Dubai’s real estate market is transitioning from the rapid acceleration of recent years to a more mature, sustainability-driven growth phase, industry expert Engel & Völkers Middle East has said.
It said that while activity levels remain strong, the latest figures show a clear focus on higher-value residential products, tighter supply relationships, particularly for key commercial assets such as Grade A office space, and increasing demand for quality across the buyer base.
Regarding the housing sector, experts said Dubai recorded 15,981 sales transactions, which corresponds to a 20.8% year-on-year increase compared to 13,152 transactions in the same period last year.
This brought total home sales to AED 55.9 billion ($15.2 billion), up 55.3% year-on-year, confirming that value growth continues to outpace volume growth, and indicating a continued shift towards higher value purchases and luxury properties, Engel & Völkers, a global real estate and services company headquartered in Hamburg, Germany, said in its latest report.
This strength was particularly evident in the luxury market, with Dubai recording more than 1,000 transactions worth over Dh10 million in January, making it one of the busiest months on record for high-value home transactions.
Demand reflected the expansion and diversification of the premium segment, supported by both emerging luxury communities such as The Oasis, Palm Jebel Ali and Jumeirah Golf Estates 2, as well as established prime addresses such as Palm Jumeirah and Nad Al Sheba.
At the same time, the market continues to show depth across segments, with new development activity remaining the key driver and condominiums leading overall transaction volumes. Rental fundamentals also remain supportive, with average gross yields rising to 6.9%, reinforcing Dubai’s positioning for income-driven investors along with end-user demand.
Price growth continues to be positive in many major communities, but at a slower pace compared to the extraordinary increases recorded between 2023 and 2025.
This indicates that the market is evolving towards a more stable trajectory characterized by longer holding periods and greater emphasis on buy-to-stay and buy-to-yield strategies.
Dubai’s commercial real estate market entered 2026 on a strong note, recording 1,446 sales transactions, an increase of 23.7% year-on-year compared to 1,169 transactions in the same period last year, and total sales amounting to AED 17.1 billion, an 82% increase year-on-year.
Engel & Völkers said in a report that office and retail were the key drivers of activity, reflecting continued capital deployment in core commercial assets and continued investor confidence in the city’s long-term occupier fundamentals.
The most telling sign in the commercial market was the performance of the office sector, with transaction volumes up 133% year-on-year and gross office sales up 296%, highlighting a growing preference for blue-chip stocks in prime locations.
Commenting on the findings, Daniel Hadi, CEO of Engel & Völkers Middle East, said: “Dubai’s real estate market is exhibiting the characteristics of a more mature cycle, with demand increasingly being guided by quality, scarcity and long-term fundamentals.”
“In the residential market, we are seeing more selective, value-based decision-making across the market, as well as a continued expansion of premium deals.In the commercial market, the acceleration in office deals and values reflects the tightening of Grade A availability, and businesses and investors is driving a strategic shift into unplanned markets as it seeks to secure its long-term positioning. These dynamics strengthen Dubai’s position as a market defined by depth, liquidity and long-term resilience,” he said.
With ready-to-read Grade A stocks tightening in core business districts, the market is increasingly focused on quality and certainty, and there is a clear shift towards earlier commitments in the development cycle.
It added that in the most recent period, the primary market accounted for 41.3% of commerce, indicating growing unplanned participation supported by sustained demand and a limited pipeline of readily available prime supply.
Overall, Engel & Völkers’ latest report highlights that the market remains highly active and differentiated, with best-in-class residential and prime commercial assets continuing to demonstrate strong pricing power, liquidity and investor conviction as Dubai moves into a more mature growth phase.
Copyright 2026 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
