Dubai Adds 24,800 New Homes in H1 2026 Amid Price and Rent Adjustments
Gulf News
Dubai’s residential market saw 24,800 new homes delivered in H1 2026 with prices and rents easing slightly while growth steadies.
Dubai's Residential Market Expands with 24,800 New Homes in H1 2026
Dubai welcomed 24,800 new homes in the first half of 2026, significantly boosting options for buyers and tenants. This reflects a 38% increase in completed homes compared to the same period last year, and a 12% rise compared to the second half of 2025, according to Cavendish Maxwell.
Pricing and Rental Trends Reflect a Market Transition
Sales prices for residential properties softened by 2.6% from the previous quarter, while rental rates dipped by 2.5%. Despite these quarterly declines, prices still remain about 2% higher than their level a year ago, with rents increasing 7.8% annually. This indicates a shift into a steadier growth phase after two years of heightened market activity.
Supply and Launch Activity
The strong supply comes as projects launched during Dubai's recent expansion phase reach completion, marking the strongest half-year for deliveries in several years. In contrast, new project launches have slowed down considerably, with just 28,000 units launched across 124 projects in H1 2026 compared to 102,000 units from 410 launches a year earlier. This slowdown is partly attributed to regional uncertainties causing some developers to postpone projects in Q2.
Ronan Arthur, Director and Head of Residential Valuations at Cavendish Maxwell, commented, “Dubai’s residential market is showing clear signs of transitioning to a new cycle following exceptional levels of activity over the last two years.”
Transaction Volumes and Market Activity
During H1 2026, Dubai recorded 79,300 residential transactions valued at Dh221.4 billion. Transaction volumes dropped 14% year-on-year and were 27% below the record levels seen in H2 2025. Sales values declined by 16% annually and 20% compared to the previous six months.
Off-plan properties dominated the market, making up nearly 75% of all transactions, and developer sales represented over 92% of this segment. Initial off-plan sales totaled 54,700 transactions, just a slight 1.5% reduction from last year, whereas off-plan resales decreased sharply by 51% to 4,600 transactions.
Ajay Rajendran, Founder and Chairman of Meraki Developers, observed, “Buyers aren't stepping away, they're simply targeting higher value inventory.”
Future Supply Outlook
Looking ahead, about 47,000 units are expected to complete in the second half of 2026. However, Cavendish Maxwell anticipates actual handovers will likely range between 14,000 and 23,500 homes, based on historical delivery patterns. Apartments are predicted to represent over 82% of these deliveries.
Key areas set to record significant supply include Jumeirah Village Circle, Dubai South, Dubai Science Park, Business Bay, Downtown Dubai, and Dubai Healthcare City, together accounting for nearly 37% of upcoming completions.
The longer-term pipeline remains robust, with 162,500 units planned for 2027 and another 128,200 for 2028.
Transaction and Yield Insights
Across both ready and off-plan segments, apartments made up approximately 84% of transactions. Dubai South led off-plan apartment sales with 7,306 deals, followed by Dubai Residence Complex (3,408) and Jumeirah Village Circle (3,055). For ready apartments, Jumeirah Village Circle led with 1,812 transactions. Off-plan villa and townhouse sales were led by DAMAC Islands 2 with 3,192 deals.
Gross rental yields during the first half averaged nearly 7% for apartments and about 5% for villas and townhouses. Mortgage transactions grew by 7.2% to 22,500, while sales of homes priced above Dh50 million rose 13% to 160 transactions.
Implications for Real Estate Agents
Market dynamics in Dubai now reflect a maturing cycle following a high-growth period. The increase in available homes offers clients more variety, though the moderate easing of prices and rents suggests agents may need to recalibrate pricing strategies. Focus on high-value properties and off-plan opportunities remains critical as buyers shift toward quality inventory. Agents should also be aware of the concentrated delivery schedule and key areas where supply growth is expected.
Based on reporting from Gulf News. Summary and analysis by Propilot AI.
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