Dubai Property Prices: New Supply Impact May Emerge In Coming Months

(MENAFN- Khaleej Times) Dubai's property market has so far avoided the widespread distressed selling some buyers expected this year, but the impact of new housing supply on asking prices could become more visible in the coming months, according to Dubizzle Group.

Speaking at a media briefing in Dubai on Wednesday, Matt Gregory, Senior Director of Strategy at Dubizzle Group, said the sharp price correction anticipated by some market participants had not materialised in the company's advertised prices.

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It is estimated that Dubai will see around 56,600 new residential units by year-end.

He added that new supply had not yet significantly affected asking prices in the communities Bayut tracks.

Bayut's third-quarter 2026 report showed the residential market stabilising, with limited changes in asking prices across most popular communities. The fourth-quarter report, expected in January, should show more clearly how additional homes are affecting prices.

Stable prices, with luxury exceptions

Average asking prices per square foot for affordable and mid-tier properties generally moved by less than 3 per cent during the quarter. Most luxury and ultra-luxury segments recorded changes within 2 per cent.

Four-bedroom villas in Al Barari were a notable exception, with average asking prices up 8.2 per cent quarter-on-quarter to Dh29.6 million. On Palm Jumeirah, four-bedroom villas averaged Dh44.1 million.

Bayut recorded about 15 million platform visits in the quarter, up 25 per cent from Q2, while listings rose 6 per cent. The increase came despite the summer months, when activity typically slows as residents travel overseas. Gregory said the figures reflected continued interest across affordable, mid-market and luxury communities.

Haider Ali Khan, CEO of Bayut and Board Member of the Dubai Chamber of Digital Economy, said the range of communities attracting interest reflected the diversity of Dubai's residential market.

“Across many of the popular areas in our report, asking prices have remained broadly steady, giving people more room to compare their options and plan their next move,” he said.

Apartments: Palm Jumeirah leads

Palm Jumeirah remained one of the most searched locations for ultra-luxury apartments, with average asking prices up 3.4 per cent quarter-on-quarter to Dh3,490 per square foot. Bluewaters Island and Al Barari also drew interest in this segment.

In the luxury category, Dubai Marina, Downtown Dubai and Dubai Hills Estate remained among the most searched communities.

Jumeirah Village Circle (JVC) and Business Bay continued to attract mid-tier buyers, with average asking prices of Dh1,419 and Dh2,158 per square foot respectively.

Among more affordable options, Dubai Silicon Oasis led searches, followed by Dubai Sports City and Dubai South. Studios in Dubai Silicon Oasis averaged Dh556,000, while one-bedroom apartments averaged Dh856,000.

Villa demand remains strong

Dubai Hills Estate, Arabian Ranches, Al Barari and Palm Jumeirah remained popular for luxury and ultra-luxury villas.

In the mid-tier segment, DAMAC Lagoons led villa searches, with average asking prices of Dh1,499 per square foot. Arabian Ranches 3 and Al Furjan also drew interest.

For affordable villas, DAMAC Hills 2, Rukan and Dubai South remained popular. DAMAC Hills 2 recorded an average asking price of Dh1,054 per square foot.

Rental yields reach 10 per cent in selected areas

Bayut's analysis also identified communities with comparatively high estimated rental yields.

For affordable apartments, Dubai Investments Park recorded 9.5 per cent, followed by Discovery Gardens at 8.5 per cent and Remraam at 8.4 per cent. Living Legends recorded 7.5 per cent in the mid-tier apartment category, while Al Sufouh offered 7.1 per cent for luxury apartments.

Among villas, Deira recorded an estimated 10 per cent in the affordable segment, while The Sustainable City offered 6.1 per cent for mid-tier villas.

The figures are estimated gross rental yields based on advertised prices, not guaranteed investment returns.

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