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Dubai | ReNews International Desk News

Residential property sales in Dubai South have reached their highest level in six years, with 12,428 transactions recorded during the first eight months of 2026, surpassing the total number of homes sold in any full year over the previous six years.

The latest figures reflect sustained activity in one of Dubai's emerging residential and commercial corridors, even as buyers increasingly favour smaller, relatively affordable housing units over larger, more expensive properties.

According to a report by international property consultancy Anarock, residential transactions during January-August 2026 were 27% higher than the 9,788 transactions registered throughout 2025.

The total value of residential property sales reached AED 15.9 billion during the eight-month period, representing approximately 81% of the AED 19.6 billion recorded in the previous full year.

The report highlights significant long-term growth in Dubai South's real estate market. In 2020, the area recorded just 672 residential transactions worth AED 720 million. By 2025, annual sales had increased to 9,788 transactions with a combined value of AED 19.6 billion, representing approximately 27 fold growth in sales value.

A major shift in buyer preferences has emerged, with studio apartments accounting for 45% of residential transactions between January and August 2026, compared with only 19.5% in 2025.

One-bedroom apartments contributed another 31%, bringing the combined share of smaller residential units to approximately 76% of total transactions.

The growing preference for smaller homes has also significantly affected the average value of individual property transactions.

According to Anarock, the average transaction value declined to AED 1.28 million during the first eight months of 2026, compared with its peak of AED 2.57 million in 2023.

However, the consultancy emphasised that the reduction in average transaction value should not be interpreted as a general decline in property prices.

The average residential price per square foot actually increased from AED 650 in 2020 to AED 1,656 during January-August 2026, indicating that lower overall purchase values largely reflect the growing proportion of smaller apartments being sold.

Aayush Puri, CEO of Residential Middle East and Anarock Channel Partners, said the most important change in the market was the type of properties buyers were purchasing.

He noted that studios and one-bedroom apartments now represent approximately three-quarters of residential transactions, making smaller and lower-ticket properties the primary drivers of sales activity.

The report also found that apartments accounted for 94.5% of total residential sales volume, compared with 31% in 2020.

Off-plan properties continued to dominate the market, representing 94% of residential transactions during the first eight months of 2026, up from 73% in 2020.

Dubai South is a 145-square-kilometre master-planned development centred around Al Maktoum International Airport. The airport's AED 128 billion expansion, approved in April 2024, is expected to play a major role in supporting the area's long-term economic and real estate development.

The report also identified a substantial pipeline of new residential projects, with 38,116 units scheduled for delivery between 2027 and 2029.

Of these, approximately 16,094 units are expected to be completed in 2028 alone, marking the largest annual handover volume within the projected period.

Property analysts have cautioned that such a concentrated supply pipeline will require sustained demand to maintain market balance and avoid pressure on occupancy and rental performance.

The latest trends suggest that Dubai South's residential market is evolving beyond its earlier dependence on larger properties, with smaller apartments increasingly driving transaction volumes and broadening the area's appeal among buyers seeking lower overall purchase costs.