betterhomes’ analysis of Dubai Land Department DLD data shows tenant demand holding firm and gains concentrated in apartments and luxury transactions, even as the annual comparison remains softer.
Dubai’s residential property market recorded a modest improvement in July, with overall sales transactions rising 2% and total transaction value increasing 3% month-on-month, according to Dubai Land Department DLD transaction data.
The improvement follows a softer period earlier in the year, when heightened regional uncertainty weighed on market activity.
The gain was led by apartment sales, while activity above AED 15 million rose 22%, pointing to stronger performance across selected segments rather than a broad-based rise across the market.
The annual comparison remains softer, with overall transaction volumes 32% lower than in July 2025 and total transaction value down 49% year-on-year.
Apartment sales drive July increase:
Apartment transactions were the main contributor to July’s month-on-month growth, rising 5% from June.
Villa and townhouse transactions moved in the opposite direction, declining 12% over the same period and highlighting a more uneven pattern of activity across property types.
Average transaction value was 26% below July 2025 levels. The contrast between improving monthly activity and weaker annual figures suggests the market is steadying following that earlier disruption, while remaining below the higher transaction volumes recorded a year ago.
Luxury deals AED 15M+ rise 22%
Luxury activity told an even stronger story: prime transactions of AED 15 million and above rose 22% month-on-month, led by the secondary market, where deals rose 31% from June, outpacing a 17% increase in off-plan activity. Year-on-year, the overall luxury segment is down 46%, even as off-plan luxury transactions alone are still up 13% over the same period.
Palm Jumeirah, Jumeirah Golf Estates and Dubai Hills Estate led transferred luxury deals in July, while Jumeirah Golf Estates 2 and Dubai Peninsula topped off-plan activity.
betterhomes’ own data shows tenant demand remains resilient:
betterhomes’ own enquiry data shows tenants remained active in the market in July. Enquiries about rental properties rose 21% year-on-year, even after easing 4% month-on-month, a sign that tenant interest has held up over the past year.
That demand was strongest for apartments, where leasing enquiries rose 25% year-on-year, while villa and townhouse enquiries fell 20% over the same period. The strongest community-level demand came from Dubai Marina, Jumeirah Beach Residence, Downtown Dubai, Dubai Hills Estate and Jumeirah Village Circle for apartments, and Arabian Ranches, The Springs, Al Furjan, Tilal Al Ghaf and The Villa for villas and townhouses.
A market finding its footing:
Taken together, July’s figures point to a market settling into a steadier rhythm after an unusually turbulent stretch, rather than one still losing ground. The segments to watch next are the secondary and luxury markets, which led July’s gains, and tenant demand, which the enquiry data suggests has held up better than buyer interest.
“July’s numbers show a market finding its footing, transactions, values and luxury deals all picked up pace from June, even if the year-on-year comparison hasn’t caught up yet,” said Richard Waind, CEO of betterhomes. “Tenants are still active, and combined with the month-on-month improvement we’re seeing across sales, that gives us a reasonably encouraging read heading into the second half of the year.”
About betterhomes:
betterhomes is Dubai’s longest-standing independent real estate brokerage, part of Cencorp, a group spanning sixteen companies across residential, commercial and professional real estate services. Since 1986, betterhomes has supported buyers, sellers, landlords and tenants across Dubai with data-led market insight and end-to-end property services.
