Dubai Secondary Property Market Shows Early Recovery Signs in Summer 2026

Dubai's secondary residential property market exhibited an unexpected surge in activity during the summer of 2026, pointing to an early recovery phase after a period of contraction. Data from Espace Real Estate reveals that July and August 2026 saw a 24.6% increase in secondary transactions compared to May and June, a significant reversal from the 14.2% decline observed during the same period in 2025.

Shifting Market Momentum

While transaction volumes in 2026 still lag behind the exceptional levels of 2025, the shift from a summer slowdown to an acceleration signals a change in market momentum. May — June 2026 transactions were 61.5% lower than the equivalent period in 2025, but the year-on-year deficit narrowed to 44.0% for July, August 2026, indicating improving trends.

Espace's analysis also focused on a basket of five established family communities — Arabian Ranches, The Springs, The Meadows, Jumeirah Park, and The Lakes. This specific segment mirrored the citywide trend, with a 24.3% increase in activity from May, June to July, August 2026, contrasting with a 6.7% fall in 2025. The year-on-year decline for these communities in July, August 2026 was only 26.3%, less pronounced than the wider market's 44.0% decrease, suggesting a more robust recovery in prime, end-user-dominated areas.

Rental Market Resilience

The rental market provides a strong indicator of underlying demand, showing significant resilience despite the sales contraction. From May to August 2026, Dubai recorded 274,228 rental transactions (including new contracts and renewals), a decline of only 4.6% year-on-year compared to the same period in 2025. This contrasts sharply with the 53.4% year-on-year drop in secondary sales transactions over the same four months. This divergence suggests that the impact on purchasing activity was far greater than on occupier demand.

For instance, The Springs saw new rental contracts rise by 34.4% in July and August 2026, from 157 in 2025 to 211. John Lyons, Managing Director of Espace Real Estate, commented that "Sales activity experienced a major confidence shock, but rental activity remained far more resilient. That distinction matters when judging whether the sales recovery has a genuine occupier demand base underpinning it."

While these are clear signs of recovery, Espace cautions that this does not signify a return to the peak volumes of 2025. The recovery is also not uniform across all communities, with some areas like The Meadows showing lower activity in July — August than May, June due to reluctance from sellers to adjust price expectations.