Dubai Property Market Shows Resilience Amid Regional Tensions in 2026
Khaleej Times
Despite regional conflicts, Dubai’s property market remains robust with stable transactions and sustained investor confidence in Q2 2026.
Dubai Property Market Maintains Stability Despite Regional Conflicts
Dubai's real estate sector has demonstrated remarkable resilience in the face of renewed geopolitical tensions in the region. According to Betterhomes, a leading real estate agency, the property market has not experienced an immediate slowdown in activity even as regional hostilities escalated.
Second Quarter Transaction Volumes Reflect Past Conflict Impact
Transactional volumes for the second quarter of 2026 totaled approximately 34,800 deals, marking a 31 percent year-on-year decrease. However, Betterhomes CEO Richard Waind emphasized that this decline relates to transactions registered during the peak months of the conflict earlier in the year rather than the current market environment. He noted that property deals typically take several weeks to complete, affecting how recent geopolitical events are reflected in statistics.
"If we're seeing transactions down 30 per cent today, that's not really surprising when we look back into March and April, where we ourselves at Betterhomes witnessed a new deal drop by 70 to 80 percent during that acute period," Waind explained during the company’s quarterly market webinar.
Interestingly, market activity over the past week appeared robust, with Waind stating, "In terms of the immediate impact on the market, we haven't seen too much. In fact, the transactions over the last couple of days have been very, very strong."
Recovery Signs and Investor Confidence
The market showed recovery signs within Q2. Registered transactions hit a low of around 9,000 in May before rebounding to about 13,000 in June. Betterhomes reported that June's secondary market transactions reached 95 percent of the June 2025 figures, signaling ongoing investor confidence in Dubai's real estate sector.
Pricing Trends and Market Composition
Average property values declined from approximately Dh1,850 per square foot at the beginning of the quarter to Dh1,688 by the end, reflecting a roughly 7 percent decrease. Waind highlighted that prices have remained more stable than expected, noting the absence of widespread panic selling.
"There are a lot more end-users in the market and a lot more people holding on to their properties," he observed.
Off-plan properties continued to dominate the market, comprising more than three-quarters of all transactions during Q2. Although off-plan sales volumes decreased by about 12 percent year-on-year and their value dropped by 15 percent, Harry Martin, Director of Off-Plan and Capital Markets at Betterhomes, affirmed strong investor confidence in this segment.
Development and Supply Adjustments
Despite regional disruptions, developers are on track to deliver around 75,000 units in 2026. However, new project launches slowed sharply, with only approximately 5,000 units introduced in the second quarter compared to about 45,000 in the first. Martin suggested this slowdown may benefit market maturity by curbing excess supply and helping price stabilization.
Luxury Segment Experiences Sharpest Slowdown
The luxury market, defined by properties priced above Dh15 million, felt the heaviest impact with a 59 percent year-on-year drop in transactions, totaling 578 deals. Waind attributed this decline primarily to fewer international investors and tourists during this interval.
"We've seen a lot fewer tourists and international investors in town," he said. "We expect these numbers to start recovering in September and October."
Despite the quarterly slowdown, Dubai continues to outperform other global luxury markets. During the first half of 2026, Dubai recorded nearly 300 residential transactions exceeding $10 million, far surpassing London's 16 such transactions in the first quarter.
Conclusion for Real Estate Agents
Dubai’s property market remains resilient amid regional uncertainties, with strong off-plan demand and recovery signs. Agents should remain attentive to improving international investor presence as travel normalizes and capitalize on opportunities in the stabilizing luxury segment. Keeping clients informed about market nuances and the positive outlook will be key to sustaining confidence and transaction momentum.
Based on reporting from Khaleej Times. Summary and analysis by Propilot AI.
Loading...