Dubai's property market continued to attract buyers in August, with both purchase intent and average prices rising despite renewed regional instability. Instead of pulling back, more buyers signaled plans to purchase soon: 71 percent of respondents in the latest Market Pulse report from Property Finder said they intend to buy within six months, up from 68 percent in July. Official figures from the Dubai Land Department back this up, recording 15,258 real estate transactions in August 2026 worth AED 41.35 billion. Off-plan sales made up nearly 68% of these deals, according to Khaleej Times and recent government statistics.
While regional tensions dominated the news, the numbers tell a different story. The average price per square foot rose from AED 1,271 in July to AED 1,301 in August, a 2.4 percent monthly increase. More than half of surveyed buyers still expect a price correction soon, but that hasn't slowed activity. The ValuStrat Residential Price Index shows a slight 0.2% dip from July and a 3.1% drop year-on-year, with apartment prices down 5.3% and villa prices down 1.7% compared to last year, as reported by Reuters. But these averages hide big differences between neighborhoods: 81% of tracked Dubai communities saw prices rise year-on-year, with Palm Jumeirah Garden Homes up 37% and Al Jaddaf apartments up 35.5%, based on Betterhomes analysis of Dubai Land Department data.
Buyers act despite price caution
The Market Pulse survey, which gathered responses from 4,113 active property seekers in July and August, shows a clear gap between what buyers say and what they do. Although 53 percent now expect prices to fall-down from 73 percent in March-interest in buying keeps climbing. Many buyers seem unwilling to wait for a correction that may not come. DXBinteract's August data recorded 12,018 sales worth AED 28.6 billion, with apartments making up 9,974 transactions and villas 1,354, showing steady demand for homes.
Sharif Suleiman, Chief Revenue Officer at Property Finder, called August a stress test for the market. He noted that while expectations shifted with regional events, actual demand stayed strong, with both purchase intent and average prices moving up. Suleiman credits this to deeper structural factors, not just short-term speculation. The Central Bank of the UAE (CBUAE) has also helped by keeping liquidity high and supporting mortgage activity, which has boosted buyer confidence, as referenced in recent WAM agency releases.
Demand holds firm as prices edge up
The report highlights a key split: buyers remain cautious about future prices, but that hasn't stopped them from acting now. The share of those expecting lower prices has dropped since March but is still above half. Even as the cost per square foot rises, more buyers are moving ahead with purchases. Cavendish Maxwell data shows the average sales price in August 2026 slipped to AED 1,636 per square foot, down 1.7% year-on-year and 1.3% over the previous three months, but this hasn't slowed the overall market.
The Market Pulse data reflects the intentions of active users on Property Finder, not all Dubai property transactions. Still, the combination of rising buyer intent and higher prices points to steady demand, even with ongoing uncertainty. These trends fit with the Dubai Economic Agenda D33, which aims to double the size of the emirate's economy and strengthen its position as a global investment hub, as outlined in Dubai Media Office briefings.
Other recent analyses have noted the growing influence of international buyers, such as Egyptians, on Dubai's property market, as reported earlier.
Dubai's property market continues to show resilience compared to many global cities. Buyers are still moving forward despite price caution and regional volatility, suggesting the market is supported by more than just speculation. For both investors and residents, demand in Dubai real estate remains strong, and those waiting for a major price drop may miss out as the market keeps moving upward.
