Dubai Property Sales Accelerate; Luxury Segment Surges 22% in July

Dubai’s residential property market posted a modest but measurable recovery in July 2026, with sales transactions rising 2% from June and the aggregate value of deals climbing 3% over the same period. The improvement, drawn from Dubai Land Department data as cited by betterhomes, follows a sluggish first half of the year in which regional instability had suppressed trading activity across the emirate.

The annual comparison, however, remains stark. Transaction volumes in July sat 32% below July 2025 levels, the total value of deals fell 49% year-on-year, and the average transaction price was 26% lower than the same month last year. Recovery, in other words, is real but partial.

Additional reference context is available at https://www.indexbox.io/blog/dubai-property-market-shows-modest-recovery-in-july-2026/.

Apartment sales carried the month-on-month rebound, advancing 5% from June. Villa and townhouse transactions moved in the opposite direction, declining 12% over the same period. That divergence points to a market regaining its footing selectively, concentrated in one segment rather than advancing evenly across property categories.

The luxury segment outpaced the broader market by a considerable margin. Deals exceeding AED15 million rose 22% month-on-month, with the secondary market leading the charge. Secondary luxury transactions climbed 31% from June, outpacing off-plan sales, which gained 17% over the same period. Palm Jumeirah, Jumeirah Golf Estates and Dubai Hills Estate were the top locations for completed luxury deals in July, while Jumeirah Golf Estates 2 and Dubai Peninsula led off-plan activity in the high-end segment.

The annual picture for luxury remains subdued overall, with the segment down 46% year-on-year. Off-plan luxury transactions alone bucked that trend, sitting 13% above their July 2025 level. That gap between new-build and secondary performance suggests different underlying dynamics within the premium market, with off-plan activity showing greater resilience.

Meanwhile, rental demand has proven more durable than purchase activity. Betterhomes’ inquiry data shows rental property enquiries increased 21% year-on-year, despite a 4% dip from June. Apartment leasing enquiries led the way, up 25% year-on-year, while villa and townhouse enquiries dropped 20% over the same period. Dubai Marina, Jumeirah Beach Residence, Downtown Dubai, Dubai Hills Estate and Jumeirah Village Circle topped apartment rental interest. Arabian Ranches, The Springs, Al Furjan, Tilal Al Ghaf and The Villa dominated villa and townhouse enquiries.

Richard Waind, CEO of betterhomes, characterized July’s figures as evidence of a market regaining equilibrium, with transactions, values and luxury deals all accelerating from June. He noted that tenant activity remains robust and, combined with month-on-month improvements in sales, points to a fairly optimistic outlook for the remainder of the year.

The gap between monthly and annual metrics tells the clearest story about where Dubai’s property market stands: recovering from an unusually volatile stretch earlier in 2026, but not yet back to the transaction volumes and values recorded a year ago. Whether the secondary luxury segment and apartment rental demand can sustain their current momentum through the second half of the year is the question the market has yet to answer.