Dubai's Real Estate Market Shows Signs of Stabilization

Summary:

Dubai's real estate market is stabilizing after a turbulent first half of 2026, with residential price declines slowing. The ValuStrat Residential Price Index fell 4% quarter-on-quarter, totaling a 10% decline since February, but monthly declines eased significantly. Average villa values are Dh13 million (up 2% year-on-year), while apartments average Dh1.79 million (down 3%). Rental performance remains stable, with rents rising 1.7% annually. Supply delays, with only 20,000 homes completed, and rising construction costs impact the market. Meanwhile, the commercial sector thrives, with office values up 3.7% quarterly and industrial values rising 8.4%.