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Dubai residential market Q3 2026 sees ready homes gain ground as off plan sales slow
Dubai’s residential property market moved in different directions during the third quarter of 2026. Ready-home transactions increased 11% from the previous quarter, while off-plan sales volumes declined 9%, according to Morgan’s International Realty’s Dubai Residential Market Report Q3 2026.
Across the market, 34,626 residential sales totalled AED 73.67 billion. Transaction volumes fell 4% quarter on quarter and 37.5% year on year, while sales value declined 17% and 52.2%, respectively. The quarterly strength in completed homes therefore sits within a market that remained substantially quieter than a year earlier.
Ready homes record a quarterly improvement
Completed properties recorded 9,765 transactions worth AED 26.86 billion, accounting for 28% of residential sales. Average transacted prices reached AED 1,914 per square foot, up 18% quarter on quarter and 21% year on year.
That improvement needs context. Despite the quarterly increase, ready-home transaction volumes remained approximately 44% below Q3 2025. Higher activity in this segment does not, on its own, establish a market-wide recovery. Average transacted prices also describe the homes sold during the period; they should not be read as an equivalent increase in the value of every completed property.
Elias Hannoush, Founder and CEO of Morgan’s International Realty, said: “Dubai’s residential market is showing greater differentiation. Completed homes gained activity this quarter while off-plan sales slowed. In our view, end users are an important source of support: their decisions are anchored in where and how they want to live, even when the wider environment is uncertain.”
Off plan retains the largest share of sales
Off-plan properties accounted for 72% of residential transactions, with 24,861 sales worth AED 46.81 billion. Although the segment continued to dominate activity, volumes declined 9% quarter on quarter and sales value fell 22%.
Average transacted prices decreased to AED 1,750 per square foot, down 9% from the previous quarter and approximately 14% from AED 2,036 in Q4 2025. Initial sales represented 91% of off-plan transactions, with resales accounting for 9%.
Rental activity rises while pricing eases
Residential rental registrations increased 34% quarter on quarter to 155,804. Renewals accounted for 83,916 registrations, or 54% of activity, while new contracts represented 71,888 registrations, or 46%.
Median annual rent per square foot nevertheless declined 6% to AED 87. The aggregate annual rental value represented by registered contracts reached AED 14.45 billion, up 42% from Q2. These measures capture different aspects of the market: more registrations and a higher aggregate contract value can coincide with a lower median rent per square foot.
Pricing discipline shapes the next phase
At 34,626 transactions, quarterly residential sales volumes were broadly comparable with late-2023 levels. Total sales value was within the range recorded during 2022 and early 2023. These historical comparisons put the slowdown in perspective, while the split between ready and off-plan activity shows why a single headline cannot describe every part of the market.
As Hannoush noted: “The next phase will test pricing discipline. Sellers and developers will need to pay closer attention to what buyers can choose from today, how their properties compare and the supply approaching completion.”
Morgan’s Dubai Residential Market Report Q3 2026 explores these differences in greater detail, including property-type and community pricing, high-value sales, leasing and scheduled supply.
Download the report
