Dubai Adds 27,300 Homes in Q2 as Developers Slow New Launches

Dubai’s property market spent the past few years talking mainly about launches. New towers, payment plans and off-plan booking days often received more attention than completed buildings.

The second quarter of 2026 looked different.

Developers handed over approximately 27,300 homes, the highest quarterly delivery recorded in recent years. At the same time, new residential launches dropped sharply to 5,335 units, compared with more than 45,000 units in the previous quarter.

The two figures tell the real story. Dubai is not running out of housing demand, but the market is moving away from constant expansion and towards managing the large pipeline already under construction.

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Of the homes completed during Q2 2026, around 17,400 were apartments, while another 9,900 were villas and townhouses.

That mix matters. Apartments still formed the larger share, but nearly 10,000 newly completed villas and townhouses added meaningful supply for families looking for more space.

The arrival of 27,300 completed homes has increased the number of ready properties available across Dubai, particularly in communities designed around family living.

Dubai recorded 35,884 residential transactions during the second quarter. That was a 19 per cent decline from the previous quarter.

The drop came as buyers gained more options and became more selective. With additional completed homes entering the market, there is less pressure to reserve the first acceptable unit before someone else does.

Off-plan property still dominated, representing 76 per cent of all residential transactions. Dubai has not suddenly become a ready-property market. Buyers remain willing to commit to homes that are still being built, particularly when the developer, community and payment plan make sense.

What has changed is the speed of the decision.

Savills described the market as normalising rather than entering a broad correction. Demand remains visible in established communities and for well-located, high-quality properties, but purchasers can now compare more options and take longer before signing.

One of the less obvious figures from the quarter came from property valuations.

Refinancing accounted for around 70 per cent of all valuation instructions by the end of Q2. Historically, that share was closer to 30 per cent.

This suggests that many owners are choosing to restructure their borrowing rather than sell their properties. Refinancing can help owners adjust repayment terms, access equity or move to a different mortgage arrangement.

It also points to continued confidence in the longer-term value of Dubai property. Owners who expect a major decline usually think differently about holding additional debt against an asset. A rise from 30 per cent to 70 per cent shows that a large group still prefers to retain ownership.

The increase in completed supply has started to affect prices.

Average apartment prices fell by around 4 per cent quarter on quarter, reaching approximately Dh1,960 per square foot.

Villa and townhouse prices recorded a smaller decline of 0.8 per cent, bringing the average to Dh1,646 per square foot.

Savills’ review of comparable transactions found underlying price adjustments of around 5 to 7 per cent in many communities. Even after those changes, prices remained higher than they were a year earlier.

Rental conditions also softened. Annual Ejari registrations declined by around 22 per cent, while average rents across major residential communities fell by approximately 8 to 10 per cent.

More available homes have given tenants greater choice. A tenant who previously accepted a rent increase because moving felt difficult can now find more competing listings nearby.

While the wider market moderated, Dubai’s luxury segment remained active.

The emirate recorded 864 residential transactions worth more than Dh10 million during the quarter. Palm Jumeirah, Dubai Hills Estate and Jumeirah Golf Estates continued to account for a large share of high-value activity.

Q2 also included a record Dh280 million villa sale on Jumeirah Bay Island. Deals at this level are not a reliable guide to what is happening in an average apartment building.

Trophy waterfront homes and branded residences attract a narrow group of wealthy buyers whose decisions are less dependent on ordinary mortgage costs or small quarterly price movements.

Still, 864 transactions show that demand at the top end has not disappeared. Buyers are selective there as well, but genuinely rare homes continue to find buyers.

Savills maintained a positive long-term outlook for Dubai’s residential sector, pointing to population growth, inward migration, infrastructure spending and residency reforms.

The recently approved Dh34 billion Dubai Metro Gold Line is one of the major infrastructure developments expected to support future housing demand. Better transport links can change how buyers judge communities that currently feel distant from major employment and business areas.

Changes connected to property-linked residency are also expected to strengthen Dubai’s appeal among international investors and residents.

Dubai’s second-quarter figures do not fit neatly into either a boom or crash story.

Handovers reached approximately 27,300 units, while launches dropped to 5,335.

Transactions declined by 19 per cent, but off-plan homes still represented 76 per cent of sales. Apartment prices and rents eased, yet luxury deals remained active, and a Dh280 million villa changed hands.

The market is becoming more practical. Developers are spacing out supply. Buyers are taking longer. Tenants have more alternatives. Existing owners are refinancing instead of rushing to sell.

Reference: khaleejtimes.com