Dubai South Property Sales Surge to Record High in 2026

Dubai South records 12,428 residential transactions in January–August 2026, surpassing full-year 2025 volumes by 27%. Studios and one-bedroom homes account for 76% of sales as demand shifts towards smaller properties.

Dubai South’s residential property market records unprecedented transaction activity in the first eight months of 2026, as buyers increasingly opt for smaller homes. According to property consultancy Anarock, the area registers 12,428 residential transactions between January and August, surpassing the 9,788 transactions recorded throughout 2025 by 27%.

Residential sales value reaches AED 15.9 billion during the eight-month period, equivalent to 81% of the previous year’s full-year total of AED 19.6 billion. The market’s expansion is also evident over the longer term, with annual residential sales value increasing from AED 720 million in 2020 to AED 19.6 billion in 2025.

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The most significant shift is in buyer preferences. Studio apartments account for 45% of residential transactions in January–August 2026, more than double their 19.5% share in 2025. One-bedroom homes contribute another 31%, taking the combined share of the two categories to approximately 76%. Apartments overall represent 94.5% of residential sales volume, compared with 31% in 2020.

Despite the growing preference for smaller properties, average residential prices continue to rise. The average price reaches AED 1,656 per square foot during January–August 2026, compared with AED 650 in 2020. Meanwhile, the average transaction value declines to AED 1.28 million from its peak of AED 2.57 million in 2023. Anarock attributes this reduction primarily to the increasing share of smaller homes rather than a broad-based fall in property prices.

Off-plan properties remain the dominant segment, accounting for 94% of residential transaction volume during the first eight months of 2026, up from 73% in 2020. Dubai South’s infrastructure development, including the planned expansion of Al Maktoum International Airport, continues to shape the area’s long-term growth prospects.

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The future supply pipeline, however, presents a challenge. Anarock identifies 38,116 homes scheduled for delivery between 2027 and 2029, with handovers expected to peak at 16,094 units in 2028. Sustained buyer demand will be important to absorb this supply. The figures indicate that Dubai South’s residential growth increasingly depends on smaller, relatively affordable homes, while developers face the task of balancing new launches with market absorption.