The top five areas by transaction value were Dubai Harbour (Dh2.7 billion), The Palm Jumeirah (Dh2.49 billion), Downtown Dubai (Dh778 million), Jumeirah (Dh393 million) and Dubai Healthcare City (Dh349 million).
In the affordable segment, prices rose 8.5 per cent yearly in August, with average rates at Dh1,815 per sq ft, EFG Hermes said.
Total transaction value stood at about Dh13 billion, with the top five areas including MBR City (Dh3.7 billion), Business Bay (Dh2.3 billion), Dubai Marina (Dh1.07 billion), Arabian Ranches (Dh1.01 billion) and The Lagoons (Dh837 million).
Meanwhile, in the budget segment, prices dropped by 4.5 per cent year-on-year, although they were up 4.4 per cent on a monthly basis averaging Dh990 per sq ft.
Looking at transaction values, the top five areas were Dubai Land (Dh4.9 billion), Dubai South (Dh1.28 billion), Jumeirah Village Circle (Dh915 million), Al Furjan (Dh 713 million) and Jumeirah Golf Estates (Dh544 million).
Dubai's property market has bounced back strongly from the coronavirus-induced slowdown, helped by government initiatives such as residency permits for retired and remote workers.
The emirate's move to expand the 10-year golden visa programme and higher oil prices also supported property market growth momentum.
Dubai’s residential real estate prices rose 17 per cent in the second quarter on an annual basis, marking the 10th consecutive quarter of expansion, amid strong demand and robust economic growth, a report by consultancy Knight Frank last month found.
Overall, total transactions in Dubai's real estate market rose nearly 25 per cent annually to Dh44.67 billion in August, the EFG report said.
While residential and office activity posted strong gains, land transactions recorded the least growth on a yearly basis.
Rental market mixed
On the rental side, the market recorded mixed performance in August, the EFG report found.
Areas such as Motor City, Downtown Dubai (affordable) and Dubai Sports City saw strong annual growth of 37.5 per cent, 29 per cent and 28 per cent, respectively, for two-bedroom apartments.
However, in Downtown Dubai (luxury) rents were down 17.6 per cent year-on-year, and in Emirates Living (The Greens) and International City, they nudged up 11 per cent and about 14 per cent, respectively, for two-bedroom units.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
