Dubai Property Prices Stabilise For First Time in 5.5 Years

Dubai's residential market is showing signs of maturing after several years of exceptional growth, with average prices easing modestly in August, according to the latest data from Cavendish Maxwell.

Average residential sales prices stood at Dh1,636 per square foot in August 2026, a slight adjustment of 1.7 per cent from the same month last year, following a sustained period of strong price appreciation. Prices moved 1.3 per cent over the latest three-month period, reflecting the market's transition into a steadier growth phase.

Despite this recalibration, transaction activity remained strong, with Dubai residential sales reaching Dh23.4 billion in August alone, bringing total transaction value since the start of 2026 to nearly Dh270 billion.

Around 10,900 homes changed hands during the month, a level consistent with the seasonal summer slowdown typically seen in buyer activity. Off-plan properties continued to lead the market, accounting for approximately 75 per cent of residential sales, underlining sustained buyer confidence in upcoming supply.

Ronan Arthur, Director and Head of Residential Valuation at Cavendish Maxwell, said, "The August data confirms what our in-depth market insight, covering quarterly, six-month and annual statistics and trends, has been telling us for a while: prices are softening and the market is entering a more mature cycle."

Arthur added that the fundamentals supporting demand for Dubai property remain intact, with fewer new launches and a broader normalisation in buyer activity shaping the near-term outlook.

A gentle easing in prices after such an extended growth cycle points to a market finding its natural balance rather than losing momentum. With transaction values still running into billions of dirhams monthly and off-plan demand holding firm at three-quarters of sales, Dubai's property market appears to be settling into a more sustainable, long-term growth pattern.

Source: Khaleej Times, Cavendish Maxwell