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Dubai Home Sales Fall 16% in H1 2026 Even as Property Prices Continue to Rise

  • by- Zaid
  • Jul 13, 2026
Dubai recorded AED 225.7 billion in residential property transactions during H1 2026, down 16.1% from a year earlier, while average home prices continued to rise. A new report also highlights the continued dominance of Indian buyers in the market.
Dubai Home Sales Fall 16% in H1 2026 Even as Property Prices Continue to Rise

DUBAI | July 13, 2026: Dubai's residential real estate market witnessed a slowdown in transaction value during the first half of 2026, although home prices continued to move higher, according to a new market report.

The report shows that housing transactions reached AED 225.7 billion during H1 2026, compared with AED 269.1 billion in the corresponding period of 2025, representing a 16.1% year-on-year decline. However, transaction value remained 14.7% higher than H1 2024, indicating that market activity continues to stay above pre-2025 levels.

 

Property Prices Continue to Move Up

Despite softer transaction volumes, residential values remained resilient.

Average housing prices reached approximately AED 1,900 per square foot during the first half of 2026, around 6% higher than the average recorded during the same period last year.

The report noted that geopolitical uncertainty temporarily affected buyer sentiment, but the overall correction in residential prices remained limited.

 

Indian Buyers Continue to Lead Foreign Demand

Indian buyers remained the largest overseas investor group in Dubai's residential market.

According to the report:

  • Indian buyers accounted for 22% of residential purchases during 2025.
  • Buyers from the United Kingdom represented 17%.
  • Chinese buyers accounted for 14%.

The report also highlighted that buyers from more than 150 countries participated in Dubai's housing market.

 

 

Cash Purchases Continue to Support the Market

Investor participation remained strong.

During 2025:

  • More than 129,600 new investors entered Dubai's residential market.
  • Around 80% of housing transactions were completed through cash purchases, reducing exposure to interest-rate fluctuations.

 

Off-Plan Homes Remain Popular

Under-construction projects continued to attract buyers.

The report estimates that off-plan properties accounted for roughly 70% to 77% of residential transactions during the period, reflecting sustained demand for newly launched developments.

 

 

Why the Market Remained Resilient

The report suggests that geopolitical developments temporarily affected market sentiment rather than causing structural weakness.

While transaction activity moderated during parts of the year, residential property prices experienced only limited correction before stabilising.

 

Why It Matters

Dubai continues to attract international homebuyers and investors because of its diversified buyer base, strong off-plan market and sustained demand for residential assets.

For Indian investors considering overseas property, the latest figures indicate that while transaction activity has slowed from last year's peak, Dubai's residential market continues to show relative resilience compared with previous global downturns.