Dubai's property market has demonstrated exceptional resilience, achieving over AED 252 billion in transactions during the first quarter of 2026, a 31% year-on-year increase in value. The Emirate’s real estate sector saw approximately 86,000 sales transactions in the first half of the year, with the luxury market continuing its strong performance and recording 296 deals over $10 million. Looking ahead, the market anticipates the addition of nearly 59,000 new residential units in Dubai and Abu Dhabi. Government figures highlight that commercial property is currently outperforming residential due to high occupier demand and restricted supply, with Dubai office rents increasing by 13% year-on-year. However, the residential sector is experiencing a moderation in rents, offering some relief to expatriates, alongside a slight decrease in average residential rents compared to the previous quarter and year.

Dubai's property market has demonstrated exceptional resilience, achieving over AED 252 billion in transactions during the first quarter of 2026, a 31% year-on-year increase in value. The Emirate’s real estate sector saw approximately 86,000 sales transactions in the first half of the year, with the luxury market continuing its strong performance and recording 296 deals over $10 million. Looking ahead, the market anticipates the addition of nearly 59,000 new residential units in Dubai and Abu Dhabi. Government figures highlight that commercial property is currently outperforming residential due to high occupier demand and restricted supply, with Dubai office rents increasing by 13% year-on-year. However, the residential sector is experiencing a moderation in rents, offering some relief to expatriates, alongside a slight decrease in average residential rents compared to the previous quarter and year.

Dubai's property market has demonstrated exceptional resilience, achieving over AED 252 billion in transactions during the first quarter of 2026, a 31% year-on-year increase in value. The Emirate’s real estate sector saw approximately 86,000 sales transactions in the first half of the year, with the luxury market continuing its strong performance and recording 296 deals over $10 million. Looking ahead, the market anticipates the addition of nearly 59,000 new residential units in Dubai and Abu Dhabi. Government figures highlight that commercial property is currently outperforming residential due to high occupier demand and restricted supply, with Dubai office rents increasing by 13% year-on-year. However, the residential sector is experiencing a moderation in rents, offering some relief to expatriates, alongside a slight decrease in average residential rents compared to the previous quarter and year.

Amid geopolitical challenges, Dubai’s real estate sector continues to remain resilient, with figures hinting that Dubai’s property market recorded over AED 252 billion in the first quarter of 2026. According to the Dubai Land Department, there is a 31 per cent year-on-year increase in transaction value.

The Emirate witnessed approximately 86,000 property sales transactions during the first six months of the year, pushing the total real estate transactions, including sales, mortgages and property gifts, to approximately AED421 bn.

As per reports, the city continues to retain its position and status as one of the world’s leading luxury residential markets, thanks to the 296 residential property transactions valued at more than $10m during the first half of 2026. All these reflected high levels of market liquidity and continued confidence in Dubai’s property sector, according to a report quoting a new analysis by W Capital Real Estate Brokerage.

The situation is likely to remain positive, and as per the report, approximately 59,000 new residential units are expected to enter the Dubai and Abu Dhabi markets during the remainder of 2026, the report added.

According to real estate experts, areas that drive market demand due to their strong connectivity and lifestyle infrastructure include Dubai Islands, Al Reem Island, Dubai Internet City, Mohammed Bin Rashid City, Jubail Island, Dubai Hills Estate, Dubai South, Jumeriah Village Circle, Saadiyat Island and Palm Jumeirah.

Not just sale and transactions, the rental returns in selected UAE  communities reached as high as 9 per cent, according to the report. Government figures too state that commercial property continues to outperform residential ones due to strong occupier demand and limited supply.

According to CBRE Middle East, the global leader in commercial real estate services, Dubai office rents increased 13 per cent year-on-year while Abu Dhabi office occupancy reached approximately 96 per cent. But the residential and hospitality sectors have softened.

In Dubai, the residential market showed signs of moderation, a relief for many expatriates. Average residential rents fell 6.2% from the previous quarter and were 2.6% lower than a year earlier, while home prices remained 1.9% above 2025 levels, according to a CBRE report.

The pressure was eased, thanks to the nearly 18,000 new homes completed in the first half of the year.

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