The Dubai residential market added 24,800 new housing units to its portfolio in the first half of 2026. This figure represents a growth of 37.6% compared to the same period last year and is 12.1% higher than the second half of 2025, according to the latest report from Cavendish Maxwell on the dynamics of the Dubai residential market.
Record Project Delivery Figures
This surge in completed projects marks one of the strongest delivery periods in six months in the emirate's history. Thousands of projects launched during the 2024–2025 boom are now being handed over to buyers. Apartments led the way, accounting for about 18,900 units, which is 43% more than last year. Additionally, 5,900 units of villas and townhouses were added, showing an increase of 22.6%.
Overall, 41.3% of all units scheduled for delivery in the first half of 2026 have been completed, consistent with historical trends, as indicated in the report.
Market Stabilization After Rapid Growth
The flow of delivered properties occurs as the Dubai residential market enters a more stable rhythm after two exceptional years of growth. The total transaction volume for the first half of 2026 reached 79,300, generating revenue of AED 221.4 billion. This amount still exceeds the activity levels recorded before the boom in the first half of 2024.
The market continued to rely on off-plan sales, which accounted for 74.8% of all transactions, covering 59,300 deals. Ready property sales reached 20,000 transactions. Buyers continued to favor new developments, attracted by developers' payment plans, even though the overall pace of activity has slowed compared to the record figures of 2025.
Price and Rental Rate Increases
Despite the moderation in transaction volumes, real estate prices in Dubai have remained stable. The average selling price reached AED 1,639 per square foot by June 2026, which is 1.9% higher than the previous year. Rental rates rose to AED 75.7 per square foot annually, demonstrating a 7.8% year-on-year increase.
Rental yield remains one of the most attractive among major global cities. Apartments provide a gross city yield of 6.9%, while villas and townhouses offer 5.0%. Dubai Investments Park leads all apartment complexes with a yield of 9.7%, and International City leads with 8.9%. Among villa complexes, Dubai Industrial City leads with a yield of 6.4%.
Mortgage lending activity also increased: 22,500 transactions worth AED 51.3 billion, which is 17.4% more than last year, reflecting sustained buyer confidence in financing their purchases. The growth in mortgage value for villas was the fastest, increasing by 35.6% year-on-year to AED 19.8 billion.
Sustained Demand for Luxury
Dubai's high-end segment continues to attract wealthy buyers from around the world. The ultra-luxury segment—properties valued at AED 50 million and above—recorded 160 deals in the first half of 2026, a 12.7% increase compared to last year, with off-plan ultra-luxury sales rising by 25.6%. The broader luxury segment (from AED 20 million) registered 1,093 deals, surpassing the second half of 2025 by 6.2%.
Popular locations for apartment buyers included Dubai South, which saw 7,306 off-plan deals, and Jumeirah Village Circle, which led the ready property segment with 1,065 sales. For villas and townhouses, DAMAC Islands 2 led off-plan demand with 3,192 transactions, while DAMAC Hills 2 led the ready segment.
Ronan Arthur, Director of Property Valuation at Cavendish Maxwell, noted: 'The Dubai residential market shows clear signs of transitioning to a new cycle after the exceptional level of activity over the past two years. The fundamental factors driving demand for real estate in the emirate remain unchanged, but short-term prospects are shaped by a combination of factors—including the impact of fewer launches, regional uncertainty, and the general normalization of buyer activity—which will likely affect transaction levels and price dynamics.'
Extensive Development Plan Ahead
Looking further ahead, Dubai's development plan remains substantial: approximately 47,000 units are scheduled for delivery in the second half of 2026, followed by another 162,500 in 2027, and 128,200 in 2028. Apartments are expected to dominate future supply, making up 82.5% of units delivered in the second half of 2026, concentrated in growth areas such as Jumeirah Village Circle, Dubai South, Dubai Science Park, and Business Bay.
Meanwhile, developers have adopted a more measured approach to new launches, presenting 124 projects encompassing about 28,000 units in the first half of 2026. This is a natural adjustment following the record 410 launches in 2025. Analysts view this as a sign of a maturing market rather than a decline in confidence, as property delivery is becoming an increasingly important priority compared to new announcements.
Economic Support Continues
The momentum in the real estate sector is supported by a robust broader economy. In the first quarter of 2026, Dubai's GDP reached AED 232 billion, a 2.4% increase compared to the previous year. Real estate contributed 11.2% of the total output and expanded by 3.1% annually. Thanks to the record volume of new housing entering the market, buyers and renters across Dubai have greater choice than ever before in recent memory, while the emirate's fundamental indicators point towards long-term growth as it transitions into the second half of 2026.
