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Dubai's residential property market witnessed a 16% year-on-year decline in housing sales during the first half of 2026, with total transactions worth AED 225.7 billion, as geopolitical tensions in West Asia affected buyer sentiment, according to real estate consultancy Anarock.

Despite the slowdown, Dubai's housing market showed strong resilience, with demand gradually recovering after the initial impact of regional uncertainty. Property prices saw a temporary decline of 4-7% between February and April, but market activity stabilised in the following months.

Aayush Puri, CEO – Residential, Middle East at Anarock, said Dubai recorded AED 225.7 billion (around Rs.5.3 lakh crore) worth of residential transactions in the January-June period of 2026.

"Dubai's residential market faced a major test during the early months of 2026 due to heightened geopolitical uncertainty. However, buyer activity returned steadily, prices remained stable, and demand continued to be supported by strong market fundamentals rather than speculative interest," Puri said.

While sales were down compared with 2025, the figure was still 15% higher than 2024, indicating continued long-term strength in Dubai's real estate sector.

Anarock highlighted that off-plan property transactions accounted for nearly 70-77% of overall market activity during the period, reflecting continued investor confidence despite short-term challenges.

The consultant noted that Dubai's residential sector continues to benefit from strong structural factors, including sustained demand from global investors, economic stability and the city's position as a major international real estate hub.