Dubai’s property market showed a clear split in June 2026, with commercial real estate moving sharply higher while residential transactions lost momentum. Offices, retail units and other business properties were the only major segment to record year-on-year growth in both transaction numbers and total value, pointing to a shift in where investors are finding opportunities.
The contrast was particularly visible against the wider sales market. Transactions involving apartments, villas and commercial property fell 16% year on year to 13,699 deals, while their combined value declined 40% to AED 28 billion. Villas accounted for much of the weakness, whereas commercial assets moved in the opposite direction.
According to the June 2026 market analysis published by DXBinteract, Dubai recorded 477 commercial property transactions during the month, an increase of 21% compared with June 2025. Their combined value reached AED 2.33 billion, representing a substantial 126% annual increase.
Commercial real estate moves against the market
The performance of business property stands out because other major categories were under pressure. Apartment transactions declined 10% year on year to 11,700, with their total value dropping 33% to AED 17.87 billion. Villa sales recorded a considerably sharper correction: only 1,522 transactions were completed, 50% fewer than a year earlier, while their value fell 60% to AED 7.8 billion.
Commercial property followed a different trajectory. The 477 transactions represented the strongest June by deal volume since 2014. The increase in transaction value was even more pronounced, suggesting that activity was not simply being driven by a larger number of small acquisitions.
Pricing data reinforces that picture. The median commercial price reached AED 3,001 per square foot, 72% above the level recorded a year earlier. DXBinteract’s historical comparison also places this figure 198% above the 2014 benchmark and identifies it as the highest commercial price per square foot recorded for June during the 13-year series. The median transaction value climbed 64% to approximately AED 2.8 million.
These figures indicate that commercial real estate is developing differently from the residential market. Residential activity has become more restrained, particularly in villas, but demand for business premises has remained comparatively resilient.
Dubai’s property market becomes more selective
The June figures should not necessarily be interpreted as evidence of a broad decline in Dubai property prices. Median prices per square foot for both apartments and villas decreased by only 2% year on year. The much larger fall in total sales value therefore reflects fewer transactions and changes in the type and size of properties being sold rather than a widespread collapse in valuations.
The difference between primary and secondary sales provides another indication of how the market is evolving. New-build properties accounted for around three quarters of transaction volume, demonstrating that developer projects continue to dominate activity. Resales represented only a quarter of transactions but generated roughly one third of sales value, showing that completed properties traded on the secondary market tended to involve higher-value assets.
Location also remains important. Dubai South ranked first by both transaction volume and value in the report’s apartment, villa and commercial analysis, generating AED 3.12 billion in sales and 2,917 transactions. Business Bay followed in terms of value with AED 2.22 billion, while Jabal Ali First recorded 1,154 transactions.
The figures suggest that investors are becoming more selective rather than abandoning Dubai real estate. Instead of uniform growth across every category, capital is moving toward segments and districts where buyers see stronger potential.
Leasing activity adds support to commercial demand
Dubai’s rental market provides another useful measure of underlying demand. New commercial lease contracts increased 27.55% year on year in June, reaching 1,949 agreements. Commercial lease renewals also rose 26.29% to 2,469 contracts. The median rent for new agreements stood at AED 120,000, while the same median level was recorded for renewals.
Residential leasing was also active. New apartment contracts increased 46.29% to 14,121, while new villa leases rose 35.15% to 2,261. This combination of weaker residential sales and stronger leasing activity may indicate that part of the market is shifting toward renting while prospective buyers assess prices, financing conditions and the growing supply of completed homes.
Supply dynamics are changing as well. Developers handed over 4,093 units across 13 projects during June, compared with 2,696 newly launched units across seven projects. Completions therefore exceeded launches by 1,397 units during the month.
For the commercial sector, however, June’s numbers point to a different story. Rising transaction volumes, a more than twofold increase in deal value and stronger leasing activity all indicate sustained interest in property connected to Dubai’s business economy.
The divergence between commercial and residential performance may become an important theme for the market during the second half of 2026. Dubai real estate is no longer moving uniformly across all categories: villas have cooled considerably, apartments remain the largest segment by transaction volume, and commercial property has emerged as the strongest year-on-year performer.
For investors, this creates a market where individual sectors, locations and property types may matter more than headline figures. June’s results show that even as overall transaction activity slows, demand can continue to expand in specific parts of Dubai’s real estate sector.