Estattor.com

Tag: property prices Dubai

  • Dubai Rents Fall 6.2% in Q2 as Offices Hold Strong

    Dubai Rents Fall 6.2% in Q2 as Offices Hold Strong

    Tenants in Dubai experienced measurable relief during the second quarter of 2026, with average residential rents falling 6.2 percent from the previous three months and 2.6 percent year-on-year, according to CBRE Middle East’s UAE Real Estate Market Review released on July 29, 2026.

    Home sales prices remained 1.9 percent higher year-on-year, indicating market stabilization rather than correction following several years of sustained growth.

    Around 18,000 residential units were completed across Dubai during the first half of the year, adding inventory and creating more options for tenants and buyers.

    Home Sales Slow from Last Year

    Fewer than 37,000 residential transactions were recorded in Dubai during the second quarter, a 29 percent decline from more than 51,000 sales in the same period of 2025.

    The total value of transactions reached Dh88 billion, compared with nearly Dh154 billion a year earlier.

    CBRE linked the slowdown to softer demand, fewer new project launches and increased housing supply during the first six months of the year.

    Office Rents Continue to Rise

    Dubai’s office market continued to record strong demand, particularly for high-quality space in major commercial districts and free zones.

    Average office rents increased 13 percent in the year to the end of the second quarter, while prime office rents rose 16 percent, consistent with broader trends across the UAE where office rents surged 13 percent year-on-year.

    Occupancy remained at approximately 94 percent, reflecting the limited availability of Grade A offices across the city.

    Demand remained concentrated in DIFC, TECOM and DMCC, where companies continued to lease space in future developments before construction was completed.

    Abu Dhabi recorded similar conditions, with average office rents rising nearly 16 percent and occupancy reaching approximately 96 percent.

    Demand was strongest in Abu Dhabi Global Market, supported by growth among financial services companies, hedge funds and investment firms.

    While several sectors have seen a moderation in performance, the impact has been uneven, with office and industrial markets continuing to benefit from limited supply and sustained occupier demand.

    Matthew Green, Head of Research at CBRE MENA

    Abu Dhabi Homes Record Strong Growth

    Abu Dhabi’s residential market continued to attract buyers during the second quarter, with property values rising 21.6 percent from a year earlier.

    Apartment prices increased 24.4 percent, while average rents remained 3.6 percent higher year-on-year despite some moderation during the quarter.

    Residential sales reached Dh32 billion, marking a 150 percent increase from the same period of 2025, while the number of transactions rose by around 80 percent, reflecting sustained momentum in the emirate’s real estate market.

    Off-plan homes accounted for approximately 83 percent of transactions and 85 percent of total sales value.

    Retail and Industrial Sectors Maintain Momentum

    Retail properties continued to record high occupancy despite softer tourist spending, with occupancy remaining at approximately 98 percent in Dubai and 95 percent in Abu Dhabi.

    Dubai retail rents increased by around 3 percent, while rates in Abu Dhabi remained largely stable.

    Industrial and logistics property remained one of the strongest segments of the UAE real estate market, supported by manufacturing investment, supply chain localization and foreign direct investment.

    Industrial exports reached Dh262 billion in 2025, while government programmes including Operation 300bn continued to support manufacturing and logistics activity.

    CBRE expects the UAE economy to record a marginal contraction of 0.04 percent in 2026 following disruption to trade, tourism, aviation and other consumer-facing sectors.

    “What remains particularly noteworthy is the speed and scale of the UAE’s policy response, from supporting business continuity and trade flows to advancing economic partnerships and diversification initiatives,” Green said.

    “Although near-term conditions are likely to remain challenging, the country’s long-term growth trajectory remains supported by structural reforms, strategic investment and its position as a leading hub for trade, capital and talent.”

  • UAE Property Markets Moderate as Growth Cycle Matures Across Emirates

    UAE Property Markets Moderate as Growth Cycle Matures Across Emirates

    After several years of exceptional growth, the UAE residential property market is showing signs of entering a more mature phase of the cycle. While demand remains broadly resilient and annual price growth continues across most markets, recent data suggests that the rapid pace of capital appreciation witnessed since the pandemic is beginning to moderate.

