Key takeaways
- Market stabilisation: The overall Residential ValuStrat Price Index (VPI) stood at 219.2 points in July, down marginally by 0.3% from the previous month and 1.6% lower year-on-year.
- Apartment adjustments: The citywide weighted average apartment capital value stood at AED 1,786,625. While some communities faced declines, others like Dubai Silicon Oasis recorded annual growth of 6%.
- Villa performance: Villa capital values slipped just 0.4% month-on-month, holding broadly stable annually, with areas like Jumeirah Islands logging strong gains (+15% YoY).
- Ready-homes rise: Ready-home transactions increased by 11.4% month-on-month to 3,546 deals, signaling a continued shift towards the secondary market.
How did Dubai's apartment sector perform in July 2026?
Featured in Khaleej Times, ValuStrat's latest market research reveals that Dubai’s residential property market showed signs of measured adjustment in July, progressing toward stability. The ValuStrat Price Index (VPI) noted that overall apartment values eased 0.2% month-on-month, leaving the segment 4.2% below its level a year earlier. The citywide weighted average apartment capital value came in at AED 1,786,625, or AED 1,397 per square foot.
While specific central and luxury locations recorded adjustments—with Burj Khalifa seeing values down 19% year-on-year, followed by Jumeirah Beach Residence (-15.1%) and Town Square (-8.4%)—not every community was in decline. Areas offering accessible price points showed resilience. Dubai Silicon Oasis gained 1.3% monthly and led annual growth at 6%, followed by Dubai Sports City (+5.4%) and Al Quoz Fourth (+5%). Despite the recent cooling, older freehold apartment prices remain 69% above their post-pandemic levels.
What trends emerged in the villa and transactional segments?
The villa market displayed considerable stability. Capital values slipped slightly by 0.4% month-on-month in July, with annual growth across villas holding broadly steady at 0.0%. The strongest annual gains were logged in established communities such as Jumeirah Islands (+15%), Emirates Hills (+9.1%), and The Meadows (+7.1%). The citywide weighted average villa capital value stood at AED 12,989,628. Overall, the Residential VPI stood at 219.2 points in July, which ValuStrat notes suggests the market is moving toward stability following a prolonged period of expansion.
Sales transaction data indicated a continued shift toward the ready homes segment. Ready-home transactions rose 11.4% month-on-month to reach 3,546 deals, largely led by Jumeirah Village Circle, Dubai Marina, and Business Bay. Meanwhile, off-plan Oqood registrations fell 1.1% month-on-month but still accounted for the majority (72.8%) of all residential sales. Ultra-prime demand remained highly active, with 22 ready-property transactions exceeding AED 30 million, concentrated in locations like Palm Jumeirah, Dubai Hills Estate, and Emirates Hills.
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