Dubai Property Market H1 2026: Q2 Sales Slow, Followed by a June Recovery

Dubai Land Department transaction data records 83,622 freehold sales worth AED 275.29 billion between January and June 2026. These figures exclude gifts and standalone mortgage registrations. Purchases financed through mortgages remain eligible for inclusion in the sales figures.

Sales slowed in Q2 before recovering in June

The first quarter recorded 46,965 sales worth AED 170.98 billion. In the second quarter, activity declined to 36,657 sales worth AED 104.31 billion. Compared with Q1, transaction numbers fell 21.9% and recorded sales value declined 39.0%.

June showed an improvement following May’s lower activity. May recorded 9,705 sales worth AED 26.09 billion, while June recorded 13,445 sales worth AED 31.51 billion. This represented a month-on-month increase of 38.5% in transaction numbers and 20.8% in value.

The June recovery was a positive development within a weaker second quarter. However, one month of improvement does not establish a sustained recovery, and transaction records alone do not explain changes in buyer confidence or the reasons behind purchasing decisions.

Off-plan led transaction numbers; sales value was almost evenly divided

Off-plan property recorded 57,846 sales worth AED 138.70 billion during H1. It accounted for 69.2% of transaction numbers and 50.4% of total sales value.

Ready property recorded 25,776 sales worth AED 136.59 billion, representing 30.8% of transactions and 49.6% of value. DLD’s ready classification includes land, so these figures should not be interpreted exclusively as sales of completed homes.

Off-plan property therefore led both transaction numbers and total value, although the difference in value was small. Ready-property sales accounted for almost half of recorded consideration despite representing fewer than one-third of transactions.

Property usage requires careful interpretation

Under DLD’s recorded usage classification, residential property accounted for 81,442 sales worth AED 239.98 billion. This represented 97.4% of transaction numbers and 87.2% of value. Commercial-classified property recorded 2,180 sales worth AED 35.31 billion, accounting for 2.6% of transactions and 12.8% of value.

These figures follow the source’s usage labels. Some offices and shops are recorded under Residential usage in the dataset, so this classification is not a strict division between homes and business premises. A separate breakdown by property subtype is needed when comparing those markets.

What the figures mean for buyers and sellers

The first half of 2026 combined substantial recorded sales activity with a clear slowdown in Q2 and an improvement in June. Performance across periods and property segments varied, making recent transactions for the relevant location, project and property type more useful than relying on the citywide total alone.

For buyers, comparable sales can help assess how an asking price relates to recent transactions. For sellers, they provide a starting point for pricing discussions. Changes in total sales value or transaction numbers should not be treated as direct evidence that an individual property has gained or lost the same percentage in value.

Modern Idea Real Estate can help you review relevant transactions and understand how the available evidence relates to your property and objectives.