    The first quarter of 2026 has highlighted an increasingly divergent landscape across the country’s major residential markets. Dubai appears to be transitioning from expansion to stabilization; Abu Dhabi continues to benefit from a delayed recovery cycle; and Ras Al Khaimah is experiencing a gradual easing of growth after two years of strong gains.

    Dubai: From Rapid Expansion to Market Stabilization

    Dubai’s residential market entered 2026 with considerable momentum. January and much of February continued the growth trajectory established over recent years, supported by strong population growth, investor confidence, and a persistent imbalance between housing demand and available supply.

    However, conditions shifted noticeably during March. A combination of geopolitical tensions in the region, the holy month of Ramadan, Eid holidays, increased remote working and homeschooling, and periods of adverse weather contributed to softer market activity.

    According to the ValuStrat Price Index (VPI), Dubai’s freehold residential market recorded annual growth of 8.9 percent during the first quarter of 2026. Despite this positive yearly performance, the index declined by 3.8 percent during the quarter, falling to 229.2 points and marking the first quarterly contraction since 2020.

    The moderation became more evident during the second quarter. In April, the VPI fell to 224.9 points, representing a monthly decline of 1.9 percent, significantly less severe than March’s 5.9 percent contraction. Annual growth remained positive at 5.3 percent, indicating that the market correction was occurring from a position of strength rather than weakness.

    By May, further signs of stabilization emerged. The VPI declined by a more modest 1.2 percent to reach 222.1 points, while annual growth slowed to 2.5 percent. Villa values eased to 297.3 points and apartment values to 170 points, both benchmarked against a base of 100 in January 2021.

    Importantly, rental market performance tells a different story. Residential rents have largely stabilized over the past six months, with apartments and villas recording only modest annual growth. Rather than signaling weaker demand, this trend appears to reflect growing affordability constraints as housing costs have risen substantially over recent years.

    Supply remains a critical factor supporting the market. Despite ambitious development pipelines, supply chain disruptions and rising construction costs continue to constrain delivery timelines. Approximately 7,400 homes were completed during the first quarter of 2026, representing only 6 percent of the preliminary annual completion target.

    Abu Dhabi: Growth Cycle Still Has Room to Run

    In contrast to Dubai, Abu Dhabi’s residential market continued to accelerate during the first quarter of 2026.

    The capital city’s property recovery started later than Dubai’s, placing it at a different point in the cycle. More accessible price points, combined with improving economic fundamentals and growing end-user demand, have continued to support capital value growth.

    The ValuStrat Price Index for Abu Dhabi’s freehold residential market rose to 148 points during Q1 2026, recording quarterly growth of 6.4 percent and annual growth of 17.8 percent. This represented a clear acceleration compared with previous quarters.

    Demand has been particularly strong for strategically located communities offering ready apartments at relatively affordable price points. Consequently, apartment values outperformed villas by a considerable margin.

    Apartment values surged by 10.4 percent during the quarter and 22.7 percent annually, pushing the apartment VPI to 143.4 points. Villa values increased by 2.7 percent quarterly and 13.4 percent annually to reach 152.7 points.

    Supply additions remain relatively limited compared to demand growth. During the first quarter, Abu Dhabi recorded the completion of 2,018 apartments and 392 villas, representing just 13.1 percent of the year’s anticipated residential pipeline.

    Ras Al Khaimah: Growth Slows but Remains Positive

    Ras Al Khaimah’s residential market remains one of the UAE’s most closely watched emerging property sectors, particularly following increased investor interest driven by tourism, infrastructure investment, and major development announcements.

    The ValuStrat Price Index for Ras Al Khaimah’s freehold residential market reached 124.1 points in Q1 2026, remaining stable every quarter while recording annual growth of 9.3 percent. Although healthy by most standards, this marked the slowest annual growth rate recorded over the past two years.

