Dubai Residential Real Estate Market Q3 2026: Trends, Prices and Outlook

Dubai's residential real estate market recorded 35,665 transactions worth AED 75.84 billion in Q3 2026. Sales volumes moderated by 2.7% quarter-on-quarter, while transaction values declined more sharply by 14.1%, reflecting a lower average ticket size and a changing balance between off-plan and secondary sales.

Download Full Report -  Latest Dubai Q3 Residential Market Report 2026

Off-plan properties continued to account for more than seven in ten residential transactions, although off-plan volumes moderated by 9.3% during the quarter. In contrast, completed-property transactions increased by 18.1%, giving the secondary market a larger share of overall activity. Meanwhile, apartment and villa prices, rental values and yields reflected different trends across the two segments.

So, what do these developments tell us about Dubai's residential market? Let's look at the key findings from Reliant Surveyors' Q3 2026 Dubai Residential Market Report.

Key Takeaways: Dubai Residential Market Report -Q3 2026

• Dubai recorded 35,665 residential sales worth AED 75.84 billion in Q3 2026 (volume −2.7%, value −14.1% on Q2).
• Off-plan made up 70.7% of sales, while secondary-market transactions rose 18.1%.
• Apartments averaged AED 1,784.1 per sq. ft., and gross yields were 6.74% for apartments against 4.45% for villas.
• About 1.03 million homes could be completed by 2028 if the pipeline is delivered as projected.

1. Dubai Residential Market: Q3 2026 Overview

Dubai recorded 35,665 residential transactions during the quarter, with a combined value of AED 75.84 billion. This represented a 2.7% quarterly moderation in volume and a 14.1% quarterly decline in value.

Off-plan properties accounted for 25,226 transactions, representing 70.7% of total sales volume. The secondary market recorded 10,439 transactions, an 18.1% increase compared with Q2 2026.

The average residential transaction value stood at AED 2.13 million, compared with AED 2.41 million in the previous quarter.

Key Market Indicators

Indicator	Q3 2026
Total transactions	35,665 (−2.7% QoQ)
Transaction value	AED 75.84 billion (−14.1% QoQ)
Off-plan market share (volume)	70.7%
Secondary transactions	10,439 (+18.1% QoQ)
Average transaction value	AED 2.13 million

The figures highlight the continued contribution of off-plan developments alongside growing activity in completed residential properties.

2. Off-Plan vs Ready Properties in Dubai: Q3 2026 Sales

Off-plan properties continued to lead Dubai's residential market, recording 25,226 transactions worth AED 47.96 billion. This represented 63.2% of total residential transaction value, although off-plan volumes moderated by 9.3% quarter-on-quarter.

The secondary market generated AED 27.88 billion, with transaction volumes increasing by 18.1% quarter-on-quarter.

Both segments cater to different buyer requirements. Off-plan purchases involve considerations such as developer credentials, payment plans, project location and delivery timelines. Ready properties allow buyers to assess the completed asset, surrounding infrastructure and existing rental potential.

The distribution of transactions across these segments provides useful insight into buyer preferences and the changing composition of Dubai's residential market.

3. Dubai Apartment Market: Prices and Rental Trends

Apartments accounted for approximately 88% of residential transaction volume, recording 31,350 transactions worth AED 49.78 billion.

Off-plan apartments represented 73.2% of apartment sales volume, while secondary-market transactions increased by 19.2% quarter-on-quarter to 8,387.

Apartment Market Indicators – September 2026

·       Average sales price: AED 1,784.1 per sq. ft.

·       Quarterly sales-price movement: −0.4%

·       Average rental value: AED 114.4 per sq. ft. per year

·       Quarterly rental-value movement: −4.9%

Apartment prices recorded relatively measured quarterly movement, while rental values experienced a sharper adjustment.

For investors, comparing achievable rental income with acquisition values provides an important starting point when evaluating potential returns. Community, property specifications, building quality and tenant demand also influence individual property performance.

4. Dubai Villa Market: Sales and Rental Performance

The villa segment recorded 4,315 transactions worth AED 26.06 billion during Q3 2026.

Off-plan villas accounted for 52.4% of transaction volume, while secondary-market activity increased by 14.1% quarter-on-quarter. Interestingly, completed villas generated AED 13.18 billion in transaction value, slightly exceeding the AED 12.88 billion recorded for off-plan villas.

Villa Market Indicators – September 2026

·       Average sales price: AED 2,299.9 per sq. ft.

·       Quarterly sales-price movement: −1.1%

·       Average rental value: AED 99.7 per sq. ft. per year

·       Quarterly rental-value movement: −2.3%

Villa pricing and rental performance reflect the characteristics of a different residential segment. Factors such as plot size, built-up area, community infrastructure, property condition and location remain important when assessing individual assets.

5. Which Communities Recorded the Highest Transactions?

Community-level activity provides a closer look at where residential transactions were concentrated during Q3 2026.

The leading locations across the four residential categories were:

Property segment	Leading communities
Off-plan apartments	Azizi Venice, Jebel Ali Downtown, City of Arabia
Ready apartments	Jumeirah Village Circle, Business Bay, Dubai Marina
Off-plan villas	Damac Island City, Dubai Investment Park First, Sobha Sanctuary
Ready villas	Damac Lagoons, Damac Hills 2, Mudon

Jumeirah Village Circle led the ready-apartment segment with 1,219 transactions, while Azizi Venice recorded 3,898 off-plan apartment transactions.

These rankings highlight the geographical distribution of buyer activity. However, transaction volumes should be considered alongside achieved prices, rental performance, property specifications and available inventory when evaluating individual communities.

