Dubai’s real estate landscape is showing signs of resilience as the market recovers from recent fluctuations. According to the latest insights from Property Finder and Mortgage Finder, there has been a resurgence in residential transactions, with particular momentum observed in the secondary sales segment. With sellers halting further price reductions, the market appears to be stabilizing, making it an attractive time for buyers to consider properties in Dubai.

Transaction Growth and Increased Activity

Dubai’s property market saw a significant increase in sales volume from June to July 2026, with total transactions rising from 8,877 to 9,217 — a 3.8% increase. The monetary value of these transactions also grew by 5.2%, moving from AED 33.2 billion to AED 34.9 billion. This upswing is predominantly attributed to the secondary market, where transactions soared by approximately 18%, reaching 4.8K deals. This surge indicates a robust appetite for ready-to-move-in properties, especially among investors keen on securing a good deal before potential price hikes.

Apart from residential properties, commercial activity has also experienced a boost, with an increase of 24.8% in deal volume, totaling 397 transactions and reaching a value of AED 5.8 billion. This harmonized growth across different market segments illustrates the overall improvement in buyer confidence and willingness to invest.

Shifts in Buyer Sentiment

As buyers’ sentiment normalizes, the number of home seekers planning to purchase within the next six months climbed from 66% to 68%. Concurrently, the percentage of those anticipating further price declines dropped from 56% to 52%. This is a notable shift from the 73% peak observed following regional instabilities. Furthermore, the proportion of buyers expecting prices to stabilize or rise has increased from 44% to 48%, suggesting a growing sense of optimism in the market.

Sellers are also adapting to this changing sentiment. After a consistent decline in asking prices since March, the sale-listing price index has remained 2.5% below pre-conflict levels for the second month in a row. The discrepancy between listed and actual transaction prices, which had widened significantly, is now narrowing. This narrowing gap is indicative of converging expectations between buyers and sellers, fostering a more balanced market environment.

Market Trends: Apartments vs. Villas

A pronounced distinction has emerged between apartments and villas in the current market. Apartments regained their market share in July, climbing from 59.5% to 62.0% of sales leads. This shift is particularly evidenced by the increasing demand for studio and one-bedroom units, reflecting a preference among investors for properties that offer higher yield and better liquidity.

Data from Mortgage Finder illustrates that the return of investor confidence is notable, with the share of investor-contributed mortgage transactions rising from 9% to 12.8%. The most significant share of mortgage applications is coming from individuals earning between AED 20,000 and AED 59,999 per month, comprising 62.4% of total applications. On the other hand, applicants earning AED 60,000 and above are facing challenges in finding viable villa or townhouse options, potentially hindering market conversion at the higher tier.

Insights into Financing Trends

Analyzing the financing of purchases reveals distinct patterns between the two property segments. In July, of the 2,887 mortgages registered, worth AED 4.93 billion, apartments represented 81.9% of transaction volume. Yet, only 20.3% of apartment sales were financed through mortgages, contrasting significantly with 67.8% for villa sales. This disparity indicates that while apartments are often purchased with cash, villa transactions are more likely to involve financing, attracting owner-occupiers.

As the market continues to evolve, emerging trends in the leasing sector are also noteworthy. New lease transactions have surpassed pre-conflict benchmarks, supporting tenants’ migration to larger homes. Renewal rates are returning to pre-conflict averages, greatly facilitated by decreased rental rates.

Cherif Sleiman, Chief Revenue Officer at Property Finder, remarked that July’s data reflects a market regained momentum, with growing transaction volumes and values. He noted the significance of sellers halting further price reductions, as this aligns expectations and fosters a stable market outlook moving forward. The expectation is for this positive momentum to resonate throughout the second half of the year.

In summary, the Dubai market’s ongoing stabilization presents a promising landscape for potential buyers and investors. With improved buyer sentiment, rising transaction activity, and evolving preferences affecting market dynamics, there is ripe potential for a sustained recovery in residential real estate.