Off-plan sales continued to dominate Dubai’s property market in early 2026, even as the pace of new launches slowed and buyers grew more selective about where they put their money, according to industry experts.
Cavendish Maxwell’s Research Manager, Ali Siddiqui, reported that off-plan deals made up close to three-quarters of all residential transactions in Dubai, with roughly 49,700 recorded in the first five months of the year — a modest pullback from the same period in 2025. New project launches fell sharply over the same window, thinning out the flow of fresh stock.
Separate analysis from betterhomes pointed to a similar slowdown in May, with off-plan volumes and apartment pricing both easing back, largely due to a shorter trading month around Eid and fewer new launches. Even so, off-plan deals still accounted for the bulk of transaction volume. Betterhomes’ Harry Martin noted that buyer appetite hasn’t disappeared so much as sharpened — projects priced sensibly per square foot, particularly just outside the premium core, are still attracting strong local and international commitment. He added that buyers increasingly favour developers with a proven three-year delivery record, viewing that consistency as a mark of credibility.
Investors still lead the way
Indus Real Estate’s Rajiv Ghanekar said overseas investors remain the dominant force behind off-plan demand, citing Dubai Land Department figures showing off-plan sales made up around three-quarters of total transactions between April and June. Studios and one-bedroom units accounted for roughly two-thirds of that activity — a signal, he said, that many buyers are chasing rental yield and residency eligibility rather than a home to live in.
A recent DLD change scrapping the minimum property value for a renewable UAE residency visa has made that path easier, Ghanekar noted, provided the property is completed and holds a title deed.
Flexible payment structures have become the norm, he added — buyers typically covering 20–30% during construction with the balance due later, often stretched over post-handover periods of two to three years. Incentives such as DLD fee waivers, service-charge holidays and golden visa processing have helped move stock quickly at developments like Dubai South’s Hayat Townhouses, while some developers are offering discounts of up to 30% for larger upfront payments.
A record penthouse sale
Demand at the very top of the market hasn’t slowed either — Union Square House closed a AED200 million ($54.5 million) penthouse sale at Bugatti Residences by Binghatti in Business Bay this month, working out to roughly AED9,780 per square foot, according to founder Gaurav Aidasani.
Mortgages entering earlier in the process
A notable shift is underway in how off-plan purchases are financed. Dhiren Gupta of 4C Mortgages Consultancy explained that banks are now partnering directly with major developers — including Emaar, Dubai Holding, Aldar, Sobha, Damac and others — to offer mortgage pre-approval from the point of booking, rather than only once a project nears completion. Buyers still need to self-fund up to a 50% equity threshold before the bank steps in, but knowing their financing terms upfront gives far greater certainty, Gupta said. He believes the model should help reduce handover-stage mortgage defaults and reflects a broader shift toward a more institutional, transparent market.
Abu Dhabi gaining ground
Interest is also building beyond Dubai. Equity’s founder Emrah Yar said close to 70% of the firm’s off-plan transactions are now in Abu Dhabi, as investors diversify toward markets with strong government backing. He pointed to more than 80 off-plan sales completed in the capital since the recent regional conflict, worth over AED 400 million, with Modon, Wasl, Aldar and Beyond among the most active developers. Down payments as low as 5%, alongside discounts and fee waivers, have helped sustain momentum, and Yar expects a strong second half of the year for the emirate.
Andrew Covill, Director of Henry Wiltshire International, said Abu Dhabi developers have eased down-payment requirements to 3–5%, down from the usual 10%, while pushing second payments out to 2027. He noted that Henry Wiltshire has recently sold out townhouses and villas at Hudayriyat Golf Estates, apartments at Yas Park Place, and townhouses and villas at The Orchids in Yas Acres, alongside strong sales of studios and one-bedroom units at Lu’Luat, Al Raha Beach. He attributed the momentum to Abu Dhabi’s growing population and business base, particularly the continued expansion of ADGM.
Source: Zawya – 27 July 2026
