes’ second-quarter report attributed the May trough to regional uncertainty and the timing of the Eid Al Adha holiday, and put Q2 residential transactions at 34,850, down 31% year-on-year. DLD figures reported by Zawya show August volumes were still 37% below August 2025, with sale values down 44%. Richard Waind, chief executive of Betterhomes, said the summer showed “the difference between demand disappearing and demand being delayed”, adding that buyers “came back quickly once confidence returned”.
On the outlook, Betterhomes expects around 74,100 homes to be completed in Dubai in 2026, weighted towards apartments, with roughly 160,700 units potentially entering the market in 2027. It said the extra supply is unlikely to affect every area equally: apartment-heavy communities with large volumes of similar stock could see more competition between sellers and landlords, while villa and townhouse supply remains comparatively limited. Waind said the best properties “should continue to hold up well” but that a clearer gap would open between well-positioned and weaker parts of the market, and Rupert Simmonds, the firm’s director of leasing, said landlords would need to pay closer attention to pricing and property quality as more rental stock arrives.
References
Arabian Business – Dubai property sales rebound 38% from three-year low as prices rise in 81% of communities / Betterhomes – Q2 2026 Dubai Residential Market Report / Zawya – Dubai data shows August property deals down 37%; market now more selective
