Dubai Residential Market Strengthens in July, Transaction Values Hit AED 34.9 Billion

Dubai's residential real estate market demonstrated notable strength in July 2026, driven by a surge in sale transactions, a halt in seller price reductions, and increased buyer engagement in the ready market. Data from Property Finder and Mortgage Finder indicates that overall sale transaction volumes rose to 9,217 in July, a 3.8% increase from June, with transaction values climbing 5.2% to AED 34.9 billion.

Secondary Market Leads Growth

The primary driver of this growth was the secondary market, where transaction volumes jumped approximately 18%, from 4,100 to 4,800 deals. This points to a stronger appetite for ready properties among buyers. Commercial activity also saw an uplift, with volumes rising 24.8% to 397 deals and a total value of AED 5.8 billion.

Buyer sentiment continued to normalise, with the proportion of home seekers planning to purchase within six months increasing from 66% to 68%. The percentage of buyers expecting further price declines decreased from 56% to 52%, while those anticipating stable or rising prices grew from 44% to 48%.

Shifting Dynamics in Property Segments

A clear distinction emerged between apartment and villa segments. Apartments increased their share of sale leads from 59.5% to 62.0%, primarily driven by demand for studios and one-bedroom units, indicating renewed investor interest in higher-yield, more liquid assets. Mortgage Finder data also highlighted this trend, with the investor share of mortgage transactions rising from 9% in June to 12.8% in July, concentrated within middle-income brackets.

Financing patterns also varied significantly. According to Dubai Land Department (DLD) data, out of 2,887 mortgages registered in July worth AED 4.93 billion, apartments constituted 81.9% of the volume. However, only 20.3% of apartment sales involved a mortgage, compared to 67.8% of villa sales. This suggests that apartment transactions are largely cash-based, catering to investors and off-plan buyers, while villas are more frequently financed, appealing to owner-occupiers.

Rental market activity also saw positive trends, with new leasing transactions exceeding pre-conflict levels by 2% and renewals returning to previous benchmarks, as tenants leveraged softer rents to secure larger homes in desirable communities.