Housing sales in Dubai went down 16% YoY to AED 226 billion (Rs 587600 crore) in H1 2026, compared to corresponding period of last year, said a new report .
The West Asia conflict which started in the end of February this year briefly affected the Dubai property market. However , H1 2026 number was 15% higher than H12024, said a report by Anarock Property Consultants .
“The report highlights that while geopolitical tensions briefly affected buyer sentiment during March and April 2026, the correction was largely sentiment-driven – not structural,” Aayush Puri, CEO – residential, Middle East & CEO – Anarock Channel Partners (India).
Residential prices softened by just 4-7% in the February to April period, significantly outperforming the DFM Real Estate stock index, which crashed 34% at its peak – the widest sentiment-to-asset gap of any Dubai crisis on record, Puri said
Overall residential prices in Dubai in H1 2026 stood at nearly AED 1,900 per square feet. In the same period of 2025, it was AED 1,800 per sq.ft., amounting to a 6% yearly gain.
“The recovery has been underpinned by robust market fundamentals,” added Aayush Puri. ” Moreover, off-plan transactions consistently accounted for nearly 70–77% of market activity throughout the period, highlighting sustained buyer confidence despite short-term uncertainty.” he said.
The conflict early in 2026 tested Dubai’s residential market at a time when regional uncertainty was at its peak. In the months that followed, buyer activity returned steadily, prices remained resilient, and demand continued to be supported by strong structural fundamentals rather than speculative momentum, he added.
Beyond the immediate recovery, Dubai continues to benefit from its structural drivers. The city welcomed nearly 470 new residents every day during 2025, its population crossed 4.03 million, and residential sales reached a record AED 547 billion across 206,166 transactions in 2025, reflecting continued global investor interest. The expansion of Golden Visa eligibility for mortgaged properties is expected to further broaden the pool of eligible buyers, the report said.
Buyers that actively bought residential property in Dubai in 2025 hailed from over 150 countries – with India at the top (22%), followed by UK 17%, China 14%.
Over 1,29,600 new investors entered Dubai market in 2025, up 23% y-o-y; around 80% of transactions are cash funded, insulating the market from interest rate shocks, ur said .
About 38% buyers bought homes in Dubai for end-use, 28% buy-to-let income, 21% Golden Visa residency, while 13% capital preservation, it said.
