- Secondary sales jump 18% as sellers pause price cuts.
- 68% of villa sales are mortgaged, compared with 20% for apartments.
Dubai, United Arab Emirates, August, 2026 – Dubai’s residential market strengthened through July 2026, with sale transactions rising, seller price reductions pausing and buyers moving back into the ready market, according to the latest data from Property Finder and Mortgage Finder. Activity concentrated in the secondary segment and in apartments, where value-seeking investors re-entered through the mid-market and buyers moved to secure homes before pricing firms further.
Sale transaction volumes rose from 8,877 in June to 9,217 in July, up 3.8%, while transaction value climbed from AED 33.2 billion to AED 34.9 billion, up 5.2%. The increase came almost entirely from the secondary market, where volumes grew roughly 18%, from 4.1k to 4.8k, pointing to stronger appetite for ready stock. Commercial activity rose alongside it, with volumes up 24.8% to 397 deals and value reaching AED 5.8 billion.
Buyer sentiment continued to normalise. The share of home seekers planning to buy within six months edged up from 66% to 68%, while the proportion expecting further price declines fell from 56% to 52%, extending its correction from the 73% peak recorded immediately after the regional conflict. Those expecting prices to stay flat or rise rose from 44% to 48%.
Sellers moved in step. After a steady decline in asking prices from March, Property Finder’s sale-listing price index settled at 2.5% below the pre-conflict baseline for a second consecutive month. The gap between advertised and final transacted prices, which had widened to between 6% and 12% by May, narrowed to between 5.5% and 11% in July, a sign that buyer and seller expectations are converging.
A clearer divide opened between the two segments in July. Apartments regained share from villas and townhouses, rising from 59.5% to 62.0% of sale leads, with studios and one-bedroom units driving the gain, a sign of stronger investor appetite for higher-yield, more liquid stock. Mortgage Finder data pointed to the same return of investor confidence, with the investor share of mortgage transactions rising from 9% in June to 12.8% in July, concentrated in the middle-income bands. Applicants earning between AED 20,000 and 59,999 a month made up 62.4% of all mortgage applications, while higher earners above AED 60,000 continued to face a tighter villa and townhouse pipeline, a constraint that is likely limiting conversion at the top of the market.
Data from the Dubai Land Department (DLD) shows how differently the two segments finance those purchases. Of 2,887 mortgages registered in July, worth AED 4.93 billion, apartments accounted for 81.9% of volume, yet only 20.3% of all apartment sales involved a mortgage, against 67.8% of villa sales. Apartments are transacting largely in cash, consistent with an investor and off-plan buyer base, while villas skew toward financed, owner-occupier purchases.
Activity extended into rentals, where new leasing transactions ran 2% above the pre-conflict baseline and renewals returned to pre-conflict levels, supported by tenants using softer rents to move into larger homes and stronger communities.
Cherif Sleiman, Chief Revenue Officer at Property Finder, said, “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.”
About Property Finder:
Property Finder is a pioneering property portal in the Middle East and North Africa (MENA) region, dedicated to shaping an inclusive future for real estate while spearheading the region’s growing tech ecosystem. At its core is a clear and powerful purpose: To change living for good in the region. Founded on the value of great ambitions, Property Finder connects millions of property seekers with thousands of real estate professionals every day. The platform offers a seamless and enriching experience, empowering buyers, investors and renters to make informed decisions.
Since its inception in 2007, Property Finder has evolved into a trusted partner for developers, brokers, and home seekers. As a lighthouse tech company, it continues to create an environment where people can thrive and contribute meaningfully to the transformation of real estate in MENA.
Property Finder publishes a suite of market analysis reports across the UAE, spanning monthly, bi-monthly and quarterly insights.
