Dubai Adds 24,800 New Homes in H1 2026, Says Cavendish Maxwell

DUBAI, UAE – Dubai added 24,800 new residential units to its housing inventory during the first half of 2026, marking a 38% increase compared to the same period last year and a 12% rise over H2 2025, according to the latest residential market report by Cavendish Maxwell.

The advisory firm said the strong increase in project completions, the highest half-year delivery period in several years, signals that Dubai's residential market is transitioning from a launch-led cycle to a delivery-driven phase as developments launched over recent years begin reaching completion.

While completed homes increased significantly, the pace of new project launches moderated.

Developers launched 28,000 units across 124 projects during H1 2026, compared with 102,000 units across 410 launches in the same period last year.

According to Cavendish Maxwell, the slowdown began before regional geopolitical tensions emerged, with fewer launches recorded during the first quarter as developers adopted a more measured strategy following record activity in 2024 and 2025. The slowdown became more pronounced during the second quarter as heightened regional uncertainty prompted some developers to postpone new projects.

Sales Activity Moderates Following Record Growth

Dubai recorded 79,300 residential sales transactions during the first six months of 2026, representing a decline of nearly 14% year-on-year and 27% compared with the record-breaking second half of 2025.

The slowdown affected both off-plan and ready property markets, with off-plan transactions declining by nearly 9% and ready property sales falling by nearly 26%. Despite the moderation, off-plan properties continued to dominate the market, accounting for almost 75% of all residential transactions.

Total residential sales reached $60.28 billion (AED221.4 billion) during H1 2026, down nearly 16% compared with the same period last year and 20% lower than H2 2025.

Off-plan sales totalled almost $45.22 billion (AED166 billion), representing a 13.7% annual decline, while ready property sales reached $15.12 billion (AED55.5 billion), down 21% year-on-year.

Market Entering a New Cycle

Ronan Arthur, Director, Head of Residential Valuations at Cavendish Maxwell, said:

"Dubai’s residential market is showing clear signs of transitioning to a new cycle following exceptional levels of activity over the last two years. The fundamentals that drive real estate demand in the emirate remain intact, but the near-term outlook is being shaped by a combination of factors – including the impact of fewer launches, regional uncertainty and a broader normalisation in buyer activity – that are likely to influence transaction levels and price performance."

Apartments Continue to Lead Sales

Developer sales remained dominant, accounting for more than 92% of all off-plan transactions as buyers continued to benefit from attractive pricing and payment plans.

Initial off-plan sales totalled 54,700 transactions, representing only a 1.5% decline year-on-year, while off-plan resales fell 51% to 4,600 transactions.

Apartments continued to account for the majority of residential purchases, representing nearly 85% of off-plan sales and 80% of ready market transactions.

Within the off-plan apartment market, Dubai South recorded the highest number of sales with 7,306 transactions, followed by Dubai Residence Complex, Jumeirah Village Circle, Dubai Islands and Majan.

For ready apartments, Jumeirah Village Circle retained the leading position with 1,812 sales, followed by Business Bay, Dubai Marina, Downtown Dubai and Dubai Creek Harbour.

Among villas and townhouses, DAMAC Islands 2 led the off-plan segment with 3,192 transactions, while DAMAC Hills 2 remained the strongest performer in the ready market with 410 sales.

Prices Ease While Rental Returns Stay Strong

Residential sales prices averaged AED1,639 per square foot in June 2026, declining 2.6% during the second quarter compared with Q1, while recording annual growth of just under 2%.

Rental rates followed a similar trend, falling 2.5% quarter-on-quarter while increasing 7.8% compared with the previous year.

Despite softer price growth, Dubai continued to deliver some of the world's strongest rental returns.

Gross rental yields averaged nearly 7% for apartments and 5% for villas and townhouses during H1 2026.

Among apartment communities, Dubai Investments Park recorded the highest yields at 9.7%, followed by International City (8.9%) and International City Phase 2 (8.4%).

For villas and townhouses, Dubai Industrial City generated the highest rental yield at 6.4%, ahead of DAMAC Hills 2 and Jumeirah Golf Estates, both at 5.8%.

Ultra-Luxury Market Remains Resilient

Demand for ultra-prime homes continued to strengthen.

Sales of residential properties priced above $13.62 million (AED50 million) increased 13% year-on-year, with 160 transactions completed during H1 2026. Of these, 108 sales were recorded in the off-plan market, representing annual growth of 26%.

Meanwhile, sales within the luxury segment priced between $5.45 million and $13.62 million (AED20 million to AED50 million) declined 25% compared with H1 2025, although they increased 6.2% compared with H2 2025.

A total of 1,093 luxury homes changed hands during the first half, including 826 off-plan purchases.

Mortgage Activity Continues to Grow

Mortgage transactions reached 22,500 during H1 2026, representing a 7.2% increase compared with the same period last year.

Apartments accounted for 70% of all mortgage activity, while villa mortgages recorded the strongest annual growth, increasing more than 18% to 2,600 transactions.

Delivery Pipeline Remains Robust

Cavendish Maxwell expects approximately 47,000 residential units to be scheduled for delivery during the second half of 2026. However, based on historical completion trends, actual deliveries are forecast to range between 14,000 and 23,500 units.

Apartments are expected to account for more than 82% of completions, with Jumeirah Village Circle, Dubai South, Dubai Science Park, Business Bay, Downtown Dubai and Dubai Healthcare City together representing nearly 37% of scheduled deliveries.

Dubai's residential pipeline includes 162,500 units expected in 2027 and a further 128,200 units planned for 2028.