Off-Plan vs Secondary Market in Dubai Q2 2026

Q2 2026 marked a slower quarter for Dubai's property market. Sales volumes softened after two years of growth, and buyer activity became more measured. Off-plan property was the clear exception. It made up most transactions, while the resale market saw a decline. The latest report explains what drove the gap between the two markets and what it means for anyone planning to buy or rent a home in the months ahead.

Key takeaways

- Off-plan sales made up 76% of all residential transactions in Q2 2026 (26,338 deals), up from 68% in Q1.

- Secondary market volumes dropped 59% year-on-year to 8,512 transactions.

- Total transaction value reached AED 84.9 billion, down 45% year-on-year, as resale sales value fell 69% and off-plan recorded a 15% decline.

- Luxury transactions above AED 15 million fell 59% year-on-year to 578 deals, while off-plan luxury transactions increased 27%.

- Apartments averaged AED 1.79 million and villas AED 13.77 million.Dubai real estate market Q2 2026 at a glance

Residential property sales reached 34,850 transactions in Q2 2026, down 31% year on year and 22% from Q1. Off-plan sales accounted for 76% of transactions, while the secondary market made up the remaining 24%.

This points to a market that is beginning to normalise after two years of unusually high activity.

The total value of residential transactions reached AED 84.9 billion, down 38% from the previous quarter. Transaction value eased more than transaction volume because the biggest change came in the secondary market, where homes sell at higher prices than off-plan units.

The comparison below highlights the difference between the two segments.

Metric (Q2 2026)

Off-Plan

Secondary (Resale)

Share of total transactions

76%

24%

Number of transactions

26,338

8,512

Transaction volume (YoY)

-12%

-59%

Transaction volume (QoQ)

-12%

-41%

Transaction value (YoY)

-15%

-69%

Source: Q2 2026 report

How did off-plan and secondary property perform in Q2 2026?

Off-plan sales accounted for 76% of Dubai’s residential transactions in Q2 2026, with 26,338 sales compared with 8,512 in the secondary market.

Off-plan transaction volume fell 12% year on year, while resale transactions dropped 59%. Transaction value also held up better in the off-plan market, falling 15% compared with 69% in the secondary market.

Despite the wider slowdown, most residential investment during the quarter remained focused on Dubai’s off-plan projects.

Average sale prices changed across property types despite lower transaction volumes. Dubai Land Department data for Q2 2026 shows:

- Apartments averaged AED 1.79 million, down 12.3% from AED 2.05 million in Q2 2025.

- Townhouses averaged AED 3.65 million, up 15.4% from AED 3.17 million.

- Villas averaged AED 13.77 million, up 6.4% from AED 12.94 million.Price per square foot increased year on year in most communities. At the city level, however, the average residential sale price eased 5.9% from the previous quarter, although it remained 3.2% higher than a year ago. The decline in the market-wide average reflects a change in the mix of properties sold.

Year-on-year price growth was highest in the following communities:

- Palm Jumeirah Garden Homes (villas): 37.1%

- Al Jaddaf (apartments): 35.5%

- Living Legends (apartments): 27.2%

- Meydan (apartments): 21.4%

- Jumeirah Islands (villas): 20.1%

- The Meadows (villas): 17.0%

- Meydan (villas): 14.6%In the luxury market, transactions above AED 15 million fell 59% year-on-year overall. Off-plan luxury sales, however, increased 27%, while activity in the resale luxury market declined.

Palm Jumeirah, Palm Jebel Ali, La Mer, The Oasis, and Downtown Dubai generated the highest number of secondary luxury transactions. In the off-plan market, buyers preferred The Oasis, Dubai Hills Estate, Palm Jebel Ali, Nad Al Sheba and Palm Jumeirah. The difference suggests buyers showed more interest in newly launched luxury developments than in luxury resale properties during the quarter.

Why did off-plan sales outperform the secondary market in Q2 2026?

Off-plan outperformed because buyers could secure lower upfront costs, longer payment plans, and newly launched projects despite weaker market sentiment. Off-plan sales eased by 12% year on year and 12% quarter on quarter to 26,338 sales. The segment also increased its share of total residential transactions to 76%, up from 68% in Q1 2026.

Secondary market activity slowed more sharply, with transactions down 59% year on year and 41% quarter on quarter to 8,512 sales. Resale buyers tend to react more quickly to changes in sentiment, which contributed to a slowdown during the regional uncertainty in March and April.

data showed new secondary MOUs signed in June reached 96% of the June 2025 level. Residential transactions also increased from 9,536 in May to 12,185 in June, a 28% month-on-month rise. The June figures indicate buyer activity picked up as market conditions became more stable.

Choosing between off-plan and secondary property

The Q2 2026 figures offer encouraging signs for those who want to buy a flat in Dubai this year. Lower transaction volumes do not point to structural weakness. The slowdown aligned more closely with regional uncertainty and the timing of transaction registrations than with a lasting change in market direction.

A few trends stand out from the quarter:

- Price per square foot increased year-on-year in most communities despite fewer transactions.

- Cash purchases represented 61% of sales. Buyers still had substantial purchasing power.

- Developers maintained a steady project delivery pipeline during the quarter.The choice between off-plan and secondary property depends on budget and preferred ownership timeline.

Off-plan: suits buyers who prefer staged payments, a lower upfront cost and flexible payment plans before handover.

Secondary property: suits buyers who want immediate ownership, established neighbourhoods and a completed home.

Final thoughts

The Dubai residential market report for Q2 2026 points to a market that became more selective after two exceptionally active years. The off-plan segment had most residential transactions, developers in Dubai maintained a steady delivery pipeline, and price growth held firm in several established communities. The quarter also showed that buyer demand is still there for well-priced homes in sought-after locations, even as overall transaction volumes declined.

Tenants and buyers trying to stay updated can explore ' Dubai real estate blogs for quarterly market reports, area guides, and buying or renting advice. Each article explains Dubai Land Department data, rental trends, and developer activity in practical terms. As a top real estate agency in Dubai, combines years of market data with current property listings. That gives buyers and tenants the latest market insights alongside properties that match their requirements.