Dubai’s residential property market is entering a period of stabilisation, with transaction volumes, pricing and new project launches moderating as the market moves towards a more sustainable balance, according to Savills Middle East’s latest Dubai Residential Market in Minutes Q3 2026 report.
The report recorded approximately 34,500 residential transactions during the third quarter, down 4% quarter-on-quarter (QoQ) and 38% year-on-year (YoY). Total transaction value reached AED 70.8 billion, representing a 14% quarterly decline. However, Savills notes that the moderation was largely concentrated in the off-plan segment, reflecting fewer new project launches rather than a broad-based weakening in demand.
Only around 5,000 residential units were launched during Q3, compared with approximately 36,400 in the previous quarter. Meanwhile, the ready-property market demonstrated stronger momentum, with transaction values increasing from AED 21.3 billion in Q2 to AED 25.1 billion in Q3, highlighting continued demand for completed homes.
Average apartment prices stood at AED 1,817 per sq ft, down 4.8% QoQ, while villa and townhouse prices averaged AED 1,523 per sq ft, a decline of 3.3%. However, like-for-like analysis revealed more resilient underlying performance, with apartment prices declining by just 1.7% and villa and townhouse prices remaining unchanged. This suggests that headline price movements are partly driven by changes in the type and value of properties being transacted.
Andrew Cummings, Head of Residential Agency, Savills Middle East, commented, “Dubai’s residential market is becoming more selective following several years of strong growth. Buyers are placing greater emphasis on pricing, location, quality and long-term value, while developers are taking a more measured approach to new launches.
“What’s encouraging is the continued demand for completed properties and the resilience of the prime segment. As the market becomes more balanced, well-located, quality homes that are priced appropriately should continue to attract interest from both end-users and investors.”
Prime residential values remain resilient
Despite a moderation in transaction volumes, Dubai’s prime residential market continued to demonstrate pricing resilience. Transactions above AED 10 million totalled 669 during Q3, compared with 871 in the previous quarter. However, prime apartment prices remained 4.0% higher YoY at AED 5,237 per sq ft, while prime villa and townhouse prices increased 3.6% YoY to AED 2,791 per sq ft.
Notable transactions included a villa on Palm Jumeirah sold for AED 260 million, a villa in Dubai Hills Estate for AED 252 million and an apartment at Aman Residences for AED 166 million.
Rental activity rebounds as supply remains measured
Dubai’s rental market recorded approximately 181,900 transactions in Q3, up 16% QoQ, with new leases accounting for 44% of activity, compared with 36% in the previous quarter. Rental rates across selected communities showed early signs of stabilisation, although performance continued to vary by location.
On the supply side, approximately 50,000 residential units were launched during the first nine months of 2026, around 64% fewer than the same period last year. Developers are increasingly focusing on phased launches, product positioning and flexible payment plans.
Looking ahead, Savills expects reduced launch activity and delayed completions to moderate immediate supply pressures. However, with more than 525,000 units currently scheduled for delivery between 2027 and 2030, population growth, household formation and project-specific fundamentals will remain important factors in supporting longer-term demand.