6. Residential Supply: What Lies Ahead?

Dubai's residential housing stock is projected to reach approximately 670,667 units by the end of 2026, compared with 612,086 units in 2025.

The development pipeline includes:

·       2026: 58,581 additional units projected.

·       2027: 225,389 units scheduled for completion.

·       2028: 133,552 units scheduled for completion.

If delivered as projected, Dubai's total completed residential inventory could approach 1.03 million units by 2028.

Apartments and serviced apartments account for approximately 84% of completed residential stock, while villas represent 16%. A similar distribution is visible in the development pipeline, with apartments representing 85% of units under construction.

As new projects progress, their location, property mix and delivery timelines will influence how additional inventory is absorbed across Dubai's residential communities.

7. Apartment vs Villa Rental Yields

Rental yields remain an important consideration for residential property investors.

In September 2026, apartments recorded an average gross rental yield of 6.74%, compared with 4.45% for villas, a gap of 2.29 percentage points.

Property type	Gross rental yield
Apartments	6.74%
Villas	4.45%

The difference reflects the relationship between rental income and capital values across the two property categories.

Investors should also account for service charges, maintenance, vacancy periods and financing expenses when assessing net returns, as gross rental yields do not represent the final income generated by a property.

8. Dubai Residential Market Outlook: 2027 Onwards

Looking ahead, residential supply, financing conditions and affordability will remain important considerations for Dubai's property market.

Three areas deserve attention:

·       Supply and Market Absorption: With a substantial number of units scheduled for completion in 2027 and 2028, the pace of handovers and the distribution of new inventory across communities will be important indicators.

·       Financing Conditions: Mortgage availability, borrowing costs and lending requirements will continue to influence purchasing decisions and buyer affordability.

·       Affordability and Buyer Preferences: Property prices, rental commitments and household purchasing capacity will shape demand across different residential segments and locations.

Monitoring these factors alongside transaction activity and rental performance will help provide a clearer understanding of how Dubai's residential market evolves beyond 2026.

Conclusion

Dubai's residential market in Q3 2026 reflected a changing transaction composition. Off-plan properties retained the largest share of transactions despite a quarterly moderation, while the secondary market recorded stronger quarterly participation. Apartments continued to dominate residential sales, while villas maintained distinct pricing and rental characteristics. Across both segments, rental values recorded greater quarterly adjustments than sales prices.

With a substantial development pipeline ahead, supply, financing and affordability will remain important areas to watch.

Explore the Complete Dubai Residential Market Report

At Reliant Surveyors, our research and valuation capabilities draw on market evidence and property-level analysis to support informed real estate decisions. Our quarterly market reports provide an insight into the trends and developments shaping Dubai's residential property landscape.

The full report provides a detailed examination of transaction activity, off-plan and secondary sales, community rankings, residential supply, sales and rental price trends and gross rental yields.

Read the Full Dubai Residential Market Report – Q3 2026 to access the complete market analysis, supporting data and research insights.

Frequently Asked Questions

1. Is the Dubai residential market slowing in Q3 2026?

Activity moderated in Q3 2026: Dubai recorded 35,665 residential sales, down 2.7% on Q2, worth AED 75.84 billion, down 14.1%. Off-plan volume fell 9.3%, while completed-property transactions rose 18.1%. Apartment prices moved by 0.4% down and villa prices by 1.1% down over the quarter.

2. Which Dubai communities had the most residential transactions in Q3 2026?

The leading communities differed by segment. Off-plan apartments: Azizi Venice (3,898 transactions), Jebel Ali Downtown and City of Arabia. Ready apartments: Jumeirah Village Circle (1,219), Business Bay and Dubai Marina. Off-plan villas: Damac Island City, Dubai Investment Park First and Sobha Sanctuary. Ready villas: Damac Lagoons, Damac Hills 2 and Mudon.

3. Is off-plan or ready property more popular in Dubai?

Off-plan is more popular by volume: it made up 70.7% of Dubai residential transactions in Q3 2026 (25,226 sales) and 63.2% of value (AED 47.96 billion). Ready properties are gaining ground, with 10,439 secondary transactions, up 18.1% on Q2, worth AED 27.88 billion.

4. What is the average price per sq. ft. in Dubai in September 2026?

Dubai apartments averaged AED 1,784.1 per sq. ft. in September 2026 and villas averaged AED 2,299.9. Apartment prices moved 0.4% down on the quarter and villas 1.1% down. Average rents were AED 114.4 per sq. ft. a year for apartments (4.9% down) and AED 99.7 for villas (2.3% down).

5. What are the rental yields for apartments and villas in Dubai?

Apartments recorded an average gross rental yield of 6.74% in September 2026, against 4.45% for villas, a gap of 2.29 percentage points. These are gross yields from the REIDIN series, so service charges, maintenance, vacancy periods and financing costs reduce the net return.

6. How much new housing supply is coming to Dubai?

Dubai's housing stock is projected to reach about 670,667 units by the end of 2026, up from 612,086 in 2025, with 225,389 units scheduled for 2027 and 133,552 for 2028. If delivered as projected, completed stock could approach 1.03 million units by 2028. Delivery depends on construction progress and handover timelines.

Source: Reliant Surveyors Research, REIDIN Data Sets Q3 2026. Gross rental yields are as reported in the REIDIN yield series.

Disclaimer: This article is intended for general market information purposes only. It does not constitute investment, valuation or transaction advice. Scheduled residential supply is subject to construction progress and actual project handover timelines.