Dubai adds 24,800 new homes in biggest delivery surge for years as property market shifts gears
Dubai completed 24,800 new homes in H1 2026 as deliveries jumped 38 per cent, while sales slowed and developers launched fewer projects, says Cavendish Maxwell.
Dubai completed 24,800 new homes in the first half of 2026, marking the strongest half-year delivery period in several years as projects launched during the emirate’s property boom reached completion, according to Cavendish Maxwell.
The residential property market recorded a nearly 38 per cent increase in completed homes compared with the same period last year and a 12 per cent rise on the second half of 2025. The consultancy said the figures point to a market transitioning from a launch-led cycle to one increasingly driven by project deliveries, even as sales activity moderated from recent record highs.
Cavendish Maxwell said 24,800 residential units were completed during H1 2026.
While completions accelerated, developers launched fewer new projects.
A total of 28,000 homes were launched across 124 developments during the first six months of the year, compared with 102,000 units across 410 launches in H1 2025.
Dubai real estate trends
The consultancy said the moderation began before regional tensions emerged, with fewer launches already recorded during the first quarter following exceptionally high development activity in 2024 and 2025. The slowdown became more pronounced in the second quarter as heightened regional uncertainty prompted some developers to postpone launches.
Dubai recorded 79,300 residential sales transactions in H1 2026.
That represented:
- Nearly 14 per cent fewer transactions than H1 2025
- 27 per cent below the record levels achieved in H2 2025
Residential sales values totalled AED221.4bn ($60.3bn) during the first half of the year.
Off-plan sales accounted for almost AED166bn ($45.2bn), while ready property transactions totalled AED55.5bn ($15.1bn).
Overall residential sales values were nearly 16 per cent lower than a year earlier and 20 per cent below H2 2025.
Market entering ‘new cycle’
Ronan Arthur, Director, Head of Residential Valuations at Cavendish Maxwell, said: “Dubai’s residential market is showing clear signs of transitioning to a new cycle following exceptional levels of activity over the last two years. The fundamentals that drive real estate demand in the emirate remain intact, but the near-term outlook is being shaped by a combination of factors, including the impact of fewer launches, regional uncertainty and a broader normalisation in buyer activity, that are likely to influence transaction levels and price performance.”
Developer sales continued to dominate the off-plan market, accounting for more than 92 per cent of transactions.
Apartments remained the most popular property type, representing around 84 per cent of transactions across both off-plan and ready markets.
Top off-plan apartment locations
- Dubai South: 7,306 transactions
- Dubai Residence Complex: 3,408
- Jumeirah Village Circle: 3,055
- Dubai Islands: 2,891
- Majan:2,402
- Jumeirah Village Circle: 1,812 transactions
- Business Bay: 1,065
- Dubai Marina: 778
- Downtown Dubai: 613
- Dubai Creek Harbour: 607
- DAMAC Islands 2: 3,192 transactions
- The Heights Country Club and Wellness: 898
- The Oasis: 583
- Lunaya: 360
- Grand Polo Club and Resort: 343
- DAMAC Hills 2: 410 transactions
- Dubai South: 190
- DAMAC Lagoons: 185
- The Valley: 176
- The Springs: 168
Residential sales prices averaged AED1,639 ($446) in June 2026. Prices fell 2.6 per cent compared with Q1 2026 and increased by just under 2 per cent year-on-year.
Annual sales price growth slowed sharply from more than 12 per cent in December 2025 to 1.9 per cent by June 2026.
Rental prices followed a similar trend. Rents declined 2.5 per cent quarter-on-quarter and increased 7.8 per cent year-on-year.
Gross rental yields averaged:
- Nearly 7 per cent for apartments
- 5 per cent for villas and townhouses
- Dubai Investments Park recorded the highest yield at 9.7 per cent
- International City achieved 8.9 per cent
- International City Phase 2 recorded 8.4 per cent
- Dubai Industrial City led with 6.4 per cent
- DAMAC Hills 2 and Jumeirah Golf Estates both recorded 5.8 per cent
- Ultra-luxury market remains resilient
The off-plan ultra-luxury segment grew 26 per cent, while ready ultra-luxury transactions declined 7 per cent.
Properties priced between AED20m ($5.4m) and AED50m ($13.6m) recorded 1,093 sales.
This segment rose 6.2 per cent compared with H2 2025 but fell 25 per cent year-on-year.
Mortgage activity rises
Mortgage transactions reached 22,500 during H1 2026, up 7.2 per cent year-on-year.
Apartments accounted for 70 per cent of all mortgage activity, while villa mortgages recorded the strongest annual growth, increasing by more than 18 per cent to 2,600 transactions.
Cavendish Maxwell said 47,000 new residential units are scheduled for delivery during H2 2026.
However, based on historical completion trends, actual deliveries are expected to range between 14,000 and 23,500 homes.
Apartments are forecast to account for more than 82 per cent of deliveries, with Jumeirah Village Circle, Dubai South, Dubai Science Park, Business Bay, Downtown Dubai and Dubai Healthcare City together representing nearly 37 per cent of scheduled completions.
The longer-term development pipeline includes 162,500 homes in 2027 and 128,200 in 2028.
Credits & Disclaimer: This article are credited to the Associated Press, it's authors and editors. Likewise, the images are for illustration purposes only and credited all to their respective owners. The accuracy of the article is subject from the information grabbed from the sources at the time of posting this article.
