Dubai’s branded-residences market cools in volume, but pricing power remains strong

Dubai’s branded-residences market is expanding even as buyers become more selective. The sector added 5,184 units in the first half of 2026, lifting total inventory by 8.7% in six months to 64,744 units across 183 developments, according to Morgan’s International Realty.

The surge in supply did not bring another year of record transaction activity. Dubai recorded 4,648 branded-residence transactions worth Dh22.21 billion between January and June. Compared with the same period in 2025, volumes fell 21% and total sales value declined 47%.

The report linked the sharper fall in value to a change in the mix of deals. Smaller units, lower price points and a larger share of non-prime inventory made up more of the market. Compared with the second half of 2025, however, activity and average prices remained broadly stable.

Off-plan properties continued to dominate, accounting for 82% of transaction volume and 78% of sales value. Under-construction residences generated 3,790 transactions, supported by international investors and payment plans tied to construction that allow buyers to spread payments over several years. Of the total inventory, 42,826 units, or about 66%, remained under construction.

Activity was concentrated in a small number of communities. The five leading communities accounted for roughly 59% of transactions, while Mercedes-Benz Places, Binghatti City alone recorded 1,216 deals. That represented about 26% of all branded-residence sales and 32% of under-construction transactions, materially influencing the city’s headline figures.

Branded residences sold for an average of $997 per square foot, compared with $641 for similar non-branded properties. That 56% premium exceeds the global range of roughly 30% to 35%. Elias Hannoush, founder and managing director of Morgan’s International Realty, said the market had moved beyond its emerging-asset-class phase. “It has achieved significant scale, but scale changes the basis of competition. As more projects enter the market, a brand name alone will not be enough. Pricing discipline, development quality, delivery, service and long-term operations will increasingly determine which projects preserve their posi”

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It has achieved significant scale, but scale changes the basis of competition. As more projects enter the market, a brand name alone will not be enough. Pricing discipline, development quality, delivery, service and long-term operations will increasingly determine which projects preserve their posi