Dubai’s ultra-prime residential property market recorded strong growth in the first half of 2026, with sales of high-value homes above US$10 million rising by 23% compared with the same period last year, according to market analysis from Engel & Völkers Middle East.
The report found that 320 ultra-prime residential properties were sold between January and June 2026, with total transaction value reaching US$6 billion. These properties accounted for 9.7% of Dubai’s overall residential sales value during the period.
Residential market performance
Dubai recorded 80,509 residential property sales in the first half of 2026, with a combined value of Dhs226.5 billion. The market remained active across different price segments, attracting both local and international buyers.
Activity was strong at the start of the year before regional uncertainty from late February led buyers and investors to take more time before making decisions. Transaction levels began recovering towards the end of the first half, showing continued demand for Dubai real estate.
Property values remained stable, particularly in established villa communities and the prime residential segment. Buyers increasingly focused on factors such as location, property quality, developer reputation and long-term value.
Luxury areas attract buyers
High-value transactions continued across key Dubai locations, including Jumeirah, Jumeirah Asora Bay and the Dubai Water Canal. Demand remained focused on residences offering waterfront views, privacy, architectural design and access to amenities.
While established luxury areas continued to attract buyers, new developments also gained attention from high-net-worth investors looking for modern homes and lifestyle-focused communities.
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.”
Commercial market grows
Dubai’s commercial real estate sector also recorded growth during the first half of 2026. A total of 6,470 commercial properties were sold, with a combined value of Dhs62.2 billion. This represented increases of 7% in transaction volume and 6% in value compared with the first half of 2025.
Office and retail properties recorded strong activity. Office sales increased by 35.3% year-on-year to 2,570 transactions, while retail transactions rose by 50.2% to 853. Office sales value reached Dhs15.8 billion, compared with Dhs5.4 billion during the same period last year.
Off-plan demand rises
Investment in off-plan commercial properties increased significantly, with transactions rising from 1,239 in H1 2025 to 3,123 in H1 2026. The value of these transactions increased from Dhs3 billion to Dhs17 billion.
The growth reflected investor interest in new office spaces, retail developments and commercial projects in Dubai’s expanding business districts and mixed-use communities.
The leasing market also remained active, with 163,356 commercial rental transactions recorded during the first half of the year.
Market outlook
Engel & Völkers expects activity to remain more measured during the summer months before potentially gaining momentum towards the end of 2026.
The company said Dubai’s population growth, international investment, economic diversification and infrastructure development continue to support the emirate’s position as a major residential and business hub. Quality, location and long-term value are expected to remain key factors influencing property decisions.
