Dubai: (RightNow) Dubai’s residential property prices have declined annually for the first time in five and a half years. This indicates that the city’s property market is entering a cautious phase after a long period of growth.

According to property consultancy Cavendish Maxwell, the average price of residential properties in August 2026 was 1,636 dirhams per square foot. This is a 1.7% decrease compared to August last year, with a 1.3% decline observed in the recent three months.

The report states that this is the first decline in home prices in Dubai since February 2021. During the COVID-19 pandemic, price drops were also observed.

Despite the price decline, the volume of property transactions remained significant. The total value of residential property transactions in August was 23.4 billion dirhams, reaching approximately 270 billion dirhams in the first eight months of 2026.

It is noteworthy that off-plan property sales remain popular in Dubai’s property market. In August, 75% of sales were off-plan properties, indicating stable market demand.