Dubai’s residential property market remained stable in the first quarter of 2026, with strong demand continuing across key segments despite a slight slowdown in overall activity, according to a report by Savills.
A total of 45,208 transactions were recorded in Q1. While this reflects a 17 percent decline from the previous quarter, activity in January and February remained in line with last year’s strong performance.
The report noted that the easing in March was temporary and linked to seasonal factors such as Ramadan, Eid holidays and school spring breaks, along with broader regional developments.
Off-plan strength
Off-plan properties continued to lead the market, making up 72 percent of total transactions during the quarter.
Demand remained strong for new and high-quality developments, supported by long-term investor confidence in Dubai’s property sector.
Prime resilience
The prime residential segment also showed strength, with 2,064 transactions recorded for properties priced above Dhs10 million.
Demand for well-located and premium homes remained steady, even as overall activity moderated toward the end of the quarter.
Price growth
Property prices continued to rise across Dubai in Q1. Average apartment prices increased to Dhs2,010 per square foot, up from Dhs1,942 last year.
Villa and townhouse prices also saw growth, reaching Dhs1,664 per square foot compared to Dhs1,501 previously.
Market outlook
Andrew Cummings, Head of Residential Agency at Savills Middle East, commented: “What we are seeing is a natural shift towards a more measured and considered market environment following an extended period of strong activity. While some short-term moderation has emerged, particularly in March, this is being shaped by a combination of external factors and seasonal patterns rather than any structural change in demand. These trends need to be interpreted with caution, whilst not only being informed by evolving geopolitical developments, but also considering the broader quarterly period’s context.
Dubai’s residential market continues to be underpinned by strong fundamentals that have emerged through the years, including sustained investor interest, population growth and the city’s global appeal. High-quality developments and well-located assets are continuing to attract both end-users and investors, reinforcing confidence in the market’s long-term trajectory. What is clear is that in the short term the market has flipped from a sellers’ market to a buyers’ market where buyers look for value and sellers cash in on previous capital gains.”
The report said market conditions are expected to remain balanced in the coming months, supported by steady demand, population growth and continued interest from investors.
