Dubai Branded Residences Market Sees Growth in Supply, Moderation in Transactions in H1 2026

Dubai's branded residences market experienced significant inventory expansion in the first half of 2026, yet transaction activity moderated from the previous year's highs. According to the "Dubai Branded Residences Report H1 2026" by Morgan’s International Realty, the emirate added 5,184 new branded residential units, bringing the total inventory to 64,744 units across 183 developments as of June 30, 2026.

This growth represents an 8.7 per cent increase in total units within six months. Despite the supply surge, transaction volumes for branded residences decreased by 21 per cent, with 4,648 deals recorded, and total sales value fell by 47 per cent to Dh22.21 billion compared to H1 2025. This sharper drop in value is attributed to a shift towards smaller units, lower price points, and a greater share of non-prime inventory.

Market Dynamics and Pricing Power

Off-plan properties continue to dominate the market, accounting for 82 per cent of transaction volume and 78 per cent of sales value. Notably, the Mercedes-Benz Places — Binghatti City development alone recorded 1,216 transactions, representing approximately 26 per cent of all branded residence sales during the period.

Branded residences maintained a significant premium, commanding an average price of $997 (Dh3,662) per square foot in H1 2026, which is 56 per cent higher than comparable non-branded properties priced at $641 (Dh2,354) per square foot. This premium significantly exceeds the global average of 30 to 35 per cent. However, Morgan's International Realty founder, Elias Hannoush, cautioned that while premiums are evident, their long-term endurance beyond construction-linked payment plans will be a key test for execution and delivery quality.

Key Locations and Future Outlook

Downtown Dubai leads with 23 branded developments, followed by Business Bay (21) and Palm Jumeirah (18). Meydan recorded the highest transaction volume with 1,378 deals worth Dh3.03 billion. The report also highlighted ongoing demand for ultra-luxury segments, with five transactions of Dh200 million or more, including a Dh422 million sale at Aman Residences Dubai.

Since 2020, the number of branded residential developments has more than tripled. Approximately 66 per cent (42,826 units) of the current inventory remains under construction. As supply continues to expand, buyers are advised to assess individual projects based on merit, quality, and service rather than solely relying on brand affiliation or broader market trends.