Dubai’s rental transactions rose 16% in Q3 2026, while demand for completed homes strengthened and prime property prices remained higher than a year earlier, according to Savills Middle East.
Dubai ready-property market gains momentum
Dubai recorded approximately 34,500 residential property sales in the third quarter of 2026, with total transaction value reaching Dhs 70.8 billion, according to Savills Middle East’s latest Dubai Residential Market in Minutes report.
Completed homes gained traction during the quarter, with ready-property transaction values increasing from Dhs 21.3 billion in Q2 to Dhs 25.1 billion in Q3.
The off-plan market recorded around 5,000 new residential unit launches during the quarter, compared with approximately 36,400 in the previous three months. Savills said the moderation in overall transaction activity was largely concentrated in the off-plan segment, reflecting fewer new project launches rather than a broad-based weakening in demand.
Andrew Cummings, Head of Residential Agency at Savills Middle East, said: “Dubai’s residential market is becoming more selective following several years of strong growth. Buyers are placing greater emphasis on pricing, location, quality and long-term value, while developers are taking a more measured approach to new launches.
“What’s encouraging is the continued demand for completed properties and the resilience of the prime segment. As the market becomes more balanced, well-located, quality homes that are priced appropriately should continue to attract interest from both end-users and investors.”
Prime Dubai property prices remain above year-ago levels
Dubai’s prime residential market continued to show year-on-year price growth in Q3.
Prime apartment prices averaged Dhs 5,237 per square foot, up 4% compared with the same period last year. Prime villa and townhouse prices rose 3.6% year-on-year to Dhs 2,791 per square foot.
The quarter also saw several high-value property sales, including a Palm Jumeirah villa sold for Dhs 260 million, a villa in Dubai Hills Estate for Dhs 252 million and an apartment at Aman Residences for Dhs 166 million.
Across the wider market, average apartment prices stood at Dhs 1,817 per square foot, while villas and townhouses averaged Dhs 1,523 per square foot.
Savills said like-for-like analysis showed apartment prices declining by just 1.7%, while villa and townhouse prices remained unchanged. This indicates that changes in the mix of properties sold influenced the overall price averages.
Dubai rental transactions climb 16%
Dubai recorded approximately 181,900 rental transactions in Q3, up 16% from the previous quarter.
New leases accounted for 44% of rental activity, compared with 36% in Q2. Rental rates across selected communities also showed early signs of stabilisation, although trends varied by location.
The figures point to continued activity in Dubai’s rental market, with new tenancy agreements making up a larger share of transactions during the quarter.
Developers take a measured approach to new homes
Approximately 50,000 residential units were launched in Dubai during the first nine months of 2026, around 64% fewer than in the same period last year.
Developers are increasingly focusing on phased launches, property positioning and flexible payment plans.
Savills expects lower launch activity and delayed completions to help moderate immediate supply pressures. However, more than 525,000 units are currently scheduled for delivery between 2027 and 2030, making population growth, household formation and individual project characteristics important factors for future demand.
The report highlights continued activity in Dubai’s rental market, growing transaction values for completed homes and year-on-year price gains in the prime segment as the residential market adjusts to changing buyer and developer priorities.
