Overview
- ANAROCK reported on Monday that Dubai recorded about AED 225.7–226 billion in residential transactions in H1 2026, a 16% drop from H1 2025 but roughly 15% higher than H1 2024.
- Average residential prices rose about 6% year‑on‑year to nearly AED 1,900 per square foot in H1 2026 despite a 4–7% price softening in February–April and a roughly 34% peak fall in the DFM real estate stock index.
- The consultancy links the slowdown to a brief fall in buyer confidence after the late‑February 2026 US–Iran escalation, saying the correction was sentiment-driven and that activity began to recover after March–April.
- Structural supports helped absorb the shock: off‑plan sales made up roughly 70–77% of activity, about 80% of transactions were cash-funded, and 129,600 new investors entered the market in 2025.
- Dubai’s record 2025 sales, rising population and Golden Visa policy changes continue to underpin demand, so analysts say the market is likely to track shifts in buyer confidence and regional stability going forward.