Dubai Property Market Sees Shift to Selective Off-Plan and Branded Luxury in August

Dubai Land Department (DLD) data for August reveals a notable shift in the emirate's real estate landscape. While overall transaction volumes were down 37% and sales values fell 44% year-on-year, a closer look at the data points to a more discerning market rather than a broad downturn. Buyers are increasingly prioritising new, branded, and landmark properties, moving away from speculative resales.

Key Market Shifts

• Off-Plan Villa Demand Strengthens: Off-plan villa and townhouse transactions saw a 15% increase in volume and a 9% increase in value month-on-month from July to August. This trend is more pronounced annually, with off-plan villa volume up 80% and value up 204% since August last year. Conversely, secondary villa and townhouse activity decreased by 14% in volume and 10% in value over the same month, and are down approximately 60% year-on-year.
• Prime Off-Plan Outperforms Resale Luxury: In the high-end segment, ultra-luxury off-plan sales climbed 12% year-on-year in August. This contrasts sharply with a 67% decline in prime resale deals, indicating a preference among high-net-worth buyers for specific, newly launched addresses or developer products over existing inventory.
• Business Bay Emerges as Prime Hotspot: Business Bay recorded 14 prime transactions in August, surpassing Palm Jumeirah (10) and Downtown Dubai (8) to become the busiest prime address. This surge is largely attributed to demand for branded residences such as Bugatti Residences, Burj Binghatti Jacob & Co. by Binghatti, and Vela Viento by Omniyat, suggesting an expansion of luxury market appeal into previously non-prime areas.

Buyer Selectivity and Market Resilience

Despite fewer overall deals, the average value per transaction across combined apartment and villa sales rose 7% month-on-month, with average apartment prices up 4%. This suggests that buyers are not negotiating discounts but are willing to pay a premium for specific, high-quality products. August's largest sales underscore this confidence, including an AED 725 million whole-building sale in Downtown Dubai (over 250,000 sq ft at AED 2,845 per sq ft) and a Palm Jumeirah villa sold at AED 15,717 per sq ft. These significant transactions reflect long-term capital commitment to Dubai's real estate.

Richard Waind, CEO of betterhomes, noted, "> Dubai is increasingly behaving as a collection of distinct micro-markets rather than one market moving in a single direction. The headline numbers are softer, but there are still clear pockets of strength. What we are seeing is a more considered market, where buyers are scrutinising value more closely and stronger properties are continuing to transact."

The market is expected to continue adjusting through the remainder of 2026, with strength concentrated in branded residences, prime off-plan launches, and established master communities.