Dubai’s off-plan property continued to drive the city’s real estate market sales in early 2026 despite fewer project launches and slower sales, as buyers increasingly focused on pricing, developer track records and financing certainty, according to property experts.
Ali Siddiqui, Research Manager at property consultant Cavendish Maxwell, said off-plan residential sales activity in Dubai accounted for nearly three-quarters of all transactions.
“In the first five months of 2026, around 49,700 off-plan transactions were recorded, representing a 7.1 per cent decline compared with the same period last year” he told Zawya Projects.
He added that new project launches fell 68.5 percent year-on-year over the same period, limiting the amount of fresh inventory entering the market.
An analysis of transactions by property manager betterhomes showed that off-plan transaction volumes in Dubai fell by approximately 45 percent in May, with apartment values in the segment softening by around 26 percent.
The company’s Director of Off-Plan and Capital Markets Harry Martin attributed the fall mainly to May being effectively a three-week trading month [due to Eid holidays] and a slowdown in project launches from their recent peak.
Off-plan properties nevertheless accounted for more than 65 percent of total transaction volume during the month, he told Zawya Projects.
“Demand in the off-plan market is holding up, but it’s become more selective,” said Martin.
He pointed out that several projects across Dubai, Abu Dhabi, and Sharjah had sold out in recent weeks, with pricing the consistent factor behind their performance.
The betterhomes executive underlined that projects at “sensible entry values per square foot”, in locations slightly outside the premium core, have been drawing strong commitment from local and international buyers alike. Demand was strongest where launch prices were competitive and developers had established delivery records, he said.
“The present market does not move on momentum alone,” explained Martin. “Confidence in delivery matters too. Projects that consistently attract buyers typically have a three-year construction timeline, which buyers find acceptable. This duration reflects the credibility of the developers, a quality that the market highly values.”
Investors dominate sales
Rajiv Ghanekar, Sales Director at property brokerage Indus Real Estate, stated that the main segment driving off-plan sales in Dubai is investors, especially overseas buyers.
Citing Dubai Land Department (DLD) transactions from 1 April 2026 to 22 June 2026 totalling 31,361 property sales, he said 23,854 of these transactions were off-plan sales – apartments, townhouses, and villas – which represented a significant 76 percent of the total sales volume.
“Nearly 67 percent of off-plan sales were for studio and one-bedroom units,” he said. “This trend shows that most buyers are investors, especially from overseas. They want to attain long-term rental income and qualify for an investor visa.”
Ghanekar said a recent change by DLD had removed the minimum property-value requirement for a renewable UAE residency visa.
“This change makes it easier for investors to get UAE residency for two years, which can be renewed. To qualify, the property must be ready and have a title deed,” he explained.
Ghanekar said private developers are offering payment structures under which buyers pay 20 percent or 30 percent during construction and the remaining 80 percent or 70 percent later, particularly for properties scheduled for handover within 18 months.
Post-handover payment periods of two to three years were also becoming more common, he said.
At Dubai South’s Hayat Townhouses, two clusters sold out under an offer that included a 2 percent DLD fee waiver, a two-year payment plan, a two-year service-charge waiver, free landscaping and complimentary processing of a golden visa, Ghanekar said.
He pointed out that some private developers are providing discounts of up to 30 percent for larger upfront payments, while temporary waivers of the 4 percent DLD fee are also widely used. A Dubai developer was also offering guaranteed return on investment (ROI) on instalment payments until the property handover.
“Such offerings are also attractive to buyers of ready properties, as their money starts earning from the day of booking without the hassle of managing tenants,” said Ghanekar.
Developers were also releasing inventory held back from previous launches, he added.
AED200 million penthouse sale
Demand has also continued at the top end of the off-plan market.
Brokerage Union Square House completed the AED200 million ($54.5 million) sale of a penthouse at Bugatti Residences by Binghatti in Business Bay this month, founder Gaurav Aidasani said.
The 20,449-square-foot property sold for AED9,780 per square foot, he added.
Aidasani said ultra-high-net-worth buyers remained willing to invest in high-value off-plan developments despite premium pricing.
