Dubai's real estate market demonstrated strong resilience in the first half of 2026, with luxury property sales, particularly in the ultra-prime segment, showing significant growth despite geopolitical uncertainties. The market experienced a notable increase in transactions exceeding $10 million and a substantial rise in the value of ultra-prime deals. Prime residential areas continued to attract investment, and the office and retail sectors also posted robust performance figures, underscoring the market's maturity and sustained demand.

Dubai's real estate market demonstrated strong resilience in the first half of 2026, with luxury property sales, particularly in the ultra-prime segment, showing significant growth despite geopolitical uncertainties. The market experienced a notable increase in transactions exceeding $10 million and a substantial rise in the value of ultra-prime deals. Prime residential areas continued to attract investment, and the office and retail sectors also posted robust performance figures, underscoring the market's maturity and sustained demand.

Dubai's real estate market demonstrated strong resilience in the first half of 2026, with luxury property sales, particularly in the ultra-prime segment, showing significant growth despite geopolitical uncertainties. The market experienced a notable increase in transactions exceeding $10 million and a substantial rise in the value of ultra-prime deals. Prime residential areas continued to attract investment, and the office and retail sectors also posted robust performance figures, underscoring the market's maturity and sustained demand.

Despite geopolitical challenges, Dubai recorded 320 residential property sales worth more than $10m during the first half of 2026, according to a study. There is also an increase in the number of ultra-prime transactions by 23 per cent year-on-year, reaching a combined value of $6bn.

According to a market analysis from Engel & Völkers Middle East, the residential properties valued above accounted for 9.7 per cent of Dubai’s total residential sales value during the first six months of the year.

Despite the uncertainties triggered by the geopolitical conflict, the Emirate registered brisk activity in the property sector, especially the wider residential market. Dubai recorded 80,509 residential sales with a combined value of AED226.5 billion, the report added.

The year began strongly for Dubai with January and February outperforming the same period in 2025. But the US war with Iran and its repurcurssions slowed down the pace as buyers and investors sat on their decision.  The market activity, however, recovered in June as conditions improved.

Daniel Hadi, CEO of Engel & Völkers Middle East, said: “The first half of 2026 demonstrated the resilience and increasing maturity of Dubai’s real estate market. We saw buyers become more considered during the period of regional uncertainty, but importantly, demand remained present and activity began to strengthen again as conditions improved. What continues to give us confidence is the depth of the market, from growing international demand for exceptional ultra-prime homes to sustained activity across the wider residential sector.”

The prime areas where major transactions happened included Jumeirah, Jumeirah Asora Bay and the Dubai Water Canal, thanks to waterfront locations, privacy, architectural quality and access to world-class amenities.

Office and retail property were particular areas of strength. Office sales increased 35.3% year-on-year to 2,570 transactions, while retail transactions rose 50.2% to 853. The value of office sales reached AED15.8 billion, almost three times the AED5.4 billion recorded during the same period last year, the report added.

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