Dubai’s residential property market recorded its first year-on-year price decline since February 2021, according to real estate consultancy Cavendish Maxwell. Average sale prices in August 2026 stood at AED1,636 per square foot, down 1.7% from a year earlier and 1.3% lower than three months ago.
Residential sales values reached AED23.4 billion in August, with year-to-date transactions totalling nearly AED270 billion — 24% lower in value than the same eight months of 2025. Roughly 10,900 homes changed hands in August, about 14% fewer than in July, a drop the firm attributed partly to the usual summer slowdown in buyer activity. Off-plan properties accounted for approximately 75% of the month’s sales.
Ronan Arthur, Cavendish Maxwell’s Head of Residential Valuation, said the market is moving into “a more measured phase” after a prolonged run of exceptionally strong sales and sustained price growth. He said the August data confirms the firm’s view that prices are softening as the market enters a more mature cycle. Underlying demand fundamentals remain intact, Arthur added, but the near-term outlook will be shaped by fewer new project launches, regional uncertainty, and a broader normalisation in buyer activity.
References
IndexBox – Dubai Residential Prices Decline 1.7% YoY in August 2026 (Cavendish Maxwell data)
