H1 2026 Market Update: Villa and Townhouse Prices Rise 17% in Dubai Despite a Testing First Half

Thursday 16th July, Dubai, UAE - Dubai's real estate market has recorded a resilient first half of the year, with AED 220 billion worth of sales transactions completed (DLD) despite a shift in buyer sentiment following regional geopolitical developments from March onward. Following a genuinely record-breaking start to the year across January and February, the market moved into a more measured "wait and watch" phase, yet pricing strength across key segments has continued to hold firm, according to Allsopp & Allsopp.

Average villa and townhouse sales prices across Dubai rose 17% year-on-year (DLD, H1 2026 average villa/townhouse sales price vs. H1 2025: AED 7,041,929 vs. AED 6,012,592), even as overall transaction volumes normalised from an exceptional prior year. Average price per square foot climbed 6% year-on-year (DLD, H1 2026 vs. H1 2025: AED 1,892 vs. AED 1,782), underlining that underlying demand for quality stock across the city remained firmly intact throughout the period.

Off-plan continued to lead the market's composition, accounting for 71% of total transaction volume and 60% of value (DLD, H1 2026), while the secondary market delivered average sale prices up 4% year-on-year (DLD, H1 2026 secondary avg. sale price vs. H1 2025: AED 3,914,745 vs. AED 3,750,025), both segments reflecting sustained buyer confidence even through a testing few months. That underlying demand held into June, with DLD recording a 42% month-on-month rise in villa and townhouse transaction volume (DLD, June 2026 vs. May 2026 volume: 1,493 vs. 1,051 transactions), a clear sign that buyer activity continued to build as the second quarter came to a close.

Allsopp & Allsopp's own data mirrored this trend, with the company's average sales price rising 10% year-on-year (Allsopp & Allsopp, H1 2026 vs. H1 2025: AED 5,718,445 vs. AED 5,195,517). That momentum carried through into June, with Allsopp & Allsopp recording an almost 22% month-on-month rise in average villa and townhouse sales price (Allsopp & Allsopp, June 2026 vs. May 2026: AED 8,361,985 vs. AED 6,862,872), and total villa and townhouse sales value up over 42% month-on-month (Allsopp & Allsopp, June 2026 vs. May 2026: AED 459,909,169 vs. AED 322,554,999), reinforcing that pricing strength and buyer appetite continued to build as H1 drew to a close.

The agency's top transactions of H1 2026 included a Garden Homes villa on the Palm Jumeirah selling for AED 68 million, a beachfront villa on Palm Jebel Ali for AED 50.3 million, and a Polo Homes villa in Arabian Ranches for AED 50 million, underscoring continued appetite at the very top of the market. Communities such as Jumeirah Golf Estates, The Springs and Damac Hills 2 led villa and townhouse transaction activity, highlighting the enduring appeal of established family communities offering privacy, space and lifestyle-led amenities.

Commenting on the market's performance, Lewis Allsopp, Chairman of Allsopp & Allsopp, said: "The first few months of 2026 were some of the strongest we've ever recorded, and while regional developments understandably brought a more cautious approach from March onwards, what's most telling is that pricing held its ground throughout. Villa and townhouse prices are still up 17% year-on-year, and heading into June we actually saw that momentum build further, both in pricing and in the volume of buyers coming back to the table."

"This resilience speaks to something bigger than any single quarter," he added. "Buyers and investors continue to view Dubai as a market for long-term capital growth, not just short-term sentiment. We fully expect that confidence to carry through into the second half of the year."

As the market moves into the second half of 2026, Allsopp & Allsopp expects continued stabilisation, with villa and townhouse demand remaining the primary driver of price growth, supported by sustained international buyer interest and the ongoing appeal of Dubai's most established communities.

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