    Villa capital growth continued its gradual deceleration, slowing from 10.4 percent annually in Q4 2025 to 7.4 percent in Q1 2026. Apartment values also experienced softer growth, increasing by 10.3 percent annually while remaining stable during the quarter.

    These figures suggest that certain communities may be approaching pricing ceilings after a period of rapid appreciation. Nevertheless, the emirate continues to offer comparatively attractive entry points relative to Dubai and Abu Dhabi, preserving its appeal among investors and owner-occupiers seeking affordability.

    Outlook: Flattening Rather Than Falling

    Looking ahead, the most likely scenario for the UAE residential market appears to be one of stabilization rather than correction.

    Dubai’s market cycle was already approaching a potential peak before regional geopolitical tensions introduced a temporary shock to sentiment. Since then, the pace of value declines has eased significantly, suggesting that the market is absorbing the disruption. Given continued supply constraints and strong demographic fundamentals, widespread price declines appear unlikely.

    Abu Dhabi’s trajectory differs somewhat. Having entered its recovery phase later, the market retains greater potential for additional growth. Nevertheless, the exceptionally strong gains recorded over the past 18 months are unlikely to continue indefinitely, and signs of moderation are already becoming visible.

    Meanwhile, Ras Al Khaimah and the northern emirates are expected to continue benefiting from their affordability advantage. However, after several years of rapid appreciation, selected communities may increasingly transition towards stability as prices approach local affordability limits.

    The broader picture remains encouraging. While the era of extraordinary post-pandemic growth may be drawing to a close, the UAE residential market appears to be entering a more sustainable phase characterized by balanced growth, constrained supply, and resilient long-term demand fundamentals.

    “The UAE residential market appears to be entering a more sustainable phase characterized by balanced growth, constrained supply, and resilient long-term demand fundamentals.” — Haider Tuaima, Managing Director and Head of Real Estate Research at ValuStrat

  • Six Dubai Communities See Property Prices Double in Five Years

    Six Dubai Communities See Property Prices Double in Five Years

    New analysis from Bayut reveals that buyers who entered Dubai’s property market during the post-Covid recovery have witnessed extraordinary returns, with advertised sale prices climbing by as much as 153% in the emirate’s most sought-after communities over a five-year period.

    The UAE property portal compared average advertised prices per square foot in May 2021 with April 2026 using its proprietary Price Index, showing that prices across key Dubai communities have risen by between 41% and 153%.

    Jumeirah Islands topped the growth chart, with advertised prices surging from Dh1,523 per square foot in May 2021 to Dh3,844 in April 2026—a remarkable 153% increase. Jumeirah Golf Estates followed with 119% growth, while Jumeirah Lake Towers recorded a 115% rise over the same period.

    Villa Communities Drive Market Gains

    Established family-oriented communities demonstrated some of the strongest price appreciation, underlining how end-user demand has underpinned long-term value across Dubai’s residential landscape.

    The Meadows recorded a 110% increase, while The Springs rose by 109%. Jumeirah Park climbed 106%, with advertised prices moving from Dh1,076 to Dh2,214 per square foot. Arabian Ranches posted a 95% increase, reinforcing the appeal of mature villa communities among families and long-term buyers.

    Dubai South registered a 92% rise, pointing to continued demand in infrastructure-led locations, while Dubai Hills Estate climbed 87%. Jumeirah Village Circle rose 84%, with advertised prices increasing from Dh827 to Dh1,521 per square foot.

    “Looking back at May 2021, the market was still recovering from the impact of Covid-19, and many buyers were understandably cautious. However, those who entered the market at that time have seen significant gains across several of Dubai’s most established and emerging communities,” said Fibha Ahmed, VP of Sales at Bayut.

    Ahmed added that the current environment differs from 2021, but the underlying lesson remains relevant: “uncertainty can create opportunity for buyers who are guided by data, long-term fundamentals and a clear understanding of market value.”

    Premium Districts Attract Capital

    High-demand lifestyle and waterfront locations also recorded substantial gains during the review period.

    Palm Jumeirah saw advertised prices rise by 83%, from Dh2,452 to Dh4,471 per square foot. Business Bay increased by 78%, while Dubai Marina rose by 67% and Downtown Dubai climbed 64%.

