Dubai Home Prices Fall For First Time In 5.5 Years As Market Enters Mature Cycle

(MENAFN- Khaleej Times) Dubai home prices recorded their first annual decline in five and a half years in August, signalling a shift towards a more measured property market after an extended period of strong sales and price growth, according to Cavendish Maxwell.

Average residential sales prices stood at Dh1,636 per square foot in August 2026, down 1.7 per cent from the same month last year. Prices also declined 1.3 per cent over the latest three-month period.

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This is the first year-on-year decline in average home prices since February 2021, during the Covid-19 pandemic, according to the property consultancy.

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Despite the price adjustment, Dubai residential sales reached Dh23.4 billion in August, taking the value of transactions since the beginning of 2026 to nearly Dh270 billion.

Nearly 10,900 homes sold in August

Around 10,900 homes changed hands during August, about 14 per cent fewer than in July, with Cavendish Maxwell partly attributing the decline to the traditional summer slowdown in buyer activity.

Off-plan properties continued to dominate the market, accounting for approximately 75 per cent of residential sales during August.

Transaction values during the first eight months of 2026 were, however, 24 per cent lower than during the same period last year.

Dubai property market enters mature cycle

Ronan Arthur, Director and Head of Residential Valuation at Cavendish Maxwell, said Dubai's residential market is moving towards a more measured phase following an extended period of exceptionally strong activity and sustained price increases.

“The August data confirms what our in-depth market insight - covering quarterly, six-month and annual statistics and trends - has been telling us for a while: prices are softening and the market is entering a more mature cycle,” he said.

Arthur said the fundamentals supporting demand for Dubai property remain intact, while fewer launches, regional uncertainty and a broader normalisation in buyer activity are shaping the near-term market.

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