The real estate market in Dubai continued to cool off in the third quarter of 2026. After we had already noted in Q2 that the market was entering its first correction phase in several years, the latest figures confirm this trend.
In the third quarter, approximately 37,700 real estate sales were recorded. Compared to the exceptionally strong same quarter of the previous year, this represents a decline of about 36%. The total transaction volume amounted to approximately AED 93.6 billion.
It is interesting to note, however, that the significantly lower number of transactions has not yet led to a comparable decline in prices.
Market conditions have nevertheless changed noticeably compared to 2024 and 2025. Sales processes are taking longer, price negotiations have slowed, and buyers once again have more choices. High-quality properties in sought-after locations continue to hold their value relatively well, while there is significantly more room for negotiation when it comes to interchangeable properties or those with asking prices that are too high.
New construction projects remain the most important component of the market. Off-plan properties accounted for about 68% of all sales in Q3. At the same time, buyers are once again comparing projects and developers more closely. Location, quality, payment plans, and the right entry price are thus becoming increasingly important.
In September, the slowdown intensified once again. With approximately 11,480 sales, the number of transactions was down by about 44% compared with the same month last year. At the same time, the median price was slightly below the previous year’s level.
This trend is generally of interest to buyers and investors. The selection is wider, the pressure on sellers to negotiate is increasing, and attractive buying opportunities are once again emerging for individual properties. However, the days when virtually every property automatically benefited from a rising overall market are likely over for the time being.
Conclusion:
Q3 2026 confirms the slowdown in Dubai’s real estate market that was already evident in the second quarter. The number of transactions has declined significantly, while prices have remained relatively resilient so far.
After several exceptionally strong years, the market is becoming more selective again. Consequently, quality, location, and the right entry price are becoming increasingly important for investors.
The fourth quarter will now be decisive. With the start of the traditionally stronger winter season, it will become clear whether demand will stabilize at its current level or whether the correction will continue.