Dubai’s residential market tilted toward completed properties in the third quarter of 2026, with secondary sales climbing and rental enquiries breaking records, according to Better Homes’ Q3 market report.
Total residential sales held steady at 34,615 transactions, broadly flat against Q2. But the composition shifted. Secondary transactions rose 16 per cent quarter-on-quarter to 10,055, lifting their share of all sales from 24 per cent to 29 per cent and their share of total sales value from 30 per cent to 37 per cent, reaching AED 27.1 billion.
Apartments led the move, with secondary apartment transactions up 22 per cent to 7,879. Villa and townhouse secondary volumes were largely unchanged.
Prices eased over the quarter but remained above year-ago levels. September median prices came in at AED 1,404 per sq ft for apartments and AED 1,638 for villas and townhouses, down 2.4 per cent and 2.3 per cent respectively from June but still 2.2 per cent and 4.1 per cent higher than a year earlier.
Around three quarters of the communities covered by the report recorded lower prices per sq ft than in Q2, though around two thirds remain above their year-ago levels.
“Q3 tells us the market is moving into a more selective phase. Buyers are showing a clear preference for ready homes they can use or let straight away, while record leasing enquiries show that rental demand remains strong. At the same time, rents are becoming more competitive. As we move into the final quarter, I expect the strongest activity to stay concentrated in well-priced homes in established communities, rather than lifting the whole market equally. That puts much more emphasis on pricing, property type and location,” Richard Waind, CEO, betterhomes said in a statement.
On the rental side, Better Homes leasing enquiries rose 45 per cent from Q2 and 15 per cent year-on-year, reaching the highest quarterly level the brokerage has recorded.
September alone came in 31 per cent above September 2025. Dubai’s population stood at 4,807,185 on September 29, an increase of 226,885 since the start of the year, according to the Dubai Data and Statistics Establishment, providing a structural base for accommodation demand.
Despite record enquiry volumes, rents moved in the opposite direction. Median rents per square foot fell 3.8 per cent for apartments and 2.3 per cent for villas and townhouses between June and September.
The report draws a clear distinction between interest levels and achievable rents, noting that pricing continues to vary considerably by community and property type.
“September brought the highest level of leasing enquiries we have recorded, while rents became more competitive in parts of the market. That is good news for tenants, but it also gives landlords a clear message: demand is there, provided the property is priced correctly for its community and property type,” Jacob Bramley, Leasing Manager, betterhomes added.
Sales enquiries picked up sharply heading into Q4. Better Homes recorded a 27 per cent increase in sales enquiries in September compared with August, well above the 5 per cent month-on-month gains seen over the same period in 2024 and 2025.
Overall quarterly sales enquiries remained below last year’s levels, but the September rebound suggests renewed buyer interest is building.
