• Value of US$ 10 million+ residential sales rose by 14% over H1 2025 to US$ 5.1bn 
  • 49% increase in US$ 10 million+ deals recorded in H1 2026 on H1 2024 and 16% on H1 2025

Dubai: Dubai’s residential market hit a new record for quarterly luxury home sales in Q1 2026, with 165 sales valued at over US$ 10 million, with another 131 homes sold during Q2 2026, including a record 26 homes changing hands for more than US$ 25 million, according to the latest analysis from global property consultancy Knight Frank.

The first half of 2026 set a new record for the US$ home sales market totalling US$ 5.1bn, a 14% increase over H1 2025, proving yet again that Dubai’s luxury homes market remains a primary target for global HNWIs despite uncertain conditions.

Faisal Durrani, Partner – Head of Research, MENA, said: “Dubai’s luxury market has consistently broken records over the last five years. Considering the current regional conflict, this new record is showcasing deals that were mostly closed pre-conflict but have a four to six weeks delay in registration. That is not to say that market activity has stalled because we’re seeing daily transactions come through because the base fundamentals are still unchanged. The world-class infrastructure, global connectivity, ‘can-do’ government mantra, pro-business environment, cosmopolitan lifestyle and excellent education and healthcare facilities are amongst the most competitive globally. The combination of these factors provides the country with a strong foundation of established trust to continue building on.”

Luxury communities in demand

Nicholas Spencer, Partner – Head of Residential, MENA, added: “Noting the ongoing Middle East regional conflict, the quarterly performance of Dubai’s prime market during H1 is reflective of deals that were mostly closed pre-conflict. We may not have a true picture of the impact of the conflict until the Autumn, assuming the conditions remain stable. For now, we have already noted prices ebbing widely across the city’s mainstream market by between 5-20%, depending on location. This range has been influenced by owners and investors exiting the market, including motivated sellers, some of whom are still exiting with profits, depending on when they transacted and noting that prices through this cycle over the last five-and-a-half years have risen by 82.9%, on average.”

There has been greater resilience across prime neighbourhoods, although here too there are signs of prices starting to weaken, catalysed by the uncertain nature of ongoing events. This, in our view is the key variable that will heavily influence how prices behave in the near term. With the onset of the historically quieter summer months, we anticipate a further slowing in city-wide deal volumes.

Dubai Hills Estate has cemented its position as the top performer of this segment for H1 2026, recording 51 homes sold for over US$ 10 million, followed closely by Palm Jumeriah (50). Palm Jebel Ali, which is due for completion in 2028, came third with 40 luxury homes sales in H1 2026.

The most expensive individual purchase in H1 2026 was in Jumeirah Second community, where a 6-bedroom apartment in Aman Residences tower by H&H Investment and Development sold for US$ 114.9 million (AED  422 million).

Knight Frank says Dubai's prime residential market has demonstrated continued resilience through the current period of regional uncertainty, with transaction data for 2026 pointing to the enduring strength of the emirate's structural foundations. While confidence across regional markets will be tested, the fundamentals underpinning Dubai's position as a global destination for capital and talent remain firmly intact.

Durrani concluded, “What makes the current cycle different to previous ones is the nature of buyers and existing homeowners, which has perhaps shielded the market to an extent from the severe level of corrections seen in previous downturns. Home values fell by an average of 35% in the aftermath of the Global Financial Crisis, for instance, fuelled by the high volume of speculative buying activity. In fact, in 2008, 25% of homes were resold within 12-months of transacting. Last year, this figure stood at 4%, highlighting the growing proportion of genuine ‘end-users’ in the market. This has also been reflected in rising school enrolment figures and the higher levels of price stability in the city’s completed neighbourhoods since the outbreak of the Middle East regional conflict, particularly those dominated by villas. Deals in prime neighbourhoods continue however, albeit at perhaps a less frenetic pace than that of pre-conflict levels. Examples this month include the sale of a six-bedroom villa on Jumeirah Bay Island for US$ 76.3 million, while an 80,000 square foot plot on Dubai’s newest island reclamation project, Naia Island, sold for US$ 152.5 million.”