Dubai’s property market is set to enter a more selective and strategic phase in 2026, following a record-breaking year that reshaped demand patterns and reinforced the emirate’s position as a global real estate hub, according to Engel & Völkers Middle East.
The brokerage said 2026 will be defined less by rapid acceleration and more by consolidation, with performance increasingly linked to location quality, infrastructure maturity and long-term liveability rather than broad-based growth.
“Overall, the outlook for 2026 is one of stability, depth, and continued opportunity, with growth driven by fundamentals rather than momentum, and a market that continues to become one of the world’s most resilient and globally connected real estate environments,” said Daniel Hadi, CEO of Engel & Völkers Middle East.
Market direction 2026
Engel & Völkers expects Dubai to enter the new year from a position of strength, supported by continued wealth migration, competitive rental yields and sustained investor interest. However, the firm said results are likely to become more differentiated as new supply comes to market and buyers become increasingly selective.
Wealth inflows are expected to remain a key driver, particularly in the luxury segment, while rental yields are forecast to stay among the most competitive globally. The report noted that while additional apartment supply could begin to ease rental pressures, family-oriented villa communities are likely to remain undersupplied in several locations.
Record year 2025
The outlook for 2026 follows what Engel & Völkers described as a defining year for Dubai’s real estate sector. In its 2025 Annual Market Report, the firm said the market recorded its highest transaction volumes and values on record, alongside a shift toward deeper and more balanced participation.
“2025 was a defining year for Dubai’s real estate market. It delivered exceptional scale and confidence, but more importantly, it marked a shift in the market’s evolution,” Hadi said. “What stands out today is the market’s maturity, with demand spanning a wide spectrum of end-users and investors across established communities and emerging districts.”
Residential transactions reached 202,349 in 2025, with total sales value hitting Dhs 546.8 billion. Apartments accounted for 83 per cent of all transactions, while villas and townhouses continued to post strong results across both established and emerging communities.
Residential sales growth
Off-plan sales made up 64.8 per cent of all residential transactions, highlighting investor confidence in Dubai’s development pipeline, while secondary-market activity remained constrained by limited ready stock rather than weak demand.
“What stood out most in 2025 was the depth of demand we are seeing across all property types and locations,” said Robert Villalobos, Head of Brokerage at Engel & Völkers Dubai. “Buyer interest remains exceptionally broad-based, and activity in the secondary market continues to be driven by real end-user and investor demand rather than short-term sentiment.”
Apartment transactions rose to 167,841, with total value increasing 31.8 per cent year-on-year to Dhs 328.5 billion. Villa sales value climbed to Dhs 141.2 billion, up 30.5 per cent, supported by growing interest in upper mid-market communities priced between Dhs 4 million and Dhs 8 million.
Townhouse sales reached a record 22,904 transactions, with total value rising 12.9 per cent to Dhs 74.4 billion, reflecting sustained demand for family-oriented housing.
Luxury market demand
Dubai’s luxury residential segment also recorded strong activity in 2025, with 6,765 transactions above Dhs 10 million. Engel & Völkers said demand was spread across a wider range of locations, including waterfront and master-planned developments.
Palm Jumeirah remained the leading destination in the Dhs 10 million-plus segment, while Jumeirah and La Mer strengthened their positions as ultra-luxury hubs. Notable transactions included a Dhs 550 million off-plan penthouse at Bugatti Residences in Business Bay and a Dhs 425 million villa sale in Emirates Hills.
The report linked the segment’s performance to continued wealth migration into the UAE. Henley & Partners estimates that 9,800 millionaires will have relocated to the country by the end of 2025.
Buyer profile shift
Buyer data showed a growing emphasis on long-term ownership. UAE residents accounted for 75.5 per cent of Engel & Völkers buyers in 2025, while non-residents made up 24.5 per cent. The strongest demand came from the UK and Germany, followed by the UAE, India and France.
Commercial property gains
Dubai’s commercial real estate market also posted strong results, with sales reaching Dhs 135.6 billion across 13,175 transactions. Office sales led activity, with transaction volumes up 54.5 per cent year-on-year and total value more than doubling, driven by demand in well-connected business districts and growing interest in off-plan offices.
As Dubai moves into 2026, Engel & Völkers said the market’s next phase will be shaped by disciplined growth, stronger differentiation and a continued focus on long-term fundamentals rather than short-term momentum.
