Dubai's residential market saw sales activity easing slightly in August, with 17,710 transactions. This was a drop off 5.9% from July.

The total value of deals reached AED 42 billion, reflecting an 18.6% monthly dip.

Yet, when compared to August 2024, both transaction volumes and values were up by a solid 10%, highlighting the market’s steady year-on-year strength.

Despite the seasonal slowdown, prices held firm, with the average sales price per square foot edging up 2.1% to AED 1,932. This resilience shows that while monthly figures can fluctuate, the broader trend for Dubai’s property market remains firmly upward.

Demand continues to favour off-plan developments, which accounted for 73% of all transactions, emphasising buyer appetite for future projects and long-term value.

Notably, Binghatti, EMAAR, and Sobha Group led the market in total off-plan sales value.

Apartments remained the preferred choice among buyers, with one-bedroom units representing nearly half of all transactions (46.6%). In contrast, interest in the larger layouts of villas and townhouses was higher, with 46.3% of villa buyers opting for four-bedroom homes, indicating a clear preference for family-sized living.

Betterhomes recorded an 11% rise in buyer leads, with apartments accounting for most enquiries. Investors made up the majority of buyer profiles at 59%, with end users accounting for 41%, demonstrating that Dubai’s market continues to attract global capital.

Alongside buyer preferences, financing trends underscore a maturing and accessible lending environment. Mortgage-backed purchases outweighed cash, with financing comprising 58% of activity.

“August reminded us that confidence in Dubai’s property market runs deep. The 10% year-on-year growth in transaction value indicates that Dubai remains a magnet for both investors and families. Even as sales activity eased slightly, prices still rose to AED 1,932 per square foot. At Betterhomes, we saw an 11% increase in buyer enquiries, a clear signal that market confidence endures,” said Cristopher Cina, Director of Sales at Betterhomes.

A strong month for new contracts

Dubai’s rental market maintained its pace, with transaction volumes hitting 41,504, a 5.7% month-on-month lift. 

The momentum was powered by more new move-ins, with new contracts rising to 18,186 and accounting for 44% of activity, up from 40% in July. Renewals eased to 23,196 (56%), signalling a market where fresh leases are growing even as many tenants remain in their existing accommodation. On a yearly basis, volumes were down 10%, an acceptable adjustment given the natural variations in the renewal cycle.

Rental growth stood out in Jumeirah’s villa market, where average annual rents climbed 4.2% to AED 539,000. In the apartment segment, Mirdif saw the highest increase, rising 5.5% to AED 88,000.

August brought a 38% rise in tenant enquiries at Betterhomes, indicating a strong uptick in leasing demand month-on-month. Apartments topped the list at 47%, followed by townhouses at 32%. Most tenants opted for flexible rental payment options, with one-cheque and four-cheque payments remaining the most common at 30% and 32% respectively.

“August was a month of fresh starts. Nearly half of all leasing activity came from new contracts; it’s clear that many people are choosing to make this city their home. Tenant leads at Betterhomes rose 38%, showing that demand is not only resilient but expanding, positioning Dubai as one of the world’s most competitive rental markets,” said Rupert Simmonds, Director of Leasing at Betterhomes.