ОАЭ
Dubai’s residential property market has shifted toward more moderate growth after several years of strong expansion. In August 2026, the average residential property price stood at AED 1,636 per square foot. This was 1.7% lower than in August last year and 1.3% below the level recorded three months earlier.
The annual decline in prices was the first recorded since February 2021. Analysts view this trend as a transition toward a more mature and balanced phase of the market rather than the beginning of a sharp fall in property values.
Despite the slight price correction, market activity remains high. Around 10,900 residential properties worth a combined AED 23.4 billion were sold in Dubai in August. Compared with July, the number of transactions fell by approximately 14%, partly reflecting the traditional seasonal slowdown in buyer activity during the summer months.
During the first eight months of 2026, the total value of residential property transactions approached AED 270 billion. However, this figure was 24% lower than during the same period in 2025, which was characterized by particularly strong buyer activity and a large number of new project launches.
Off-plan property remains the main driver of the market. Properties under construction accounted for approximately 75% of all sales in August. The high share of the primary market indicates that buyers continue to show interest in new residential developments, flexible payment plans, and properties with potential for value appreciation after completion.
Experts attribute the market slowdown to fewer new project launches, increasing supply, and a more considered approach among buyers. Following an extended period of growth, sellers and developers are having to pay closer attention to pricing, payment terms, and project quality.
For buyers, a moderate correction may mean a wider choice of properties and additional opportunities for negotiation. However, the 1.7% decline in the average price does not mean that property values have fallen across all areas of Dubai. Performance varies depending on location, property type, construction stage, developer reputation, and rental demand.
Investors are advised to consider not only the current price per square foot but also expected returns, future supply in the area, and the property’s resale potential.