    The findings emerge as Dubai’s market increasingly evolves into a long-term investment destination, with resident investors now accounting for over half of total property investments by value.

    Luxury Off-Plan Market Remains Robust

    The latest data also points to continued strength at the upper end of the market. Dubai developers recorded Dh4.96 billion in off-plan sales for homes priced above Dh5 million in May 2026, according to market analysis from Keturah based on DXBinteract data.

    Villa buyers accounted for Dh2.51 billion across 184 transactions, while apartment sales reached Dh2.45 billion from 207 deals. That translates to 391 luxury off-plan homes sold during the month—an average of 12 homes worth more than Dh5 million changing hands every day, with an average deal value of Dh12.7 million per property.

    The strongest villa activity came in the Dh10 million to Dh20 million bracket, where 60 transactions generated Dh834.2 million in developer off-plan sales. Another 23 villa deals worth Dh746.3 million were recorded in the Dh20 million to Dh50 million range.

    Apartment sales concentrated in the Dh5 million to Dh10 million bracket, which accounted for 158 of the 207 transactions recorded during the month.

    Bayut noted the findings come at a time when regional uncertainty has prompted some buyers to adopt a more cautious approach. However, previous periods of hesitation have also created opportunities for buyers who relied on pricing data and assessed fundamentals before momentum returned.

    “Dubai’s property market has repeatedly shown its ability to recover, recalibrate and move forward with strength,” Ahmed noted. “What matters in moments like these is not reacting emotionally, but using the right information to identify where genuine value exists.”

    The combined data shows a market that has delivered strong five-year gains across established communities while continuing to attract large-ticket off-plan investment, with Dubai’s long-term appeal remaining tied to prime supply, infrastructure growth, and sustained investor confidence.

  • Dubai Off-Plan Sales Drive $10.18 Billion Residential Market in April

    Dubai Off-Plan Sales Drive $10.18 Billion Residential Market in April

    Dubai’s residential sector maintained stable activity levels through April despite a more measured global investment environment, with transaction values increasing 0.46% compared to March 2026.

    Off-Plan Segment Accounts for AED28.55 Billion

    Off-plan activity remained the primary driver of market performance during the month, recording 9,990 transactions worth AED28.55 billion and representing 76.39% of total transaction value. The segment continues to benefit from demand for newly launched communities, phased payment structures, and infrastructure-led residential development.

    Dubai’s market performance through April once again reinforced the strength of the city’s long-term fundamentals. Despite broader geopolitical uncertainty, liquidity remained healthy, transaction activity held steady and investor participation across key residential corridors continued to reflect confidence in Dubai’s long-term growth trajectory.

    Farooq Syed, CEO of Springfield Properties, emphasized sustained confidence despite regional challenges.

    Secondary Market Records 3,072 Transactions

    Dubai’s secondary real estate market contributed AED8.83 billion across 3,072 transactions, with activity concentrated in established residential communities supported by end-user demand and long-term ownership confidence.

    Residential activity remained concentrated across several key master-planned communities. Dubai South recorded the highest transaction volume with 1,140 deals, followed by Jumeirah Village Circle with 797 transactions and Dubai Islands with 693 transactions. DAMAC Lagoons and Dubai Creek Harbour also maintained healthy activity levels.

    Pricing Holds Firm Across Segments

    Residential pricing remained broadly firm during April. Off-plan apartments averaged AED2,111 per square foot, while off-plan villas reached AED2,293 per square foot. Secondary villas maintained premium positioning at AED2,406 per square foot, reflecting sustained demand for completed family-oriented communities.

    Properties priced between AED1 million and AED3 million represented 53.62% of transactions with recorded sale values, while higher-value segments above AED5 million maintained stable activity levels.

    Commercial Sector Records AED10.35 Billion

    Beyond residential, Dubai’s commercial real estate market recorded AED10.35 billion across 963 transactions during April. Office transactions alone accounted for AED3.34 billion across 428 deals, reinforcing occupier and investor demand across established business districts and mixed-use commercial corridors.

