Dubai’s residential property market regained momentum in June after a slower start to the second quarter, with home prices remaining firm and the market recording its third-strongest second quarter on record, according to Betterhomes’ Q2 2026 Dubai Residential Market Report.
The report said property transactions were worth Dhs84.9 billion during the quarter. Activity picked up sharply in June, with monthly transactions rising 28 per cent from May following a quieter period during the Eid Al Adha holiday.
Prices remain firm
Home prices continued to increase across most communities despite lower transaction volumes. Among the strongest performers were Palm Jumeirah Garden Homes, where prices per square foot rose 37 per cent year-on-year, and Jumeirah Islands, which recorded a 20 per cent increase.
“The second quarter provided greater clarity on Dubai’s residential market. Regional tensions understandably caused some buyers to pause, delaying decisions rather than changing them, and activity recovered quickly as conditions stabilised. Perhaps the most encouraging aspect of the quarter was the resilience of pricing: we saw little evidence of distressed selling, and owners remained confident enough in Dubai’s long-term prospects to hold their assets rather than compromise on value. June also recorded the highest number of tenancy contracts ever signed in Dubai, which reflects real confidence in Dubai as a place to live, work and invest,” said Richard Waind, CEO, betterhomes.
Off-plan demand
Off-plan projects accounted for 76 per cent of all residential transactions during the quarter, with 26,338 sales.
Across Dubai Land Department transactions, apartments recorded an average sale price of Dhs1.79 million, while townhouses averaged Dhs3.65 million and villas Dhs13.77 million.
The report said around 74,100 homes are expected to be completed across Dubai this year, with apartments making up most of the upcoming supply.
Rental strength
Dubai’s rental market continued to show strong demand during the quarter.
Tenant enquiries increased 20 per cent year-on-year and 18 per cent compared with the previous quarter, while average rents remained 3.1 per cent higher than a year earlier. Villa rents rose 5.7 per cent year-on-year to an average of Dhs281,633.
“One of the defining features of the leasing market in Q2 was its resilience. Tenant enquiries were up 20% year-on-year and 18% quarter-on-quarter, as more people held off buying and stayed in the rental market instead. With more stock on the market, tenants have real choice now, and that’s putting pressure on new rents. The properties that are priced right and presented well are still leasing fast; the ones that aren’t are taking longer,” added Rupert Simmonds, Director of Leasing, betterhomes.
tanvir@dubainewsweek.com
