Dubai's secondary residential market maintained steady momentum in the second quarter of 2026, with resident end-users continuing to drive demand for completed homes, particularly villas and townhouses in established communities, according to property brokers and developers.

Dubai-based property broker Union Square House sold six luxury villas worth around 300 million UAE dirhams over the past 40 days, with all buyers being Indian nationals, the company’s founder told Zawya Projects.

Dubai registered nearly 2,400 resale transactions worth nearly AED 7.7 billion in May, according to the firm’s analysis.

The buyer base is as global as ever, but much of it is now resident money," Aidasani said. "Indians remain the largest group, accounting for roughly one-fifth of purchases, followed by the British at around 13 percent, with Egyptians, Americans and Pakistanis also featuring prominently."

He said the average secondary market transaction stood at about AED 3.2 million, compared with roughly AED 2 million for off-plan sales, indicating stronger demand for completed homes in established communities.

Aidasani said a significant portion of buyers already live in Dubai or UAE on long-term visas.

“Notably, the local-versus-overseas split barely moved through the year — about three-quarters of demand remained local — which tells you there was no flight of buyers,” he noted.

An analysis of around 12,000 enquiries received by the company over the past five months showed nearly two-thirds coming from end-users rather than investors or agents, he said.

“On ready property, that share is higher still, while the investor demand remains concentrated on off-plan. The maturing of that balance — owner-occupiers becoming the backbone of demand — is what makes current activity feel durable rather than speculative,” Aidasani added.

Established communities in demand

Jason Hayes, Chairman of LuxuryProperty.com, said demand has remained strongest for quality family homes, particularly villas and townhouses, in established communities.

"Our buyers are primarily end-users already living in Dubai or elsewhere in the UAE,” he said. “They are looking for usable space, strong community infrastructure, access to schools, parks, retail, and a home will serve their families over the next five to ten years. Ready stock in good communities remains attractive because it gives buyers certainty.”

Villas and townhouses continue to attract strong interest with some buyers are taking advantage of improved negotiating opportunities after the market's recent peak, according to Hayes.

“Serious buyers are taking advantage of the current market opportunity to explore new possibilities that were previously out of their reach. Others are motivated by lifestyle, stability, schools, space, and a desire to put down deeper roots in the city.”

He added that the apartment segment has become more price-sensitive as supply has increased, particularly in investor-owned developments where more units are competing for tenants and buyers

“Some short-term rental units are returning to the long-term market, resulting in more options for tenants and heightened competition in specific areas,” he said.

No distress sales

Despite improved negotiating power for buyers, brokers said there is little evidence of widespread distress selling.

“Sellers are not panicking or heavily discounting prices, and there is no sign of distress selling happening in the market,” said Hayes.

Riyaz Merchant, Chief Executive Officer of Realty Force, said sellers who are prepared to negotiate continue to conclude transactions.

"We recently sold a four-bedroom apartment at Opera Grand for AED14.5 million compared with a market price of AED16.5 million, while an apartment at IL Primo changed hands for AED28.5 million with a five-year payment plan," Merchant said.

He added that recent transactions have typically closed at discounts of 10-15 percent to initial asking prices or included more attractive payment terms.

Rakesh Mirchandani, Managing Director of RRS International Development, said limited supply rather than distressed pricing continues to underpin the villa market.

“Limited resale stock in mature, low-density villa communities is the core driver, rather than sellers cutting prices to move units. In fact, secondary market average prices jumped 23 per cent quarter-on-quarter in the first quarter, the opposite of a discount-led market,” he said.

Buyer demand remains strongest in established neighbourhoods where infrastructure is complete and supply is constrained, according to Mirchandani.

“Rising rents are pushing long-term tenants to compare annual rent against mortgage payments, leading more end-users toward ownership for cost predictability, especially mid-priced apartments, townhouses, and family villas.”

He said apartment markets in higher-density areas are facing greater competition from new supply.

“Areas near metro lines (e.g., the new Blue Line), employment hubs, schools and new infrastructure - Business Bay, JLT and Al Furjan - see the most consistent demand,” said Mirchandani. “At the same time, we’ve seen build-up of interest among seasoned investors in acquiring properties in prime areas at pre-COVID prices.”

Deal timelines

Several brokers also noted that regional geopolitical tensions have slowed transaction timelines rather than reduced demand.

Hayes said LuxuryProperty.com has more than AED600 million of agreed transactions agreed in April and May that have taken longer than usual to progress because of uncertainty surrounding regional security.

"When peace returns, and it will, I expected a flurry of activity as people finalise already-negotiated deals on DLD Form F. I think this will give an immediate bounce in terms of statistical data: a definitive V-shaped recovery.”

According to Savills Middle East's latest UAE Residential Investor Sentiment Survey, geopolitical developments have prompted buyers to become more selective without materially reducing underlying demand.

“What we are seeing is a shift in behaviour rather than a drop in interest,” said Andrew Cummings, Head of Residential Agency at Savills Middle East.

He said buyers are taking more time to complete purchases while focusing increasingly on location, build quality and long-term value.

"The absence of widespread selling pressure reflects continued confidence among existing owners, many of whom are well positioned following strong performance in recent years. As a result, the market is moving towards a more balanced and sustainable phase, rather than experiencing any structural correction," he said.

Aidasani said transaction periods have lengthened as buyers become more deliberate, but those who proceed are showing stronger commitment.

“On pricing, the secondary villa median sits around AED4.3 million, and secondary tickets are larger across the board. There is a clear trend toward serious, considered buyers who prefer quality and long-term investment over quick turnover, creating solid foundations and increased stability within the overall market.”

On the other hand, owners who cannot achieve their target prices are generally choosing to hold their properties rather than sell at heavily discounted values, he concluded.

(Reporting by Hina Navin; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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