Dubai Residential Market Report — August 2026

Dubai recorded 11,294 residential sales transactions in August 2026, with a total value of AED 24.03 billion. Transaction activity declined 16.3% month on month, while total value fell 18.8%. Average transaction pricing remained relatively stable at AED 1,793 per sq.ft. Off-plan transactions continued to dominate, representing 68.8% of residential sales.

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August 2026 Institutional Market Watch Summary

Dubai recorded 11,294 residential sales transactions in August 2026, with a total value of AED 24.03 billion. Transaction activity declined 16.3% month on month, while total value fell 18.8%. Average transaction pricing remained relatively stable at AED 1,793 per sq.ft. Off-plan transactions continued to dominate, representing 68.8% of residential sales.

The Dubai market remained strongly apartment- and off-plan-led. Apartments recorded 9,638 transactions worth AED 15.37 billion, while off-plan sales accounted for 7,774 transactions worth AED 13.59 billion. Ready properties recorded 3,520 transactions worth AED 10.43 billion.

Abu Dhabi recorded 2,028 residential transactions worth AED 11.12 billion. Off-plan activity accounted for 78.8% of transactions, with 1,599 off-plan deals worth AED 9.91 billion. Villas and apartments were the main transaction segments, with villas recording the larger share of total transaction value.

Pricing & Yield

Dubai's headline residential sale price was AED 1,793 per sq.ft. The transaction-weighted headline gross rental yield was 8.72%. Apartments generated a gross yield of 9.02%, compared with 4.58% for villas. Cap rates were not calculated because verified operating-expense and net operating income data were unavailable.

Market Structure & Liquidity

Dubai liquidity remained concentrated in high-activity apartment and off-plan projects, with Madinat Al Mataar, City of Arabia and Jumeirah Village Circle among the strongest transaction corridors. Abu Dhabi liquidity remained concentrated in selected off-plan, villa-led communities and flagship projects.

Micro-Market Highlights

Madinat Al Mataar was Dubai's largest transaction corridor, accounting for 16.2% of market activity with 1,832 transactions. City of Arabia and Jumeirah Village Circle followed at 6.8% and 6.6% market share respectively. Business Bay stood out for rental activity, with 2,415 rental registrations.

Risk Assessment

The main market risks were softer month-on-month transaction activity, high off-plan concentration, and moderate geographic concentration. Rental activity remained stable, with new and renewed leases broadly balanced. Mortgage leverage, future supply delivery, and regulatory risk were classified as Not Assessed where verified source data were unavailable.

Methodology

All published numerical market metrics are derived from imported Dubai Land Department (DLD) sales and rental records and Abu Dhabi Real Estate Centre (ADREC) sales records. AI is used only for narrative interpretation of database-derived metrics and is not used as the source of published numerical figures.