Dubai’s real estate market recorded more than Dhs180 billion in residential and commercial sales in the first quarter of 2026, supported by a sharp rise in high-value property transactions, according to a report by Engel & Völkers Middle East.
Luxury demand rises
The luxury segment played a major role in the market’s performance, with 2,148 transactions above Dhs10 million, marking a 62.6 per cent increase compared to the same period last year. This is one of the highest quarterly totals recorded for high-end property deals in Dubai.
Several large transactions stood out during the quarter, including a Dhs422 million off-plan residence at Aman Residences, a Dhs350 million villa in Jumeirah Asora Bay, and a Dhs340 million villa on Jumeirah Bay Island. These deals reflect continued demand from high-net-worth buyers.
Market activity strong
Overall, Dubai recorded 44,743 residential transactions in the first three months of the year, with total sales reaching Dhs143.1 billion. This represents a 22.2 per cent increase year-on-year.
Demand remained strong in the mid-market segment, while off-plan properties continued to account for a large share of transactions, showing ongoing investor interest in new developments.
Luxury activity was also seen across multiple communities. Established areas such as Dubai Hills Estate, Palm Jumeirah and Nad Al Sheba remained active, while newer developments including Palm Jebel Ali, Naia Island and La Mer gained attention.
Market activity slowed slightly towards the end of the quarter following regional tensions in late February. Buyers and tenants took more time to make decisions, leading to a moderation in transactions, especially in March.
Daniel Hadi said: “Dubai’s real estate market continues to demonstrate exceptional depth, particularly at the luxury end, where demand remains highly resilient. What we saw in March was a natural pause linked to evolving regional conditions, but also a transition towards a more mature phase where buyers and investors become increasingly focused on value, quality, and long-term fundamentals.”
Commercial growth steady
The commercial real estate sector also recorded strong growth. Dubai saw 3,619 commercial transactions in the first quarter, with total sales reaching Dhs37.9 billion, up 32 per cent year-on-year.
Office properties led this growth, with 1,565 transactions, a 74.5 per cent increase compared to last year. Average office prices rose to Dhs3,047 per square foot, driven by demand for high-quality workspaces, especially in off-plan projects in areas such as Al Sufouh, Business Bay and Dubai Maritime City.
Retail real estate also performed well, supported by population growth and expanding residential communities, with demand focused on mixed-use and high-density areas.
Outlook remains positive
Across both sectors, buyers and investors are becoming more selective, focusing on quality, location and long-term value.
Hadi added, “Short-term shifts in sentiment are expected in any evolving market. What the data continues to show is that the underlying drivers of Dubai real estate, including population growth, business expansion, and sustained capital inflows, remain intact, and they continue to support the market’s long-term trajectory.”
While activity may remain measured in the near term, the overall outlook for Dubai’s property market remains stable, supported by strong fundamentals.
tanvir@dubainewsweek.com
