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Dubai's residential property market recorded transactions worth AED 225.7 billion during the first half of 2026, marking a 16% decline from the record levels seen a year earlier, according to Anarock. The consultancy attributed the slowdown to geopolitical tensions in West Asia, which temporarily affected buyer sentiment during March and April. Residential property prices softened by 4–7% between February and April before stabilising, while average prices remained higher than a year earlier at around AED 1,900 per sq ft. Anarock said the market recovered steadily following ceasefire efforts, supported by sustained demand and strong structural fundamentals.
Dubai's residential property market recorded housing transactions worth AED 225.7 billion during the first half of 2026, registering a 16% year-on-year decline from the exceptionally strong performance of 2025, as geopolitical tensions in West Asia temporarily affected buyer sentiment, according to real estate consultancy Anarock.
The consultancy, which operates in both India and the UAE, said transaction value during the January–June period was still 15% higher than the corresponding period in 2024, indicating that market activity remained above pre-2025 levels despite the slowdown.
According to Anarock, residential property prices declined by between 4% and 7% during the February to April period, when regional geopolitical tensions weighed on investor confidence. However, the consultancy noted that the correction was largely driven by market sentiment rather than any deterioration in underlying fundamentals.
Aayush Puri, Chief Executive Officer – Residential, Middle East, Anarock, said the conflict in West Asia tested Dubai's residential market at a time of heightened regional uncertainty. He stated that buyer activity recovered steadily in the following months as ceasefire efforts progressed, while property prices remained resilient and demand continued to be supported by long-term market fundamentals rather than speculative activity.
Despite the temporary correction, average residential property prices in Dubai remained above year-earlier levels. During the first half of 2026, average prices stood at around AED 1,900 per sq ft compared with approximately AED 1,800 per sq ft during the corresponding period of 2025.
The consultancy observed that the market's recovery reflected sustained investor confidence following the easing of geopolitical concerns. Demand strengthened after the period of uncertainty, enabling residential prices to remain relatively stable despite the earlier decline.
Anarock's data also highlighted the strength of Dubai's residential market during the previous calendar year. Residential property sales reached a record AED 547 billion across 206,166 transactions in 2025, reflecting continued interest from international investors.
International buyers continued to play a significant role in the market. Investors from more than 150 countries purchased residential properties in Dubai during 2025. Indian buyers accounted for the largest share of transactions at 22%, followed by buyers from the United Kingdom at 17% and China at 14%.
The consultancy further noted that more than 129,600 new investors entered Dubai's residential property market during 2025, representing an annual increase of 23%, underscoring the emirate's continued appeal as an international real estate investment destination despite periodic geopolitical disruptions.
Source - PTI
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