The emirate’s real estate sector delivered exceptional performance between January and March 2026, with residential sales accounting for Dh143.1 billion across 44,743 transactions—a 22.2% increase compared to the same period last year—while commercial transactions reached Dh37.9 billion from 3,619 deals, according to Engel & Völkers Middle East.
The standout feature of the quarter was the sharp rise in high-end activity, with 2,148 property transactions valued above Dh10 million representing one of the highest quarterly totals on record. Several landmark deals illustrated investor appetite at the ultra-prime level, including a Dh422 million off-plan residence at Aman Residences, a Dh350 million villa at Jumeirah Asora Bay, and a Dh340 million villa on Jumeirah Bay Island.
“Dubai’s real estate market continues to demonstrate exceptional depth, particularly at the luxury end, where demand remains highly resilient,” said Daniel Hadi, chief executive of Engel & Völkers Middle East. “What we saw in March was a natural pause linked to evolving regional conditions, but also a transition towards a more mature phase where buyers and investors are increasingly focused on value, quality and long-term fundamentals.”
Prime demand remained concentrated in established communities such as Palm Jumeirah and Dubai Hills Estate, while master-planned destinations including The Oasis Dubai and Nad Al Sheba gained traction alongside emerging waterfront developments such as Palm Jebel Ali and La Mer.
The commercial property sector mirrored the broader market’s strength, with office assets emerging as a standout performer. A total of 1,565 office transactions were recorded during the quarter, representing a 74.5% increase year-on-year, while average office prices rose to Dh3,047 per square foot as demand strengthened for Grade A workspaces.
Business hubs such as Business Bay, Al Sufouh and Dubai Maritime City accounted for a significant share of off-plan office activity, reflecting continued expansion by multinational companies and professional services firms establishing regional headquarters in the emirate.
Official figures from Dubai Land Department reinforced the strength of the broader trend, showing total real estate transactions reached Dh252 billion in the first quarter of 2026, a 31% increase year-on-year across more than 60,000 deals. Foreign investment alone climbed 26% to Dh148.35 billion, highlighting sustained international confidence despite regional volatility.
Although the market entered the year with strong momentum, activity became more measured toward the end of the quarter following regional tensions in late February, with some buyers extending decision-making timelines. However, analysts describe this as a temporary adjustment in sentiment rather than a structural slowdown in demand.
The emirate’s population growth remains a key structural driver of demand, with Dubai’s resident base surpassing four million last year as professionals, entrepreneurs and investors continue relocating under long-term residency programmes and business-friendly policies.
With rental yields still averaging between 6% and 8% in many communities and total property sales already reaching a record Dh686.8 billion in 2025, the strong start to 2026 suggests Dubai’s real estate sector is entering a more selective and globally institutional phase. The first-quarter performance reflects Dubai’s growing appeal to global high-net-worth individuals seeking secure assets, residency advantages and long-term lifestyle investments.