    The report noted that recent updates to Dubai’s property-linked residency requirements are expected to support broader market participation over the medium term, particularly across affordable and mid-market residential segments.

    Dubai continues to strengthen its position as a global destination for capital, business and long-term residency. What differentiates the market today is not only resilience, but also the consistency of the city’s long-term vision, infrastructure investment, regulatory clarity and ability to sustain confidence through changing global conditions.

    Syed concluded that activity levels are expected to remain supported by population growth, strategic development, and sustained international demand across both residential and commercial sectors as market conditions continue to stabilize.

    The April figures align with broader market trends documented across the first quarter of 2026, when Dubai’s property sales exceeded Dh180 billion, reinforcing the emirate’s position as a global real estate destination.

  • Dubai Property Market Holds Steady as Buyers Prioritize Value

    Dubai Property Market Holds Steady as Buyers Prioritize Value

    Despite ongoing regional uncertainty and cautious buyer sentiment, Dubai’s real estate market continues to demonstrate resilience, with little evidence of the distressed deals many had anticipated. Recent data from leading property platforms indicates that while buyer behaviour has become more measured, underlying demand remains robust, with millions of property searches and sustained engagement from serious buyers actively progressing toward transactions.

    Industry experts say the shift reflects a more mature and balanced market rather than the onset of a downturn.

    We’re seeing a clear evolution in how buyers approach decisions. There’s more analysis, more comparison, and more negotiation — but not the kind driven by distress. Buyers want fair value, not fire sales.

    Luke Remington, Managing Director at haus & haus, explained the current market dynamics.

    Across Dubai’s most sought-after villa communities — including Dubai Hills Estate, Palm Jumeirah, and Arabian Ranches — demand continues to outpace supply. These areas, favored by end-users and long-term investors, are experiencing minimal pricing pressure, with sellers holding firm due to strong financial positions.

    On the apartment side, prime locations such as Dubai Marina, Downtown Dubai, and Business Bay remain highly active, particularly for one- and two-bedroom units. While some flexibility has emerged in mid-market segments with increasing inventory, price reductions remain moderate and selective.

    Negotiation has returned, but that’s a sign of a healthy market. Buyers are making offers below asking, but transactions are still closing within 5% to 15% of peak values. That’s typical of a functioning, stable environment — not a distressed one.

    Calum White, CEO and Founder of White & Co., emphasized the market’s stability.

    A key factor underpinning the market’s stability is seller behavior. Unlike previous downturns, there is limited urgency among property owners to liquidate assets. Most sellers are well-capitalized and willing to wait for the right offer, contributing to price support across key segments.

    Many expected uncertainty to trigger a wave of discounted inventory, but that hasn’t materialised. Instead, we’re seeing a more disciplined market where both buyers and sellers are adjusting expectations without panic.

    Fibha Ahmed, Vice President of Property Sales at Bayut, noted the absence of distressed inventory.

    This recalibration is also evident in transaction dynamics. Agents report longer decision cycles, increased property viewings, and more structured negotiations. Buyers are prioritizing quality, location, and developer credibility — particularly in the off-plan segment — over short-term pricing advantages.

    The conversation has shifted from timing the market to understanding value within it. That’s a much healthier foundation for long-term growth.

    Remington added regarding the evolving buyer mindset.

    The market’s resilience aligns with broader trends documented earlier this year. Dubai’s property market recorded over Dh180 billion in Q1 2026, with ultra-luxury deals surging 62.6% year-on-year. Meanwhile, commercial property prices jumped 28% between February and March 2026 despite regional tensions.

    While some buyers continue to wait for a potential dip, current indicators suggest that Dubai’s market is stabilizing rather than softening. Pricing remains supported by consistent demand, limited distress, and a steady inflow of both local and international investors.

    As the market enters this more balanced phase, industry leaders agree that opportunities still exist — but they are driven by informed decision-making rather than market-wide discounts. In this environment, Dubai’s property sector is not retreating — it is refining, offering a clearer alignment between price, value, and buyer expectations.