Studio sales in Dubai South surged 185% during the first eight months of 2026, signalling growing buyer demand for smaller units as developers largely resisted cutting off-plan property prices.

According to a new market analysis by fäm Properties, studio sales in Dubai South reached 11,147 units, making a significant contribution to the 26% increase in studio sales across Dubai.

Overall, developers sold 21,728 studio units in Dubai during the first eight months of 2026. The increase came as sales of larger units declined, with transactions for one-bedroom apartments down 18%, two-bedroom apartments down 16% and three-bedroom apartments down 13%.

Total apartment sales recorded by developers reached 62,147 units, down 6% from the same period in 2025. Despite the decline in sales volume, most developers refrained from reducing off-plan prices.

An analysis of 717 off-plan projects launched since July 2023 found that only 44 projects, or 6%, had reduced prices by at least 5% since the end of February. Just 28 projects, or 4%, are currently selling below their initial launch prices.

The first price reductions identified in the analysis occurred from June 2026 onwards. fäm Properties said pricing for each project is increasingly being influenced by conditions and prices in surrounding areas.

Firas Al Msaddi, founder and chief executive of fäm Properties, said the data showed that the market adjustment was more evident in sales volumes and absorption rates than in widespread reductions to launch prices.

He added that more than 90% of the projects analysed were still maintaining their original launch prices.

The research also found that a project’s price gap relative to comparable properties in the same area is playing an increasingly important role in sales performance.

Among 574 projects launched since 2025, the median project price was 4.2% above the median price for the surrounding area, with an average of 73.8% of units sold.

By contrast, projects priced at least 20% above the area median sold an average of just 60% of their units.

Al Msaddi said pricing was becoming one of the main factors determining how quickly projects sell. As developers remain reluctant to lower advertised prices, each project’s price positioning relative to comparable properties is having a greater impact on sales performance.

The figures also point to a significant shift in demand across apartment categories.

Studio sales in Dubai rose 26% to 21,728 units during the first eight months of 2026, while sales declined across all larger apartment categories.

Dubai South recorded the strongest growth, with studio sales surging 185% to 11,147 units.

Al Msaddi said projects priced closer to prevailing local market levels were selling faster than those offered at a significant premium to comparable properties.

He added that the relationship between pricing and absorption rates had become increasingly important as competition intensified among projects and across different areas of Dubai.