Dubai residential sales rise 5% to AED 35B in July

Dubai’s residential property market rebounded in July.

Dubai residential property sales transactions rose from 8,877 in June to 9,217 in July, up 3.8%, while sales value climbed from AED 33.2 billion to AED 34.9 billion, an increase of 5.2%, according to the latest data from Property Finder and Mortgage Finder.

Dubai residential sales growth in July 2026

According to Property Finder, the increase was mainly driven by the resale market, where sales transactions jumped about 18% from 4,100 to 4,800, indicating rising demand for ready properties. Commercial activity also increased, with the number of transactions up 24.8% to 397, totaling AED 5.8 billion in value.

Key indicators of real estate sales growth in July 2026

Dubai's residential real estate market witnessed a rebound in July, with a rise in transaction volumes, sellers halting price reductions, and buyers returning to the ready property market.

Activity was focused on the secondary market and apartment segment, as value-seeking investors shifted back to the mid-market category and buyers sought to secure their homes ahead of price stabilization.

According to Mortgage Finder, investor confidence returned, with their share of mortgage transactions rising from 9% in June to 12.8% in July, mainly concentrated in the mid-income segment.

Applicants with a monthly income between AED 20,000 and AED 59,999 accounted for 62.4% of total mortgage applications. Meanwhile, those earning more than AED 60,000 continued to face limited supply of villas and townhouses, which is likely to drive demand toward higher-priced market segments.

The Dubai Land Department highlighted different financing patterns between the two segments. Of 2,887 registered real estate mortgages in July, valued at AED 4.93 billion, apartments accounted for 81.9% of the volume. However, only 20.3% of total apartment sales used mortgage financing, compared to 67.8% of villa sales.

Key Property Finder data for Dubai’s real estate market in July 2026

Buyer sentiment continued to improve, with the share of those searching for homes and planning to buy within six months rising from 66% to 68%. Meanwhile, the proportion of respondents expecting further price declines fell from 56% to 52%, extending a correction from the 73% peak following the regional conflict. The share of buyers forecasting stable or higher prices increased from 44% to 48%.

The Property Finder sale listing price index in July was 2.5% below the pre-conflict baseline for the second straight month, after a continued slide since March.

The gap between advertised and final transaction prices narrowed from a 6%-12% range in May to 5.5%-11% in July, indicating closer alignment between buyer and seller expectations.

In July, apartment market share recovered for villas and townhouses, climbing from 59.5% to 62% of total purchase requests, with studios and one-bedroom units leading demand.

Activity expanded to the rental segment, with new lease contracts surpassing pre-conflict levels by 2%, and lease renewals returning to previous levels, mainly as tenants took advantage of lower rents to move to larger homes or better neighborhoods.