Dubai property sales hit Dh176.7bn in Q1 2026 as off-plan demand drives growth

Dubai’s real estate market sustained strong momentum in the first quarter of 2026, recording Dh176.7 billion in property sales across nearly 48,000 transactions, underlining continued investor appetite and firm price growth.

Market data indicates that transaction values rose 23.4% year-on-year, while volumes increased 5.5%, highlighting a market increasingly driven by higher-value deals rather than rapid expansion in transaction numbers.

A separate market analysis recorded Dh138.7 billion in transactions across 44,150 deals, further reinforcing the trend of price strength supporting overall market growth.

Off-plan properties dominate Q1 activity

Off-plan sales continued to lead market performance, accounting for approximately 70% of total transactions and value during the quarter. A steady stream of new project launches, flexible payment plans, and competitive pricing in emerging communities supported demand.

March alone saw more than 10,300 off-plan transactions worth Dh31.2 billion, demonstrating sustained buyer confidence despite broader regional uncertainty.

The strong performance of the off-plan segment reflects continued investor interest in early-stage projects offering capital appreciation potential.

Prices hold firm across segments

Residential prices remained resilient across both apartments and villas.

• Average residential prices reached Dh1,949 per square foot
• Off-plan apartments averaged Dh2,100 per square foot
• Secondary villas averaged Dh2,354 per square foot

Villa segments in particular recorded sharper median price gains in select communities, reflecting sustained demand for larger homes and family-oriented developments.

The data suggests that value growth continues to outpace transaction volume growth, reinforcing Dubai’s positioning as a maturing, price-driven market cycle.

Investor and end-user demand supports stability

Demand continues to be fuelled by a mix of long-term investors and end-users. Buyer behaviour, however, has become more selective, with greater focus on pricing alignment, developer reputation, build quality, and long-term community fundamentals.

This shift reflects a more mature market environment where capital deployment is increasingly strategic rather than speculative.

Key areas lead transaction volumes

Transaction activity remained concentrated in high-supply and growth corridors, including:

• Dubai South
• Jumeirah Village Circle
• Al Barsha South Fourth
• Al Yelayiss

These districts continue to attract investors due to new project launches, infrastructure expansion, and competitive entry pricing.

At the upper end of the market, luxury transactions remained a notable feature, reinforcing Dubai’s global appeal as a prime real estate destination.

Rental market remains active

Dubai’s rental sector also demonstrated resilience, with more than 139,000 rental transactions recorded during the quarter. Continued population growth and tenant inflows are supporting occupancy rates and strengthening the investment case for residential assets.

Outlook remains steady

Sustained off-plan demand, rising average prices, and stable transaction volumes suggest Dubai’s property market remains supported by strong structural fundamentals.

While global economic conditions remain fluid, Q1 data indicates that investor confidence and capital inflows continue to underpin the emirate’s real estate sector heading into the coming quarters.

Source: Gulf News