Dubai's Housing Market Expands with 24,800 New Units

Jul 30, 2026

77 min

Jul 30, 2026 11:32

Dubai homebuyers get more choice as 24,800 new units enter the market

## Market Growth

Dubai's real estate sector saw a significant boost in the first half of 2026 with the addition of 24,800 new homes. This increase in supply offers more options for buyers and renters, marking a shift towards steadier market growth after two years of heightened activity.

## Price and Rent Trends

Residential sales prices decreased by 2.6% from the previous quarter, while rental rates fell by 2.5%. Despite these declines, prices remain 2% higher than the previous year, and rents have increased by 7.8% annually.

## New Developments

The first half of 2026 was notable for the completion of numerous projects initiated during the recent market expansion. However, new project launches have slowed, with 28,000 units introduced across 124 projects, compared to 102,000 units across 410 projects the previous year.

## Transaction Insights

Dubai recorded 79,300 residential transactions worth Dh221.4 billion in the first half. Although transaction volumes dropped by 14% from the previous year, off-plan homes still dominated the market, accounting for nearly 75% of transactions.

## Future Outlook

An additional 47,000 units are expected to be completed in the second half of 2026, though actual handovers may range between 14,000 and 23,500 homes. Apartments are projected to make up over 82% of these completions, with key areas including Jumeirah Village Circle and Dubai South.

## Investment Trends

Mortgage transactions rose by 7.2% to 22,500, and sales of homes priced above Dh50 million increased by 13% to 160 transactions. Gross rental yields averaged nearly 7% for apartments and 5% for villas and townhouses.

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