Tag: residential market

  • Dubai Off-Plan Market Attracts Buyers Across All Price Segments in H1 2026

    Dubai Off-Plan Market Attracts Buyers Across All Price Segments in H1 2026

    Bayut’s first-half 2026 Dubai Sales Market Report has revealed that off-plan residential demand is no longer concentrated within a single pricing category. Instead, buyers with markedly different budgets are actively considering projects across affordable, mid-tier, luxury and ultra-luxury segments.

    The findings point to an increasingly diverse buyer population evaluating different locations and property types. While price and payment flexibility remain important, purchasers are also weighing connectivity, community appeal and prospects for long-term value when making final decisions.

    Price Range Spans Entry to Premium

    Average prices among popular off-plan apartment projects highlighted by Bayut ranged from just over Dh600,000 at Dubai Investment Park 1 in the affordable category to almost Dh12 million at The Crescent on Palm Jumeirah in the ultra-luxury segment.

    The price range was wider for villas. Verdana 2 in Dubai Investment Park had an average value of Dh1.31 million, while The Palm Crown on Palm Jumeirah averaged Dh31.92 million. The comparison illustrates the scale of opportunities available to purchasers with different budgets and investment goals.

    The Palm Beach Towers, The Crescent and Bluewaters Bay were among the leading off-plan apartment projects attracting interest in the ultra-luxury category. City Walk, Sobha One and Riverside Crescent stood out in the luxury apartment segment, while JVC District 11, JVT District 4 and Dubai Healthcare City Phase 2 appeared among preferred choices for mid-tier buyers.

    For purchasers seeking more accessible entry prices, International City Phase 2, the Residential District in Dubai South and Dubai Investment Park 1 were among popular affordable off-plan apartment options.

    Buyer Priorities Evolve Beyond Payment Plans

    Akash Kanjwani, founder and group chief executive officer of Sky View Real Estate and Sky View Developments, said off-plan property continues to attract buyers by providing flexibility, choice and access to emerging communities.

    “Today’s buyers are considerably better informed and ask detailed questions about developers, locations, nearby infrastructure and how communities will function after completion. A payment plan may generate initial interest, but the project’s underlying fundamentals are playing a greater role in the final purchasing decision,” Kanjwani said.

    That shift means buyers are increasingly evaluating the entire proposition rather than using price as their only measure. Community quality, accessibility, amenities, the developer’s record and expected future demand are becoming more influential throughout the decision-making process.

    Fibha Ahmed, vice president of property sales at Bayut, said the first-half data showed that Dubai’s off-plan market was attracting a remarkably varied group of buyers whose motivations were becoming increasingly specific.

    “Purchasers are no longer making only a general choice between off-plan and ready homes. They are comparing individual projects using price, location, lifestyle, connectivity, potential rental performance and future value,” Ahmed said.

    She added that the breadth of prices and communities generating interest demonstrated the depth of Dubai’s off-plan sector and reflected a buyer base applying greater information and deliberation when assessing opportunities.

    Market Context and Transaction Activity

    Bayut’s buyer-interest findings sit within a property market that entered 2026 with substantial transaction activity. Dubai Land Department’s first-quarter data showed total real estate transactions reaching Dh252 billion, 31 percent more than a year earlier, while the number of transactions increased 6 percent to 60,303.

    Real estate investments reached Dh173 billion through 57,744 deals during the quarter, increasing 22 percent in value and 7 percent in number. Dubai’s investor base expanded 8 percent to 48,448 people, including 29,312 new investors, 14 percent more than a year earlier.

    Foreign investment rose 26 percent to Dh148.35 billion, while GCC nationals completed 3,228 investments worth Dh12.23 billion. The breadth of capital entering the market supports the portrayal of demand extending beyond one buyer profile or pricing category.

    Bayut’s separate price index placed Dubai’s advertised off-plan price at Dh1,894 per square foot in June 2026, up 5.38 percent over 12 months. The displayed averages varied sharply by unit size, from Dh1,773 per square foot for studios and Dh1,779 for one-bedroom apartments to Dh3,862 for four-bedroom apartments and Dh5,650 for apartments with at least five bedrooms.

    Villa figures ranged from Dh977 per square foot for two-bedroom homes to Dh2,394 for six-bedroom properties, further illustrating how product type and scale shape entry costs.

    Off-Plan Growth Extends 2025 Trends

    The latest findings extend trends visible throughout 2025. Bayut’s annual report said Dubai recorded 134,623 off-plan sales worth Dh293 billion that year, with off-plan properties representing 62.6 percent of total sales transactions.

    Developers launched 446 off-plan projects in 2025, compared with 428 in 2024. Emaar Properties led with 49 launches and 16,829 transactions. Jumeirah Village Circle recorded 12,285 off-plan apartment transactions, while Business Bay had the highest average apartment transaction price among highlighted areas at Dh2.38 million.

    Dubai recorded more than 270,000 property transactions worth Dh917 billion in 2025, a 20 percent annual increase. Investments exceeded Dh680 billion across 258,600 deals, while the investor population expanded 24 percent to approximately 193,100.

    This expansion supports the emirate’s 2033 strategy, which aims to increase real estate transactions by 70 percent, lift market value to Dh1 trillion, raise homeownership to 33 percent and double the sector’s economic contribution to roughly Dh73 billion.

    As Dubai continues expanding its residential inventory, Bayut expects off-plan property to remain an important part of the market, with buyers likely to continue balancing affordability and payment flexibility against project fundamentals and long-term potential. UAE’s top 10 developers sold Dh113.7 billion in the first half of 2026, reflecting sustained momentum across the sector.

  • 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.”