Dubai’s real estate market is transitioning from the sharp acceleration of recent years into a more mature and sustainability-led growth phase, said leading industry expert Engel & Völkers Middle East.
While activity levels remain robust, the latest figures point to increasingly quality-driven demand across buyer segments, with a clear concentration of activity in higher-value residential product and tightening supply dynamics in prime commercial assets, particularly Grade A office space, it stated.
On the residential sector, the expert said Dubai had recorded 15,981 sales transactions, representing a 20.8% year-on-year increase versus 13,152 transactions in the same period last year.
This has taken the total residential sales value to AED55.9 billion ($15.2 billion), up 55.3% YOY, underscoring the extent to which value growth continues to outpace volume growth and signalling a sustained shift toward higher-value purchases and premium locations, stated Engel & Völkers in its latest report.
This strength is particularly evident in the upper end of the market, where Dubai recorded over 1,000 transactions above AED10 million in January, marking one of the strongest months on record for high-value residential activity.
Demand was supported by both emerging luxury communities, including The Oasis, Palm Jebel Ali and Jumeirah Golf Estates 2, and established prime addresses such as Palm Jumeirah and Nad Al Sheba, reflecting an expanding and increasingly diverse premium segment.
At the same time, the market continues to demonstrate depth across segments, with new development activity remaining a key driver and apartments leading overall transaction volumes. Rental fundamentals also remain supportive, with average gross yields rising to 6.9%, reinforcing Dubai’s positioning for income-led investors alongside end-user demand.
Across many key communities, price growth has remained positive, though the pace of increase is moderating compared to the exceptional gains recorded between 2023 and 2025.
This points to a market evolving toward a more stable trajectory characterised by longer holding periods and a greater emphasis on buy-to-stay and buy-to-yield strategies.
Dubai’s commercial real estate market has entered 2026 from a position of strength, recording 1,446 sales transactions, up 23.7% year on year compared to 1,169 transactions in the same period last year, while total sales value reached AED17.1 billion, representing an 82% YOY increase.
Offices and retail were key drivers of activity, reflecting sustained capital deployment into core commercial assets and continued investor confidence in the city’s long-term occupier fundamentals, stated Engel & Völkers in the report.
The most pronounced signal within the commercial market has been the performance of the office segment, where transaction volumes increased by 133% year on year, while the total value of offices sold rose by 296%, highlighting an intensifying preference for prime, well-located stock.
Commenting on the findings, Daniel Hadi, CEO of Engel & Völkers Middle East, said: "Dubai’s real estate market is demonstrating the characteristics of a more mature cycle, where demand is increasingly guided by quality, scarcity and long-term fundamentals."
"In residential, we are seeing continued expansion in premium transactions alongside more selective, value-driven decision-making across the market. In commercial, the acceleration in office transactions and values reflects tightening Grade A availability, driving a strategic shift towards the off-plan market as corporates and investors seek to secure long-term positioning. These dynamics reinforce Dubai’s status as a market defined by depth, liquidity and long-term resilience," he noted.
As availability of ready Grade A inventory tightens in core business districts, the market is increasingly rewarding quality and certainty, with a visible shift toward earlier commitments in the development cycle.
The primary market accounted for 41.3% of commercial transactions in the latest period, indicating expanding off-plan participation supported by sustained demand and a limited pipeline of immediately available prime supply, it added.
Overall, Engel & Völkers’ latest report underscores a market that remains highly active while becoming increasingly differentiated, with best-in-class residential and prime commercial assets continuing to demonstrate strong pricing power, liquidity and investor conviction as Dubai moves further into a more mature phase of growth.
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