Dubai’s residential property market began 2026 with higher sales activity and steady prices, as demand for mid-market homes and investor interest continued, according to January figures released by betterhomes.
Residential transactions totalled Dhs 55.2 billion from 15,764 deals during the month, marking a strong start after a busy end to 2025.
Sales market activity
Sales value rose 18.7 per cent compared to December, while transaction volumes increased by 8.9 per cent. Average prices were largely unchanged at Dhs 1,924 per square foot, reflecting a marginal month-on-month increase of 0.25 per cent.
Off-plan properties made up 67 per cent of all transactions, with apartments accounting for most sales. One-bedroom units recorded the highest number of transactions, highlighting continued demand from both end-users and investors in the mid-market segment.
At betterhomes, buyer leads increased by 22 per cent month-on-month. Investors represented 56 per cent of buyers, while end-users accounted for the remaining 44 per cent.
Louis Harding, CEO of betterhomes, said, “Starting the year with Dhs 55.2 billion in sales across nearly 16,000 transactions underscores the market’s resilience and depth. Demand is being absorbed steadily rather than in a rush, signalling confidence across buyer segments.”
He added, “The combination of rising volumes and stable pricing points to a market driven by participation rather than speculation. From mid-market homes to investment-led opportunities, buyers are making deliberate, confident moves.”
Rental market trends
Leasing activity also remained strong, with 48,966 rental transactions recorded in January. Renewals accounted for 64 per cent of contracts, while new leases made up 36 per cent, pointing to high tenant retention alongside continued population growth.
Rental increases were selective. The Lakes recorded the highest month-on-month villa rental growth at 3 per cent, with average rents reaching Dhs 365,000. In the apartment segment, Al Khail Heights also saw 3 per cent growth, with average rents of Dhs 70,000.
Betterhomes reported rental rates above market averages, particularly for villas, where achieved rents reached an average of Dhs 399,000.
Rupert Simmonds, Leasing Director at betterhomes, said, “Nearly 49,000 rental transactions in January show a market defined by stability and sustained demand. Renewal rates remain strong, reflecting tenants’ preference for continuity.”
He added, “Villa rental rates continue to outperform market averages, with AED 399,000 achieved on average. The demand for quality homes underscores Dubai’s resilience as a long-term rental market.”
