Arabian Post Staff -Dubai
The July-September figure represented a decline from 131 transactions in the preceding quarter and 103 during the corresponding period last year. Despite the slowdown, cumulative sales for the first nine months reached 412 transactions valued at approximately $6.67 billion, compared with 357 deals during the same period in 2025.
The figures, released by Knight Frank, indicate that Dubai’s luxury residential market continues to attract wealthy buyers despite regional geopolitical tensions, although transaction volumes and prices in prime neighbourhoods have weakened.
Faisal Durrani, partner and head of research for the Middle East and North Africa at Knight Frank, identified the continuing regional conflict as a major constraint on market activity. He said geopolitical uncertainty was affecting confidence even as substantial transactions continued across the emirate.
The consultancy reported that prices across Dubai’s 10 prime residential neighbourhoods declined five per cent between the second and third quarters, marking their first quarterly contraction since 2020. Transaction volumes across those neighbourhoods were also 29.4 per cent below their year-earlier level.
Palm Jumeirah remained the leading location for luxury transactions, recording 27 sales worth Dh2.01 billion, equivalent to approximately $547 million. The waterfront development accounted for 31 per cent of transactions above $10 million and approximately 35 per cent of their combined value during the quarter.
Louis Harding, partner and head of UAE residential at Knight Frank, said prices on Palm Jumeirah had declined 9.1 per cent over the preceding 12 months, bringing average values to Dh4,083 per square foot.
Harding said purchasing interest on the island continued to come predominantly from buyers seeking permanent residences or holiday homes rather than investors pursuing short-term resale opportunities. He also noted that transaction activity typically moderates during Dubai’s quieter summer months.
The geographical distribution of transactions showed continued demand across established luxury communities. Jumeirah Second ranked second with 10 sales worth Dh594.9 million, followed by Emirates Hills, where seven transactions generated Dh542.5 million.
Dubai Hills Estate recorded six transactions worth Dh574.9 million, while Jumeirah Golf Estates registered another six sales with a combined value of Dh330.1 million. The figures underline differences in transaction values between neighbourhoods, even where the number of properties sold was identical.
Villas dominated the luxury segment, accounting for 55 of the 86 transactions, representing approximately 64 per cent of sales. The remaining transactions involved other residential property types.
The highest-priced segment continued to account for a substantial proportion of transaction value. Thirteen homes sold for more than $25 million each, generating Dh1.84 billion, or approximately $500 million.
These transactions represented about 15 per cent of sales by number but nearly 32 per cent of their total value. The other 73 transactions, priced between $10 million and $25 million, generated Dh3.93 billion, equivalent to approximately $1.07 billion.
Palm Jumeirah accounted for five transactions exceeding $25 million, while Dubai Hills Estate and Emirates Hills recorded two each. The largest individual transaction during the quarter was a Palm Jumeirah property sold for Dh260 million.
Monthly figures revealed a progressive decline in transaction numbers. July recorded 36 sales worth Dh2.04 billion, followed by 32 transactions worth Dh2.08 billion in August. September registered 18 sales totalling Dh1.65 billion.
However, the value of transactions exceeding $25 million increased each month, from Dh376.1 million in July to Dh609.8 million in August and Dh849.5 million in September. Such properties accounted for approximately 52 per cent of September’s luxury sales value.
The broader residential market also showed moderation. Savills recorded approximately 34,500 Dubai residential transactions during the third quarter, down four per cent from the preceding quarter, with their combined value reaching Dh70.8 billion.
Also published on Medium.
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