Dubai Property Market Avoids Distressed Selling, New Supply Impact Looms

Dubai’s property market has so far escaped the widespread distressed selling that some buyers had anticipated this year, but the effect of new housing supply on asking prices could become more apparent in the coming months, according to Dubizzle Group.

Speaking at a media briefing in Dubai on Wednesday, Matt Gregory, Senior Director of Strategy at Dubizzle Group, said the sharp price correction that some market participants had expected had not materialised in the company’s advertised prices.

He added that new supply had not yet significantly affected asking prices in the communities tracked by Bayut, the group’s property platform.

Prices Hold Firm Across Most Communities

Bayut’s third-quarter 2026 report showed the residential market stabilising, with limited changes in asking prices across most popular communities. The fourth-quarter report, due in January, is expected to reveal more clearly how additional homes are influencing prices.

Average asking prices per square foot for affordable and mid-tier properties generally moved by less than 3 percent during the quarter. Most luxury and ultra-luxury segments recorded changes within 2 percent.

A notable exception was four-bedroom villas in Al Barari, where average asking prices rose 8.2 percent quarter-on-quarter to 29.6 million dirhams. On Palm Jumeirah, four-bedroom villas averaged 44.1 million dirhams.

Bayut recorded about 15 million platform visits in the quarter, up 25 percent from the second quarter, while listings increased 6 percent. The rise came despite the summer months, when activity typically slows as residents travel abroad. Gregory said the figures reflected sustained interest across affordable, mid-market and luxury communities.

Haider Ali Khan, CEO of Bayut and Board Member of the Dubai Chamber of Digital Economy, said the range of communities attracting interest reflected the diversity of Dubai’s residential market.

“Across many of the popular areas in our report, asking prices have remained broadly steady, giving people more room to compare their options and plan their next move,” he said.

Apartment and Villa Demand

Palm Jumeirah remained one of the most searched locations for ultra-luxury apartments, with average asking prices up 3.4 percent quarter-on-quarter to 3,490 dirhams per square foot. Bluewaters Island and Al Barari also drew interest in this segment.

In the luxury category, Dubai Marina, Downtown Dubai and Dubai Hills Estate remained among the most searched communities. For mid-tier buyers, Jumeirah Village Circle (JVC) and Business Bay continued to attract attention, with average asking prices of 1,419 and 2,158 dirhams per square foot respectively.

Among more affordable options, Dubai Silicon Oasis led searches, followed by Dubai Sports City and Dubai South. Studios in Dubai Silicon Oasis averaged 556,000 dirhams, while one-bedroom apartments averaged 856,000 dirhams.

For villas, Dubai Hills Estate, Arabian Ranches, Al Barari and Palm Jumeirah remained popular in the luxury and ultra-luxury segments. In the mid-tier category, DAMAC Lagoons led villa searches, with average asking prices of 1,499 dirhams per square foot. Arabian Ranches 3 and Al Furjan also drew interest. For affordable villas, DAMAC Hills 2, Rukan and Dubai South remained popular. DAMAC Hills 2 recorded an average asking price of 1,054 dirhams per square foot.

Rental Yields Reach Double Digits

Bayut’s analysis also identified communities with comparatively high estimated rental yields. For affordable apartments, Dubai Investments Park recorded 9.5 percent, followed by Discovery Gardens at 8.5 percent and Remraam at 8.4 percent. Living Legends recorded 7.5 percent in the mid-tier apartment category, while Al Sufouh offered 7.1 percent for luxury apartments.

Among villas, Deira recorded an estimated 10 percent in the affordable segment, while The Sustainable City offered 6.1 percent for mid-tier villas. The figures are estimated gross rental yields based on advertised prices, not guaranteed investment returns.