Dubai property market begins 2026 on a strong note after record Dh682bn sales year

Population growth and sustained demand drive momentum

Dubai’s real estate sector has entered 2026 with solid early momentum, building on a record-setting performance achieved last year.

On the first working day of the new year, property transactions worth Dh771.12 million ($210 million) were recorded, highlighting continued investor confidence after the emirate delivered its strongest annual results to date. Activity was seen across residential, commercial and land segments, signalling broad-based demand and setting an upbeat tone for the year ahead.

The strong opening follows a landmark 2025, when Dubai posted its highest-ever real estate sales value. Data from the Dubai Land Department shows total property sales reached Dh682.49 billion ($185.8 billion), marking a rise of more than 30 per cent compared to Dh522.36 billion in 2024. This achievement represents the fifth consecutive year of record-breaking performance, further cementing Dubai’s status as one of the world’s most active property markets.

Strong start to the year

Official figures indicate that 204 transactions were completed on the first working day of 2026, comprising 140 residential units, 40 buildings and 24 land plots. Deals were spread across various price ranges and locations, underscoring the depth and resilience of market demand rather than reliance on a single segment.

High-value sales featured prominently, including a luxury apartment on Palm Jumeirah that sold for Dh33.5 million. Other notable transactions included a hotel apartment at Address Fountain Views, Tower 2, near Burj Khalifa, which achieved Dh14.4 million, and an apartment in Burj Khalifa that changed hands for Dh10.3 million. The mix of waterfront, downtown and mixed-use developments reflects continued interest from both local and international buyers.

Record-breaking 2025

The positive start to 2026 is a direct continuation of the momentum built last year. Alongside the headline sales value of Dh682 billion, total real estate transactions in 2025 reached 214,912. The final quarter was particularly strong, with Q4 sales climbing to a record Dh187.47 billion, representing a year-on-year increase of 26.86 per cent.

Apartments remained the most traded asset class, with Jumeirah Village Circle, Business Bay and Dubai Marina among the most active areas. One-bedroom units dominated both off-plan and secondary market transactions, reflecting demand from new residents and professionals. Villas also continued to attract end-users, with four-bedroom homes leading activity in established and emerging family-focused communities.

Population growth underpins demand

Sustained population growth has been a key driver of the market’s strength. Dubai’s population exceeded 4.03 million in 2025, with more than 208,000 new residents relocating to the emirate during the year for work, lifestyle and long-term settlement. Since 2014, Dubai has welcomed over 1.35 million new residents, creating a stable and growing demand base for housing.

Buyer demographics show that individuals aged 31 to 45 accounted for the majority of purchases, with the 36 to 40 age group leading activity. This trend points to increased end-user participation supported by career progression, long-term residency plans and lifestyle-driven ownership, rather than short-term speculation.

Looking ahead, new supply is expected to remain measured, with close to 100,000 units scheduled for handover in 2026. Most completions will be delivered within major master-planned communities such as Dubai Creek Harbour, Dubai Hills Estate, Damac Lagoons, Arabian Ranches 3, Arjan and Business Bay, supporting the market’s transition into another year of elevated activity as 2026 unfolds.