Dubai recorded its highest quarterly residential handover volume in recent years during Q2 2026, signalling a shift towards a more balanced market with greater housing choice and increasingly selective buyers.
July 23, 2026 | Tripti Mehta | UAE | Real Estate
Dubai's residential market recorded its highest quarterly delivery volume in recent years during the second quarter of 2026, with approximately 27,300 homes handed over, according to Savills' Dubai Residential Market in Minutes Q2 2026 report. The surge in completions significantly expanded the emirate's stock of ready homes as the market continued its transition towards a more balanced phase.
Apartments accounted for around 17,400 units, while 9,900 villas and townhouses were completed during the quarter, contributing to a broader increase in the availability of ready family housing. Major completions included LUCE on Palm Jumeirah, St. Regis The Residences, Financial Centre Road, Castleton at Central Park, Sunridge by Emaar, Raya Townhouses and The Valley – Elora, alongside DAMAC Lagoons – Costa Brava 2, Belmont Residences and Thyme.
The increase in completed homes comes as overall residential transactions moderated during the quarter. Dubai recorded 35,884 residential transactions in Q2, representing a 19% quarter-on-quarter decline. According to Savills, the moderation reflects a market moving towards normalisation as buyers become increasingly selective amid higher levels of available stock, rather than indicating a broad-based market correction.
The off-plan market remained dominant, accounting for 76% of all residential transactions, while activity in the ready market declined more sharply. Savills also noted that ready-market transaction volumes have largely stabilised since March at approximately 2,800 transactions per month, suggesting that the pace of adjustment may be moderating.
Developers also adopted a more measured approach to new supply. Approximately 5,335 residential units were launched during Q2, compared with more than 45,000 units in the previous quarter. The report attributes this to developers increasingly phasing new launches and extending delivery timelines from around three years to four years, helping distribute future supply over a longer period.
Commenting on the findings, Andrew Cummings, Head of Residential Agency at Savills Middle East, said, "What we're seeing is not a broad-based correction but rather a normalisation of activity as the market adjusts to higher levels of available stock and buyers become more selective. Demand remains present, particularly for well-located, high-quality homes and established communities, but purchasers now have greater choice and are taking more time to make decisions."
The increase in completed homes reflects a market that is gradually shifting from rapid expansion towards a more balanced phase. With more ready inventory entering the market and developers moderating new launches while extending delivery timelines, buyers are expected to benefit from greater choice. According to Savills, pricing performance is also becoming increasingly localised, with supply-constrained communities expected to remain more resilient than areas experiencing significant new supply.
Source: Savills Dubai Residential Market in Minutes Q2 2026 Report
