You can absolutely build muscle with bands. The key thing is progressive overload - you need to keep making it harder over time. With bands that means using thicker/stiffer ones, doing more reps, slowing down your movements, or combining multiple bands together. Plenty of people get solid results that way, especially if you've already got a foundation from your 6 months with dumbbells.
The main difference is that bands get harder as you stretch them, so the resistance curve is different from weights. That actually works in your favor for some movements because you get more tension at the hardest part of the lift. Where bands might fall short is if you're trying to do heavy compound lifts like squats or deadlifts - it's just awkward to load enough tension. But for pressing, pulling, isolation work? Totally doable.
If space is your concern they're obviously the way to go. Just stay consistent with progression and don't expect your arms to explode faster than they did with dumbbells. Your body adapts to whatever challenge you give it, and bands absolutely qualify as a challenge if you use them right.