Dubai’s residential property market returned to growth in July, with sales volumes rising 3.8% from 8,887 transactions in June to 9,217, while total transaction value increased 5.2% to AED 34.9 billion. The recovery was led by stronger secondary-market and apartment activity, alongside improving buyer sentiment, pointing to a market finding firmer footing after a period of greater price sensitivity.
Original article: Dubai property market rebounds as sales rise and investors return by Arabian Business.
Key Insights:
Secondary Market Growth Shows Buyers Are Acting on Value
Secondary-market transactions increased by roughly 18% in July, rising from around 4,100 to 4,800 deals and accounting for most of the month’s overall sales growth. This stronger appetite for ready properties suggests buyers are responding to opportunities in existing stock as expectations of further price declines ease. For investors, greater activity in the secondary market also points to improving confidence in current valuations as buyers become more willing to re-enter the market.
Apartments Are Leading Renewed Investor Demand
Apartments increased their share of sales from 59.5% to 62%, with studios and one-bedroom homes driving activity as demand strengthened across more accessible and liquid property types. Mortgage activity also increased, rising from 9% in June to 12.8% in July, while applicants earning between AED 20,000 and AED 59,999 per month accounted for 62.4% of Mortgage Finder applicants. Dubai Land Department data also showed that apartments represented 81.9% of the 2,887 mortgages registered during July, highlighting continued financing activity across this segment even as the majority of apartment purchases were completed without a mortgage.
Improving Buyer Sentiment Points to Greater Market Stability
Buyer expectations are becoming more constructive, with the share of home seekers planning to purchase within six months increasing from 66% to 68%, while those expecting further price declines fell from 56% to 52%. The gap between advertised and final transaction prices also narrowed to between 5.5% and 11% in July, compared with 6% to 12% in May. This convergence indicates that buyers and sellers are moving closer on pricing, supporting healthier price discovery and a more balanced foundation for activity through the second half of the year.
What July's Rebound Signals for Dubai Real Estate
July’s performance points to a more measured market environment following a period of greater caution. Buyers have become more selective, sellers are adjusting expectations, and transaction activity is strengthening as both sides gain greater clarity on value. Rather than a return to the rapid growth of previous years, this reflects a market increasingly shaped by underlying fundamentals and more considered purchasing decisions.
The composition of demand is equally important. Activity is strengthening across apartments and established secondary properties, while commercial transactions also rose 24.8% to 397 deals worth AED 5.8 billion. Rental activity increased as well, with new leasing transactions 2% above the pre-conflict baseline as tenants took advantage of softer rents to move into larger homes. Together, these movements show activity improving across several parts of Dubai’s property market rather than relying on a single source of demand.
For investors, the latest figures reinforce the importance of property selection as the market matures. Pricing, rental demand, liquidity and location fundamentals are becoming increasingly important considerations, while improving buyer sentiment and stronger transaction activity provide encouraging signs for the second half of the year. July’s rebound therefore points to renewed confidence emerging from a period of recalibration, creating a more balanced foundation for Dubai’s residential property market.
