Dubai Real Estate Market Overview - Q1 2026

The Dubai real estate market started Q1 2026 with remarkable momentum, reaching a total of 47,996 property sale transactions. This represents a 5.5% increase in volume compared to Q1 2025. More notably, the total sales value surged to AED 176.7 billion, reflecting a substantial 23.4% year-on-year growth. This value-driven growth was spearheaded by the apartment segment, which saw 36,466 transactions totaling AED 75.3 billion , and a highly active villas segment contributing AED 59.9 billion from 8,456 transactions.

Price dynamics across the emirate revealed a maturing market with selective growth sectors. Resale villas emerged as the strongest performers, soaring to an average of AED 4.369 million, a 12% jump from the previous year. In the off-plan sector, first sale villas experienced an even more significant spike, rising 35.4% year-on-year to reach AED 4.097 million. While apartments maintained a steady upward trajectory in both first-sale and resale markets, first sale plots faced a market correction, with prices dropping 25.7% to AED 2.859 million.

Activity was concentrated in several high-performing residential and investment hubs:

• Al Barsha South Fourth led in transaction volume with 3,162 deals.
• Al Yelayiss 1 recorded the highest sales value among top areas, reaching AED 12,935 million.
• Dubai South continued to show strength with 2,889 transactions.
• Wadi Al Safa 5 and Wadi Al Safa 3 rounded out the top five, collectively contributing over AED 9.9 billion in value.
  

The market remains heavily driven by new developments, with first sales accounting for 70% of total volume (33,810 transactions) and 71% of total value (AED 125.3 billion). Mid-market properties remain the engine of the industry; the AED 1 to 2 million price range was the most active, accounting for 32.31% of all transactions. Simultaneously, the ultra-luxury tier continues to break records, exemplified by the Aman Residences Tower 2 in Jumeirah Second, where a single apartment sold for AED 422 million , and a villa in Jumeirah First reaching a transaction value of AED 350 million.

Beyond sales, the rental market demonstrated robust health with 229,165 total contracts and a combined value of AED 19.6 billion. Residential rentals comprised the bulk of this activity, led by 134,974 apartment rental transactions. This comprehensive activity across both sales and secondary markets highlights Dubai’s sustained appeal as a global hub for residents, investors, and businesses alike.

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Source: DXBInteract.com