Dubai’s residential property market recorded stronger activity in July, with sales rising and more buyers returning to ready homes as expectations of further price falls eased.
Property sales transactions increased 3.8% month on month to 9,217 in July, from 8,877 in June, according to data from Property Finder and Mortgage Finder. The total value of transactions rose 5.2% to Dhs 34.9 billion, up from Dhs 33.2 billion.
Ready homes gain
Most of the growth came from the secondary market, where transaction volumes increased about 18% from 4,100 to 4,800. The figures point to stronger demand for completed properties.
Commercial property activity also increased, with transaction volumes rising 24.8% to 397 deals. The total value of commercial transactions reached Dhs 5.8 billion.
Buyer confidence improves
Buyer sentiment also showed signs of improvement. The share of home seekers planning to buy within six months rose from 66% to 68%.
At the same time, the number of buyers expecting prices to fall further dropped from 56% to 52%. This follows a decline from the 73% level recorded immediately after the regional conflict.
The share of buyers expecting prices to remain stable or increase rose from 44% to 48%.
Apartments lead demand
Apartments increased their share of sale leads from 59.5% to 62% in July, mainly driven by studios and one-bedroom units. The trend points to renewed interest from investors seeking more liquid and potentially higher-yield properties.
Mortgage Finder data also showed an increase in investor activity. Investors accounted for 12.8% of mortgage transactions in July, compared with 9% in June.
Applicants earning between Dhs 20,000 and Dhs 59,999 a month accounted for 62.4% of mortgage applications. Meanwhile, buyers earning more than Dhs 60,000 continued to face limited supply of villas and townhouses.
Price gap narrows
Property Finder’s sale-listing price index remained 2.5% below its pre-conflict level for the second month in a row, after asking prices had declined steadily from March.
The gap between advertised and final sale prices also narrowed. It stood at between 5.5% and 11% in July, compared with 6% to 12% in May, suggesting that buyer and seller expectations are moving closer together.
Data from the Dubai Land Department showed a different financing pattern between apartments and villas. Of 2,887 mortgages registered in July, worth Dhs 4.93 billion, apartments accounted for 81.9% of mortgage volume.
However, only 20.3% of apartment sales involved a mortgage, compared with 67.8% of villa sales. The data indicates that apartment purchases are more heavily driven by cash buyers, while villa purchases are more often financed.
Rental activity also remained above pre-conflict levels. New leasing transactions were 2% higher than the baseline, while renewals returned to pre-conflict levels.
Cherif Sleiman, Chief Revenue Officer at Property Finder, said, “July confirms a market that has moved back into growth, with transaction volumes and values rising together and buyers returning with real intent. The more telling signal sits beneath that growth: sellers have paused further price cuts and the gap between asking and achieved prices is narrowing, which brings the two sides of a deal closer together and turns a single strong month into a lasting trend. We expect that momentum to carry through the second half of the year.”
