Dubai’s residential market posted a second consecutive month of stabilisation in July 2026, with sale volumes, transaction values and buyer confidence all moving in the same direction, according to data from Property Finder and Mortgage Finder.
Sale transactions rose 3.8 per cent from June to July, from 8,877 deals to 9,217, while total transaction value climbed 5.2 per cent to AED 34.9 billion from AED 33.2 billion.
The secondary market drove most of that growth, with ready-stock volumes up roughly 18 per cent, from around 4,100 deals to 4,800. Commercial activity strengthened alongside residential, with volumes up 24.8 per cent to 397 deals and value reaching AED 5.8 billion.
“July confirms a market that has moved back into growth, with transaction volumes and values rising together and buyers returning with real intent. The more telling signal sits beneath that growth: sellers have paused further price cuts and the gap between asking and achieved prices is narrowing, which brings the two sides of a deal closer together and turns a single strong month into a lasting trend. We expect that momentum to carry through the second half of the year,” Cherif Sleiman, Chief Revenue Officer at Property Finder said in a statement.
Buyer sentiment continued to shift. The share of home seekers planning to purchase within six months edged up from 66 per cent to 68 per cent, while the proportion expecting further price declines fell from 56 per cent to 52 per cent, extending a correction from the 73 per cent peak recorded immediately after the regional conflict earlier this year. Those expecting prices to hold flat or rise moved from 44 per cent to 48 per cent.
On the supply side, seller asking prices appear to have found a floor. Property Finder’s sale-listing price index held at 2.5 per cent below its pre-conflict baseline for a second consecutive month, after a steady decline from March. The gap between advertised and final transacted prices, which had widened to between 6 per cent and 12 per cent by May, narrowed to between 5.5 per cent and 11 per cent in July.
Apartments regained ground over villas and townhouses, rising from 59.5 per cent to 62.0 per cent of sale leads, with studios and one-bedroom units leading the move. The shift points to stronger investor demand for higher-yield, more liquid stock.
Mortgage data reflected the same trend. The investor share of mortgage transactions rose from 9 per cent in June to 12.8 per cent in July, concentrated in the middle-income bands. Applicants earning between AED 20,000 and AED 59,999 per month made up 62.4 per cent of all mortgage applications in July.
Dubai Land Department figures showed how differently the two segments are being financed. Of 2,887 mortgages registered in July, worth AED 4.93 billion, apartments accounted for 81.9 per cent of volume by number, yet only 20.3 per cent of apartment sales involved a mortgage, compared with 67.8 per cent of villa sales. Apartments are transacting largely in cash, consistent with an investor-heavy buyer base, while villas skew toward financed, owner-occupier purchases.
The rental market also showed signs of recovery, with new leasing transactions running 2 per cent above the pre-conflict baseline and renewals returning to pre-conflict levels, supported by tenants using softer rents to upgrade into larger homes and better-located communities.
