Home prices in Dubai has recorded its first annual decline since the height of the Covid-19 pandemic. The drop indicates a shift towards a more measured phase after several years of rapid growth.
According to Cavendish Maxwell, the average residential sales price dropped to Dhs 1,636 per sq ft in August, down 1.7% from the same month last year and 1.3% in the last three months. In addition, residential sales reached Dhs 23.4bn in August with the total value of transactions during the first eight months of 2026 reaching nearly Dhs 270bn. However, year-to-date transaction values were 24% lower than the same period in 2025.
Almost 10,900 homes transacted in August, around 14% fewer than in July. Cavendish Maxwell attributes this to the traditional slowdown in market activity during the summer months. However, off-plan properties accounted for around 75% of all residential sales.
Ronan Arthur, Director and Head of Residential Valuation at Cavendish Maxwell, adds the latest figures reflect a market transitioning into a more mature stage.
“After an extended period of exceptional strong sales activity with sustained price increases, the Dubai residential market continues its transition to a more measured phase.
“The August data confirms what our in-depth market insight – covering quarterly, six-month and annual statistics and trends – has been telling us for a while: prices are softening and the market is entering a more mature cycle.
“The fundamentals that drive Dubai real estate demand in the emirate remain intact, but the near-term outlook is being shaped by a combination of fewer launches, regional uncertainty and a broader normalisation in buyer activity, which will continue to influence transaction levels and price performance.”
Ronan Arthur, Director and Head of Residential Valuation, Cavendish Maxwell
The latest figures illustrate Dubai’s property market is moving away from the exceptional growth seen in recent years, indicated by softer pricing and slower transaction volumes pointing to maturation rather than continued rapid acceleration.
