The real estate market in Dubai continued its strong upward momentum in the first quarter of 2026, recording 47,996 property transactions valued at AED176.7 billion ($48.11 billion). This reflects a 5.5% increase in transaction volume and a notable 23.4% rise in total value year-on-year, highlighting sustained investor confidence in the emirate’s property sector.
According to a recent market analysis by fäm Properties, the off-plan segment remained the primary growth driver, contributing 70% of total transactions and 71% of the overall sales value during the quarter. The trend reflects strong demand for newly launched developments by leading developers across Dubai.
Data released via DXBinteract further confirmed the segment’s strength in March alone, with 10,303 off-plan transactions totaling AED31.2 billion, marking increases of 5.4% in volume and 8.9% in value compared to the same period last year.
Industry experts attribute this growth to Dubai’s transparent regulatory environment, expanding infrastructure pipeline, and long-term investment appeal despite regional economic uncertainty.
Apartments led the market performance in Q1 with 36,428 transactions worth AED75.2 billion, representing a 10.5% increase in value year-on-year. Meanwhile, villa transactions rose 17.9% in volume, reaching 8,261 deals valued at AED59.1 billion.
Commercial real estate also recorded significant momentum, with office and retail property transactions increasing by 69.1% in value to AED10.2 billion, even though transaction volume saw a marginal decline of 0.6%.
Plot sales continued their steady growth trajectory as well, rising 3.2% in volume to 1,193 transactions and 14.3% in value to AED31.9 billion.
In terms of pricing trends, median villa prices in the primary market climbed 35.3% year-on-year to AED4.1 million, while off-plan apartment prices increased 3.1% to AED1.4 million. However, plot prices declined 23.6%, indicating shifting buyer preferences toward ready-to-move properties.
The resale market followed a similar trend, with villa prices increasing 16.2% year-on-year to AED4.3 million, while apartment resale prices rose 6.3%. Plot resale prices, however, dropped sharply by 38.3%.
Mortgage activity also strengthened during the quarter, with 11,829 mortgage transactions recorded, marking a 7.5% annual increase and a total value of AED59.8 billion, up 46% year-on-year. Cash buyers continued to dominate the secondary market, accounting for 67% of resale transactions.
Among the most notable deals, the highest-value apartment sale reached AED422 million at Aman Residences Tower 2, while the most expensive villa transaction totaled AED350 million at Jumeirah First.
Transaction activity was particularly strong in emerging communities such as Al Barsha South Fourth, where competitive pricing and new off-plan launches continue to attract both investors and end-users.
Overall, Dubai’s property market performance in Q1 2026 reflects continued resilience, strong demand for off-plan developments, and sustained investor confidence across residential and commercial segments. 📈
