Dubai’s residential property market continued to grow in value during the first quarter of 2026, even as buyers became more selective on pricing and property type, according to the latest betterhomes report.
The report showed 44,493 residential transactions in Q1 2026, an increase of 4 per cent year-on-year. Total transaction value rose 21 per cent to Dhs139.2 billion.
However, activity slowed compared to the previous quarter, with transaction volumes down 17 per cent quarter-on-quarter. The report linked this to slower decision-making in March rather than a drop in overall demand.
Off-plan demand
Off-plan properties remained the main driver of market activity, making up 68 per cent of all transactions.
Off-plan volumes rose 20 per cent year-on-year, while transaction value increased 35 per cent. In contrast, secondary market transactions fell 19 per cent year-on-year, showing greater price sensitivity in ready homes.
Buyer preferences continued to move towards larger homes. Enquiries declined 18 per cent year-on-year, but demand for villas and townhouses increased 15 per cent. Apartment enquiries dropped 31 per cent.
Investors also played a larger role, accounting for 57 per cent of transactions compared to 50 per cent in Q1 2025.
Prime segment growth
High-end properties continued to show strong performance. Transactions above Dhs15 million rose 43 per cent year-on-year to 1,214 deals, supported by an 84 per cent increase in off-plan activity within the segment.
The leasing market became more competitive during the quarter. Enquiries increased 7 per cent year-on-year, but transactions fell 5 per cent year-on-year and 26 per cent quarter-on-quarter.
betterhomes noted that increased supply and more selective tenant behaviour slowed deal closures. New rental prices in prime apartment communities dropped by 10 to 20 per cent year-on-year.
March recorded the steepest monthly change, with enquiries falling by more than 40 per cent, influenced by seasonal patterns and regional developments.
Market outlook
Louis Harding, CEO of betterhomes, said: “Given the regional developments in March, some moderation in decision-making was expected. What matters is that the underlying data still points to a resilient market. Transactions were up 4% year-on-year, while total value increased 21% to Dhs 139.2 billion. Activity has become more measured, but capital continues to move, which points to a market becoming more disciplined rather than losing momentum.”
betterhomes said the market is not weakening, but becoming more mature, with performance increasingly shaped by pricing discipline, product quality and positioning.
tanvir@dubainewsweek.com