Integrated mortgage offering
The off-plan residential market has traditionally relied on developer payment plans, with buyers paying developers directly in installments during construction and approaching banks for mortgages only closer to project completion.
However, a new model, based on partnerships between developers and banks, allows mortgage financing to be integrated right from the booking stage of the purchasing journey, according to Dhiren Gupta, managing director of 4C Mortgages Consultancy.
For example, Emirates NBD, UAE’s largest bank by assets, has partnered with Dubai-based developers including Emaar, Dubai Holding, Majid Al Futtaim, Al Wasl Group, Aldar (for Dubai projects), Sobha, Damac, Ellington, Omniyat, and Binghatti for off plan mortgage schemes. Other lenders including Mashreq Bank, Dubai Islamic Bank, Emirates Investment Bank, Abu Dhabi Islamic Bank, and First Abu Dhabi Bank have introduced off-plan mortgage frameworks to support Tier-1 projects.
Gupta highlighted that buyers must still use their own funds to pay the developer until they reach a 50 percent equity threshold, while projects typically must be 30 percent to 40 percent complete before banks begin releasing mortgage funds.
“The difference now is that when you walk into a developer’s sales gallery, you can apply for a mortgage pre-approval from a bank right at the booking stage before signing the Sale and Purchase Agreement,” he said. “Your financing eligibility, maximum loan amount, and baseline rates are locked in and confirmed from day one, providing a high level of certainty.”
Once these parameters are met, the bank takes over the remaining payment plan.
Gupta continued: “If you need to pay the next 10 percent milestone out of pocket, the bank will release those funds in tranches directly from the mortgage account to the developer’s escrow account. After the building is handed over, the loan transitions into a standard long-term mortgage of up to 25 years.”
He said the new model is expected to reduce handover defaults significantly.
“In a typical market, if thousands of buyers discover at the time of handover that they cannot secure a mortgage, it can lead to a wave of defaults that might trigger a market crash.”
He added that extending mortgage availability to off-plan properties from the outset broadens access for salaried residents and end-users who require long-term financing.
“It indicates that Dubai’s real estate sector is evolving from a speculative, cash-driven environment into a highly structured, institutionalised, and transparent global market,” Gupta noted,
Abu Dhabi demand grows
While Dubai continues to lead off-plan sales, property consultants also reported growing investor interest in Abu Dhabi.
“Investors are diversifying beyond traditional hotspots and focusing on markets with strong government support and long-term development strategies,” observed Emrah Yar, Founder and CEO of real estate firm Equity. “These markets represent about 70 percent of our off-plan transactions, showing a notable shift in interest toward the capital.”
Yar noted that, rather than retreating, investors are adapting by committing to future developments and exploring opportunities beyond Dubai.
“Following the [middle east] conflict, our off-plan department has recorded over 80 off-plan primary sales [in Abu Dhabi] with a value in excess of AED 400 million, with deal prices ranging from AED 1 million to AED 38 million. Developers such as Modon, Wasl, Aldar and Beyond make up the majority of these sales.”
According to Yar, payment plans have become more flexible, with reduced initial down payments as low as 5 percent. Developers are offering attractive promotions such as discounts and fee waivers to attract buyers, making purchases more appealing overall.
He said sales had slowed slightly compared with the period before the conflict but were increasing each month, and forecasted a strong second half of the year for the Abu Dhabi market.
Andrew Covill, director of Abu Dhabi-focussed real estate agency Henry Wiltshire International, said developers had reduced down-payment requirements to between 3 percent and 5 percent from the usual 10 percent and deferred second payments until 2027.
Henry Wiltshire recently sold out townhouses and villas at Hudayriyat Golf Estates, apartments at Yas Park Place, and townhouses and villas at The Orchids in Yas Acres, Covill said. He also reported rapid sales of studios and one-bedroom apartments in the Marina building at Lu’Luat, Al Raha Beach.
“There is a strong interest in Abu Dhabi’s real estate, with many relocating and new companies establishing themselves, especially in ADGM,” said Covill.