Dubai Property Market Shows Signs of Life as Luxury Deals Surge Past Regular Sales
Luxury deals and rental demand show resilience amid broader market slowdown
Dubai’s residential property market posted modest gains in July, with apartment sales and high-value transactions leading a partial recovery that still falls well short of year-ago levels.
Overall sales transactions rose 2% month-on-month, while total transaction value climbed 3% over the same period, according to data from the Dubai Land Department. Those headline figures, however, obscure a more complicated reality. Year-on-year, transaction volumes remain 32% below July 2025 levels, and total transaction value has dropped 49% over the same twelve-month span.
The monthly improvement was uneven. Apartment sales led the way, climbing 5% from June. Villa and townhouse transactions moved in the opposite direction, falling 12% over the same period. Average transaction values also lagged, sitting 26% below July 2025 levels, according to analysis from betterhomes, a Dubai-based real estate firm.
The luxury segment told a different story. Transactions valued at AED15 million and above surged 22% month-on-month, with secondary market deals rising 31% from June and outpacing off-plan activity, which increased 17%. Despite that monthly strength, the luxury market remains under pressure on an annual basis, with overall luxury transactions down 46% year-on-year. Off-plan luxury deals bucked the broader trend, recording a 13% increase compared to July 2025.
Palm Jumeirah, Jumeirah Golf Estates and Dubai Hills Estate dominated transferred luxury property sales in July. Jumeirah Golf Estates 2 and Dubai Peninsula led off-plan luxury activity during the month.
Meanwhile, rental market demand has proven more resilient than sales activity. Enquiries about rental properties rose 21% year-on-year in July, even after declining 4% from June. Apartment rental enquiries performed strongest, increasing 25% year-on-year, while villa and townhouse rental enquiries fell 20% over the same period. That sustained tenant interest suggests renters have weathered the market disruption better than buyers.
Community-level rental demand concentrated in specific areas. Dubai Marina, Jumeirah Beach Residence, Downtown Dubai, Dubai Hills Estate and Jumeirah Village Circle attracted the strongest apartment rental enquiries. For villas and townhouses, Arabian Ranches, The Springs, Al Furjan, Tilal Al Ghaf and The Villa generated the highest tenant interest.
Richard Waind, CEO of betterhomes, read July’s data as a market finding its balance. “July’s numbers show a market finding its footing, transactions, values and luxury deals all picked up pace from June, even if the year-on-year comparison hasn’t caught up yet,” Waind said. “Tenants are still active, and combined with the month-on-month improvement we’re seeing across sales, that gives us a reasonably encouraging read heading into the second half of the year.”
The recovery follows a softer stretch earlier in 2025, when heightened regional uncertainty weighed on activity. The gap between month-on-month gains and year-on-year declines points to a market stabilizing rather than expanding broadly. Secondary market transactions and luxury deals have emerged as the strongest performers, while tenant demand has held steadier than buyer interest. Whether that divergence narrows as the year closes, or whether the gap between segments widens further, will shape how Dubai’s property market enters 2026.
Q&A
How did Dubai's residential property sales perform month-on-month in July?
Overall sales transactions rose 2% month-on-month, while total transaction value climbed 3% over the same period, according to Dubai Land Department data. Apartment sales led the way with a 5% increase from June, though villa and townhouse transactions fell 12%.
What does the year-on-year comparison reveal about the market's health?
Year-on-year, transaction volumes remain 32% below July 2025 levels, and total transaction value has dropped 49% over the same twelve-month span. Average transaction values also lagged, sitting 26% below July 2025 levels.
How has the luxury property segment performed?
Transactions valued at AED15 million and above surged 22% month-on-month, with secondary market deals rising 31% from June and outpacing off-plan activity, which increased 17%. However, overall luxury transactions remain down 46% year-on-year, though off-plan luxury deals recorded a 13% increase compared to July 2025.
What does rental market activity indicate about tenant demand?
Rental market demand has proven more resilient than sales activity, with enquiries about rental properties rising 21% year-on-year in July. Apartment rental enquiries performed strongest, increasing 25% year-on-year, while villa and townhouse rental enquiries fell 20% over the same period.