Developers Hold Off-Plan Pricing Steady While Sales Volumes And Absorption Rates Adjust

(MENAFN- Khaleej Times) Developers in Dubai have largely held off-plan prices steady through 2026 as sales volumes and absorption rates adjust, according to fäm Properties.

44 of the 717 off-plan projects launched since July 2023 have reduced prices by 5 per cent or more since the end of February, while only 28 projects, or 4 per cent, are currently selling below their original launch price, as per the market analysis.

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The developer said that the first price reductions recorded in its analyses was in June, with project pricing being influenced by local area conditions. It added that the market has displayed strong resilience despite geopolitical developments of the last few months.

Among 574 projects launched since 2025, the median project, priced 4.2 per cent above the median price for its area, sold 73.8 per cent of its units. By comparison, projects priced 20 per cent or more above their area's median price old a median of 60 per cent of their units.

Increase in studio apartment sales

While registered developer apartment sales during the first eight months of 2026 totalled 62,147, down 6 per cent from the same period of 2025, the change was not evenly distributed across apartment types.

Studio sales increased 26 per cent to 21,728, while one-bedroom sales declined 18 per cent, two-bedroom sales fell 16 per cent and three-bedroom sales decreased 13 per cent.

Dubai South was a major contributor to the increase in studio transactions, with sales rising 185 per cent to 11,147 during the first eight months of the year.

“Pricing is beginning to decide how quickly projects sell out,” said Firas Al Msaddi, Founder and CEO of fäm Properties.“Developers have generally been reluctant to reduce their headline prices, so where a project is positioned against comparable properties is having a greater bearing on its sales performance.”

Al Msaddi added that more than nine out of ten projects have retained their launch pricing, indicating that the adjustment in the market has been more evident in sales volumes and absorption than in widespread reductions to launch prices.

“The relationship between pricing and absorption is particularly relevant as developers compete across an increasingly broad range of projects and locations,” he said.“Projects priced closer to prevailing market levels are recording higher median sales absorption than those carrying a substantial premium over their local market.”

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