The Dubai property market delivered 38,000 new homes in the first nine months of 2026, up 41% annually. Property prices fell 2.2%, while mortgage values reached a record AED21.8 billion as buyers and tenants gained more options.
DUBAI: The Dubai property market delivered approximately 38,000 new residential units between January and September 2026, marking a 41% increase compared with the same period last year, according to property consultancy Cavendish Maxwell.
The surge in housing supply comes as residential prices decline, sales activity slows and Dubai enters a more measured phase following several years of strong property growth. Khaleej Times+1
Why are Dubai property prices falling?
Cavendish Maxwell’s third-quarter residential report shows average property prices declined 2.2% year-on-year to AED1,644 per square foot in September 2026.
Residential transactions totalled approximately 33,900 during Q3, generating AED72.6 billion in sales. Transaction volumes fell more than 38% annually, while sales values declined over 47%.
The Dubai property market is experiencing a cyclical correction as new housing supply increases, developers reduce launches and buyers become more selective.
Off-plan properties continued to dominate, accounting for more than 72% of transactions, although annual off-plan sales declined nearly 42%.
How many new homes will Dubai deliver in 2026?
Around 12,400 homes were completed during the third quarter, taking deliveries for the first nine months to 38,000.
Another 24,000 residential units are scheduled for handover before December 2026 ends, although actual completions will depend on construction progress.
Looking further ahead, approximately 136,100 homes are planned for 2027 and 155,700 for 2028, potentially adding nearly 292,000 properties to Dubai’s residential supply.
Are Dubai rents becoming more affordable?
Tenants are beginning to experience greater negotiating power as new homes enter the market.
Average residential rents reached AED77.3 per square foot annually in September, increasing 5.5% year-on-year. However, rental growth has slowed considerably.
More than 21% of rental renewals recorded reductions during Q3, compared with just 4.8% in the first quarter. Nearly 39% renewed at unchanged rates. Khaleej Times+1
Mortgage lending reaches new quarterly high
Despite softer property sales, mortgage values reached AED21.8 billion during Q3, the highest quarterly level recorded in the consultancy’s data.
Approximately 10,000 mortgage transactions were completed, representing a 33% quarterly increase.
Dubai South led off-plan apartment transactions, while Jumeirah Village Circle remained the leading location for ready apartment sales.
Luxury properties priced above AED20 million generated AED9.6 billion across 257 transactions, demonstrating continued high-value purchasing despite weaker annual activity.
Impact to expect
The expanding supply could make the Dubai property market more favourable for prospective buyers and tenants by increasing housing choices and improving negotiating opportunities. However, landlords and investors may face slower rental growth and greater competition, while future property prices will depend on demand, population growth and the pace of completed developments.
