Dubai's Residential Market Displays Stability Amid Transaction Decline

Summary:

Dubai's residential property market shows resilience despite a 55% drop in transaction values from December 2025 to May 2026. While transaction volumes decreased by 29% year-on-year in Q2 2026, prices per square meter fell only 10%, indicating stability. The rental market has also remained steady, with new contracts down 4.8% but renewals up 3.1%. Analysts attribute the slowdown to the US-Iran war but expect the market to normalize. Meanwhile, Abu Dhabi's market is thriving, with residential values up 21.6% year-on-year, highlighting investor confidence in the UAE.