Housing Sales in Dubai Declines 16 Pc in Jan-Jun to AED 226 Bn Amid West Asia Conflict

Real estate consultant Anarock, which has a presence in India and the UAE property markets, noted that Dubai's residential real estate market demonstrated notable resilience during and following the regional geopolitical tensions earlier this year.

"Dubai recorded AED 225.7 billion worth of residential transactions in the first half of 2026, representing 15% growth against 2024 but dropping 16% against 2025," said Aayush Puri, CEO - Residential, Middle East, Anarock.

While geopolitical tensions briefly affected buyer sentiment during March and April 2026, the correction was largely sentiment-driven, not structural, he added.

Residential property prices softened by just 4-7% in the February to April period.

Anarock said the overall residential prices in Dubai in H1 2026 stood at about AED 1,900 per sq ft compared to AED 1,800 per sq ft in the year-ago period.

"The conflict early in 2026 tested Dubai's residential market at a time when regional uncertainty was at its peak. In the months that followed, buyer activity returned steadily, prices remained resilient and demand continued to be supported by strong structural fundamentals rather than speculative momentum," Puri said.

The consultant added that demand recovered steadily once ceasefire efforts progressed.

As per the data,sales in the residential segment reached a record AED 547 billion across 2,06,166 transactions in 2025, reflecting continued global investor interest.

Buyers who actively bought residential properties in Dubai in 2025 hailed from more than 150 countries, with India ranking at the top (22%), followed by the UK at 17% and China at 14 per cent.

More than 1,29,600 new investors entered the Dubai market in 2025, up 23% annually.