Dubai's residential property market recorded a sharp slowdown in the third quarter of 2026, with home sales falling 47 per cent in value and 38 per cent in volume compared with the same period last year, according to a report published today. Total home sales reached Dh72.6 billion ($19.7 billion) in the three months to the end of September.
Analysts point to regional uncertainty as the main driver behind the pullback. A conflict that began in late February made buyers increasingly cautious, cooling a market that had previously been booming.
Ronan Arthur, director and head of residential valuation at Cavendish Maxwell, said purchasing activity became more measured in the weeks and months following the start of the conflict, with buyers adopting a more careful approach.
Despite the overall decline, off-plan properties continued to dominate the market, accounting for 65 per cent of total sales value and 72 per cent of all purchases during the quarter — underlining that demand for under-construction projects has held up more strongly than for the secondary market.
The figures suggest Dubai's property market, after years of rapid growth, has entered a more cautious phase, with buyers now weighing a wider range of factors before committing to a purchase.