Sale transaction volumes rose from 8,877 in June to 9,217 in July 2026, up 3.8 percent, driven almost entirely by the secondary market where volumes grew approximately 18 percent from 4,100 to 4,800 deals. The shift points to stronger appetite for ready stock as value-seeking investors re-entered through the mid-market segment.
Commercial activity rose alongside residential sales, with volumes up 24.8 percent to 397 deals and total value reaching AED5.8 billion.
Buyer and Seller Expectations Converge
Buyer sentiment across Dubai’s residential market continued to normalize during July. The share of home seekers planning to buy within six months edged up from 66 percent to 68 percent, while the proportion expecting further price declines fell from 56 percent to 52 percent, extending its correction from the 73 percent peak recorded immediately after regional conflict.
Those expecting prices to stay flat or rise increased from 44 percent to 48 percent.
Property Finder’s sale-listing price index settled at 2.5 percent below the pre-conflict baseline for a second consecutive month. The gap between advertised and final transacted prices, which had widened to between 6 percent and 12 percent by May, narrowed to between 5.5 percent and 11 percent in July.
“July confirms a market that has moved back into growth, with transaction volumes and values rising together and buyers returning with real intent. The more telling signal sits beneath that growth: sellers have paused further price cuts and the gap between asking and achieved prices is narrowing, which brings the two sides of a deal closer together and turns a single strong month into a lasting trend,” said Cherif Sleiman, Chief Revenue Officer at Property Finder.
Apartments Regain Lead as Investor Confidence Returns
A clearer divide opened between property segments in July 2026. Apartments regained share from villas and townhouses, rising from 59.5 percent to 62 percent of sale leads, with studios and one-bedroom units driving the gain—a sign of stronger investor appetite for higher-yield, more liquid stock.
Mortgage Finder data indicated a similar return of investor confidence, with the investor share of mortgage transactions rising from 9 percent in June to 12.8 percent in July, concentrated in the middle-income bands.
Applicants earning between AED20,000 and AED59,999 monthly made up 62.4 percent of all mortgage applications, while higher earners above AED60,000 continued to face a tighter villa and townhouse pipeline.
Dubai Land Department data shows how differently the two segments finance purchases. Of 2,887 mortgages registered in July, worth AED4.93 billion, apartments accounted for 81.9 percent of volume, yet only 20.3 percent of all apartment sales involved a mortgage, against 67.8 percent of villa sales. Apartments are transacting largely in cash, consistent with an investor and off-plan buyer base, while villas skew toward financed, owner-occupier purchases.
Activity extended into rentals, where new leasing transactions ran 2 percent above the pre-conflict baseline and renewals returned to pre-conflict levels, supported by tenants using softer rents to move into larger homes and stronger communities.
The July 2026 figures reflect sustained momentum in a market where 186 new developers entered between January and mid-August, while 24,800 residential units were completed during the first half of the year.
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