Dubai Residential Handovers Hit Record 27,300 Units in Q2 2026
Dubai developers handed over approximately 27,300 residential units during the second quarter of 2026, marking the highest quarterly delivery volume in recent years, while launch activity moderated significantly to approximately 5,335 residential units, according to Savills. The report says the increase in completed homes substantially expanded ready residential stock, improving buyer choice and contributing to greater pricing differentiation across communities.
Residential handovers
Apartments accounted for approximately 17,400 units (64%) of residential handovers during Q2, while 9,900 villas and townhouses (36%) were completed, according to Savills.
The consultancy said villa and townhouse handovers reached an unusually elevated level, marking one of the strongest quarterly delivery volumes for the segment in recent years and contributing to a broader increase in the availability of ready family housing.
Major completions during the quarter included LUCE on Palm Jumeirah, St. Regis The Residences – Financial Centre Road, Castleton at Central Park, Sunridge by Emaar, Raya Townhouses, The Valley – Elora, DAMAC Lagoons – Costa Brava 2, Belmont Residences and Thyme.
Higher supply improves buyer choice
According to Savills, the significant increase in completions is expected to improve buyer choice while contributing to greater pricing differentiation in communities experiencing elevated levels of new supply.
The report says pricing performance has become increasingly fragmented, driven by local supply dynamics and handover activity.
Since February 2026, communities such as Dubai Hills Estate and Arabian Ranches 3, where significant new supply has recently entered or is approaching the market, have recorded price adjustments of around 10% for comparable properties. In contrast, more supply-constrained communities such as Reem Mira have remained relatively resilient, highlighting the growing divergence in pricing performance across Dubai's residential market.
Launch activity moderates sharply
While handovers accelerated, launch activity moderated significantly during Q2 2026.
Savills recorded approximately 5,335 residential units introduced across a limited number of projects, compared with more than 45,000 units launched during Q1.
The report says developers adopted a more selective and phased release strategy amid moderating market conditions.
Projects launched during the quarter included Faro by Emaar, Enchante by Grid in Dubai South, Cheval Residences Dubai Islands and several boutique developments.
Despite the slower pace of launches, Emaar announced a AED 200 billion master-planned development spanning approximately 4.5 million square metres and designed to accommodate around 150,000 residents, underlining developers' continued commitment to large-scale master-planned communities.
Developers extend delivery timelines
Savills said developers are increasingly postponing the launch of new projects and extending delivery timelines for upcoming developments.
Projects that were previously expected to be completed within approximately three years are now generally anticipated to be delivered over a four-year horizon.
According to the report, this staggered delivery profile should help distribute future supply over a longer period, reducing near-term absorption pressure and supporting a more balanced market over the medium term.
Residential transactions moderate
The report also shows that Dubai recorded approximately 35,884 residential transactions during Q2 2026, representing a 19% quarter-on-quarter decline.
Despite the slowdown, the off-plan market accounted for 76% of all residential transactions, up from 73% in Q1, partly reflecting the continued registration of off-plan sales agreed in previous quarters.
Meanwhile, ready market transactions declined by around 30% quarter-on-quarter, although transaction volumes have remained broadly stable at around 2,800 transactions per month since March.
Refinancing activity overtakes sale-related valuations
Savills also identified a notable shift in valuation activity during the quarter.
By the end of Q2, refinancing-related valuations accounted for approximately 70% of valuation activity, compared with around 30% historically, while sale-related instructions declined to 30%.
The report says the increase in refinancing activity suggests many existing owners are choosing to optimise financing arrangements rather than dispose of assets, reflecting continued confidence in the market's longer-term prospects.
Outlook
Looking ahead, Savills expects Dubai's residential market to transition into a period of normalisation, characterised by moderating transaction activity, elevated handover volumes and increasingly selective buyer behaviour.
The report says pricing performance is expected to become more localised, with prime and well-located assets likely to outperform, while apartment-led markets with a higher concentration of new supply may experience greater pricing differentiation and moderation in rental performance.
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