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Dubais real estate market saw strong growth in Q1 2026, with 47,996 property transactions worth AED176.7 billion, reflecting rising investor demand. The off-plan segment dominated activity, contributing around 70% of total deals, supported by new project launches. Apartments led in volume, while villas recorded significant value growth and rising prices. Commercial and mortgage transactions also increased, indicating higher investment activity. Key areas such as Dubai South and Al Barsha South saw high traction. Despite a dip in plot prices, the market remains driven by new supply, strong buyer interest and confidence in Dubai's real estate fundamentals.
Dubai's real estate market recorded strong transactional activity in the first quarter of 2026, with 47,996 property sales valued at AED176.7 billion, marking a 5.5% increase in volume and a 23.4% rise in value compared to the same period last year, according to an analysis by fm Properties released in the past week. The data reflects continued investor participation and sustained demand across asset classes despite broader regional uncertainties. Advertisement
The off-plan segment remained the primary driver of market activity, accounting for approximately 70% of total transactions and 71% of overall value during the quarter. This trend has been supported by an ongoing pipeline of new project launches from developers. Monthly data for March indicated continued strength in this segment, with over 10,000 transactions valued at AED31.2 billion, reflecting year-on-year increases in both volume and value.
Apartments accounted for the largest share of transactions, with 36,428 deals worth AED75.2 billion, registering a 10.5% increase in value. Villas also demonstrated strong performance, with transaction volumes rising 17.9% year-on-year to 8,261 deals, generating AED59.1 billion in value. In the commercial segment, transaction values increased significantly to AED10.2 billion despite a marginal decline in volume, indicating higher ticket sizes.
Plot transactions showed a mixed trend, with volumes rising modestly while values increased by 14.3% to AED31.9 billion. However, pricing data suggested a decline in median plot values, indicating a possible shift in buyer preference towards ready or built assets. In contrast, villa pricing continued to strengthen, with median prices in the primary market rising 35.3% year-on-year to AED4.1 million. Apartment prices in the off-plan segment recorded a more moderate increase of 3.1% to AED1.4 million.
The resale market mirrored similar trends, with villa prices increasing 16.2% year-on-year to AED4.3 million, while apartment resale values rose 6.3%. Plot resale prices declined significantly, indicating reduced demand in that segment.
Financing activity also expanded during the quarter. Mortgage transactions rose by 7.5% to 11,829, while the total value of mortgage-backed deals increased by 46% to AED59.8 billion. Despite this growth, cash transactions continued to dominate the resale market, accounting for 67% of deals, compared to 33% financed through mortgages.
Geographically, transaction activity was concentrated in emerging areas offering competitive pricing and new supply, with locations such as Al Barsha South Fourth, Dubai South and Al Yelayiss 1 recording the highest volumes. High-value transactions during the quarter included a sale of AED422 million at Aman Residences Tower 2 and a villa transaction of AED350 million at Jumeirah First.
The data indicates that Dubai's residential market continues to be driven by new supply and investor demand, particularly in the off-plan segment. Strong performance in villas and sustained leasing and sales activity suggest continued momentum, with pricing trends and financing activity reflecting confidence in the market's underlying fundamentals.
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