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Dubai South studio sales surge 185% as developers hold prices

Studio apartment sales in Dubai South surged 185 per cent to 11,147 during the first eight months of 2026, highlighting strong demand for smaller units even as Dubai’s broader apartment sales softened.

The increase made Dubai South a major contributor to the rise in studio transactions across the emirate, according to a market analysis by fäm Properties. Overall developer apartment sales fell 6 per cent year-on-year to 62,147 during the period, while studio sales across Dubai increased 26 per cent to 21,728.

Demand was weaker across larger apartment categories, with one-bedroom sales declining 18 per cent, two-bedroom sales falling 16 per cent and three-bedroom sales dropping 13 per cent.

At the same time, Dubai developers have largely maintained off-plan prices despite changes in sales volumes and absorption rates. Of 717 off-plan projects launched since July 2023, only 44, or 6 per cent, had reduced prices by 5 per cent or more since the end of February.

Only 28 projects, representing 4 per cent of those analysed, were selling below their original launch prices. The first price reductions identified in the analysis emerged in June 2026, with pricing adjustments varying according to local market conditions.

Among 574 projects launched since 2025, projects priced 4.2 per cent above the median price for their respective areas recorded median sales absorption of 73.8 per cent. Projects priced at least 20 per cent above their area median recorded median absorption of 60 per cent.

Firas Al Msaddi, Founder and CEO of fäm Properties, said pricing is increasingly influencing how quickly projects sell, as developers remain reluctant to reduce headline prices.

The analysis indicates that market adjustments are appearing more clearly in sales volumes and absorption rates than in widespread reductions to launch prices, with more than nine out of 10 projects retaining their original launch pricing.

The data also points to a growing relationship between project pricing and sales performance as developers compete across a wider range of locations and developments. Projects positioned closer to prevailing market levels are recording higher median absorption than those carrying larger premiums.

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