Market update · October 2026

DAMAC Hills, Hills 2 & Lagoons market update: October 2026

Dubai has turned into a buyer's and tenant's market. Sales have slowed, asking rents are falling in most big communities, and buyers have room to negotiate again. Here's what the latest figures say, and what they mean if you rent, buy or own in the DAMAC communities.

−38%

Dubai sales transactions, Q3 2026 vs Q3 2025

−5% to −15%

Dubai prices since the end of 2025

+55%

more apartments listed than a year ago

~15%

lower new-lease rents than in January

Our communities at a glance

Community	Avg villa price	Per sq ft	12 months	Avg villa rent (H1)
DAMAC Hills 2	AED 1.86M	AED 1,090	−3.2%	AED 120k
DAMAC Lagoons	AED 3.50M	AED 1,519	Flat	Not reported
DAMAC Hills	AED 5.73M	AED 1,937	+4.8%	AED 263k

Average listed prices (Property Finder data), September to October 2026, and Bayut average asking rents for H1 2026. Averages, not entry prices: size, plot and condition matter. For a figure on your own home, use our free home value tool.

The big picture

Dubai recorded about 34,000 home sales in Q3 2026, 38% fewer than a year earlier, as regional uncertainty made buyers more cautious. S&P Global puts the fall in prices at 5% to 15% since the end of 2025, and expects a gradual correction rather than a sharp drop. Ready homes made up 30.2% of sales in September, their highest share since February, as more buyers choose homes they can see and move into.

Villas are holding up better

S&P expects apartment prices to fall faster than villa prices because of the large number of new apartments due for completion. In our communities the picture is steady: average listed villa prices are up 4.8% over 12 months in DAMAC Hills, flat in DAMAC Lagoons and down 3.2% in DAMAC Hills 2, the most affordable of the three.

Tenants: compare before you renew

Renewal rents rose by 4% to 14% this year, while new leases for the same building and unit type are around 15% below January levels. Asking rents fell in 9 of the 10 biggest apartment communities and 8 of the 10 biggest villa communities. If your renewal is coming up, check the RERA rental index, compare live listings like yours, and weigh the saving against the cost of moving.

Landlords: price to signed leases, not asking rents

There are far more homes on the market and fewer enquiries per listing, so tenants are choosing carefully. Homes priced against recent signed leases, with good photos and fast replies, are still letting quickly. Homes priced against neighbours' asking rents are sitting.

Buyers: room to negotiate

Sellers are pricing more realistically and buyers are taking their time. For anyone buying a home to live in long term, this is the most negotiating room Dubai has offered in years. Short-term off-plan flips carry more risk while the market settles.

What this means for you

Every home is different. Tell us what you're planning and we'll send you the real numbers for your cluster: recent signed leases, sold prices and what's live today.

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Sources

Published 2026-10-26 by Gia & Co Real Estates, RERA ORN 37938. General market information, not financial advice.