Dubai Residential Transactions Reach AED 139.2 Billion In Q1 2026

May 08, 2026
News
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The Dubai residential sector reported AED 139.2 billion (USD 37.9 Billion) worth of sales in Q1 2026. Dubai properties experienced a total of 44,493 sale transactions in the first quarter of 2026, a 4% increase from year-end to year-end. Transaction values also increased by 21% from Q1 2025 to Q1 2026.

Despite the annual growth however, there was a 17% decline in the volume of transactions from the end of Q4 2025; and a 3% decrease in transaction value from Q4 2025 to Q1 2026. While many experts say the decline can be attributed to factors other than demand such as Ramadan, Eid holidays, school breaks, and uncertainty over the geopolitical landscape of the Middle East, the report suggested that the Dubai residential real estate market is becoming more disciplined and that buyers are now more conscious about quality, price and long-term value.

DubaiResidentialTransactionsReachAED139.2BillionInQ12026

Off-Plan Properties Continue to Drive Market Activity

During Q1 2026, off-plan properties made up 68% of all residential transactions.

Off-plan sales experienced:

20% annual growth in sales volume
35% annual growth in sales value

Demand for off-plan properties has continued to benefit from flexible payment plans, the introduction of new communities, and the potential for long-term appreciation. Some of the communities in which off plan projects in Dubai were the strongest performers during this quarter included Dubai Creek Harbour, Dubai South, Business Bay and Jumeirah Village Circle. Furthermore, demand has also increased for investors who wanted to buy off plan villas in Dubai that are part of integrated communities which include schools, retail centres and green space.

The Secondary Market Is Seeing a More Cautious Buyer Attitude

More selective and price-sensitive buyers have driven the secondary market to become more cautiously oriented.

The volume of secondary transactions was reduced by:

19% year-on-year

Buyers continue to focus heavily on:

Condition of the property
Quality of the community
Rental demand
Reputation of developers

Areas with established communities, such as Downtown Dubai, and Dubai Marina, continue to attract buyers due to the stability of their occupancy rates and level of developed infrastructure. Many overseas buyers continued to consider purchasing luxury properties for sale located in waterfront properties, and branded residential developments.

Villas and Townhouses Show Better Growth than Apartments

The demand for larger homes (villas and townhouses) was one of the most significant trends throughout Q1 2026.

The number of inquiries made by buyers regarding villas and townhouses increased by:

15% year-on-year

Conversely,

Inquiries from buyers regarding apartments decreased by 31% year-on-year

Some of the communities that benefited from the increase in family demand for large homes with premium amenities are Tilal Al Ghaf and Palm Jumeirah. The increased demand for luxury villas for sale among high net worth buyers will also help strengthen long-term demand in established master-planned communities.

New Milestones for Investor Participation

Investors Represented:

57% of all Market Transactions
Up from 50% during Q1 2025

At the same time:

Mortgage-backed purchases comprised 50% of total transactions
Down from 58% last year

This may indicate that a larger proportion of buyers are utilizing cash or partial finance strategies to maintain liquidity levels.
Rental yields, residency incentives, tax benefits and transparently enforced regulations continue to bolster property investment in Dubai from overseas buyers. This environment has also bolstered the viability of long term real estate investment Dubai strategies based on rental income and capital appreciation, rather than short-term speculative strategies.

Dubai’s Luxury Property Segment Is Still Growing Strong

Dubai's prime residential segment is still one of the strongest sectors within the overall Dubai Real Estate market. Transactions with a value greater than AED 15 million grew:

by 43% year on year
1,214 deals being made.

At the same time:

Off-Plan $15M+ transactions increased 84% quarter-over-quarter
Secondary transactions over $15M increased by 41% quarter-over-quarter

Emirates Hills, and Business Bay have continued to attract high-net-worth individuals from around the world. Luxury branded residences and waterfront developments continue to be very popular with investors searching for some of the Best Real Estate in Dubai for long-term Wealth Preservation.

Rental Market Performance is Mixed

In the first quarter of 2026, Dubai experienced mixed rental market conditions.

There was a 7% increase in leasing inquiries year over year
There were 5% fewer leasing transactions year over year
Leasing activity for the quarter dropped 26% year over year.

Rental prices for new apartments being rented in prime neighborhoods dropped between 10-20% year over year due to increased supply in various areas. Demand for Studio apartment rent in Dubai was steady across Jumeirah Village Circle (JVC), and Dubai Silicon Oasis where affordability continues to attract professionals. Properties that rent quickly were well maintained compared to properties that are overpriced and face extended terms of vacancy.

Supply Pipeline Continues Growing Across Dubai

Dubai has delivered:

12,463 residential units during Q1 2026.

In addition:

78,678 residential units that are scheduled for delivery during the remainder of 2026.

There continues to be a focus on apartment deliveries while the inventory of villa and townhome inventory still remains low. As supply growth continues to accelerate, buyers are becoming increasingly selective about buying from a reputable real estate company in Dubai that has a history of delivering quality residential products.

Long-term confidence in the Dubai real estate will be driven by increased growth in infrastructure projects and population growth throughout Dubai, as well as increased Dubai market activity.

Information From Q1 2026 Indicator Of Future Marketplace

In Q1 2026, the real estate sector in Dubai is continuing its evolution into a more mature and cautious market rather than an ever decreasing pace. Strong levels of off-plan transaction volume, escalating levels of investment from international buyers and the ongoing appetite for luxury goods all confirm that Dubai real estate market continues to be one of the premier countries for real estate investment around the globe.

Much of this new supply is setting the stage for the transition to an environment of sustainable growth by virtue of increased price discipline, a focus on quality developments and the fundamentals of long-term investment.

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