Dubai registered 86 residential transactions valued at US$10 million or more in the third quarter of 2026, according to Knight Frank, with Palm Jumeirah leading activity despite a quarterly slowdown in luxury property sales.
October 27, 2026 | Palak Kataria | UAE | Real Estate | 3 Min Read
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Dubai recorded 86 residential property transactions valued at US$10 million or more during the third quarter of 2026, generating AED5.77 billion (US$1.57 billion) in sales, according to research from global property consultancy Knight Frank.
The transactions, completed between July and September, included 13 homes sold for more than US$25 million.
Despite the continued activity at the upper end of the market, the number of sales declined compared with both the previous quarter and the corresponding period last year.
The findings indicate a more selective period for Dubai's luxury residential market following several years of rising prices and strong transaction activity.
The 86 transactions recorded in the third quarter represented a 34% decline from the 131 deals completed during the second quarter of 2026.
The figure was also below the 103 transactions registered in the third quarter of 2025.
However, activity across the first nine months of 2026 remained ahead of the previous year.
Knight Frank recorded 412 residential transactions above US$10 million between January and September, compared with 357 during the same period in 2025.
The combined value of these transactions reached approximately US$6.67 billion.
Faisal Durrani, Partner and Head of Research for MENA at Knight Frank, attributed some of the slowdown to uncertainty surrounding regional geopolitical developments.
The consultancy also noted that prices across Dubai's 10 prime residential neighbourhoods declined by 5% between the second and third quarters, marking the first quarterly decrease since 2020.
Palm Jumeirah remained Dubai's most active community for residential sales above US$10 million.
The island recorded 27 transactions during the third quarter, with a combined value of AED2.01 billion.
These deals represented approximately 31% of qualifying sales by volume and 35% by value.
The quarter's largest individual transaction, valued at AED260 million, was also recorded on Palm Jumeirah.
Jumeirah Second followed with 10 transactions worth AED594.9 million, while Emirates Hills registered seven sales valued at AED542.5 million.
Dubai Hills Estate and Jumeirah Golf Estates each recorded six qualifying transactions.
Villas continued to dominate the upper end of Dubai's residential market.
Of the 86 transactions above US$10 million, 55 involved villas, representing approximately 64% of the total.
The remaining sales comprised other residential property types.
Within the ultra-luxury segment, 73 transactions fell between US10millionandUS25 million, generating AED3.93 billion.
A further 13 transactions exceeded US$25 million, contributing AED1.84 billion.
Although these 13 deals represented approximately 15% of the total number of luxury transactions, they accounted for nearly 32% of the segment's sales value.
Transaction activity declined progressively during the quarter.
July recorded 36 sales worth AED2.04 billion, followed by 32 transactions valued at AED2.08 billion in August.
September registered 18 transactions worth AED1.65 billion.
However, sales above US$25 million increased in value over the same period.
The combined value of these transactions rose from AED376.1 million in July to AED609.8 million in August and AED849.5 million in September.
This suggests that exceptionally high-value purchases continued even as the overall number of transactions decreased.
Knight Frank's findings point to a market where high-value transactions remain significant, but sales volumes and prime prices are showing signs of adjustment.
The consultancy reported that Palm Jumeirah prices had declined by 9.1% over the preceding 12 months, with an average of AED4,083 per square foot.
Louis Harding, Partner and Head of UAE Residential at Knight Frank, indicated that buyers were increasingly focused on properties intended for personal use or holidays rather than short-term resale.
The report also noted that summer typically brings a seasonal decline in transactions.
Dubai's ultra-luxury residential market therefore enters the final quarter of 2026 with continued high-value activity, alongside a more cautious pricing and transaction environment.
Sources: Knight Frank; Khaleej Times
