Dubai’s real estate market has started 2026 on a historic high, recording AED 72.4 billion (USD 19.72 billion) in property transactions in January alone. This marks the strongest January performance ever, reflecting sustained confidence from buyers, investors, and end users across the emirate.

Market analysis by Property Finder shows a 63 percent year-on-year increase in transaction value, underlining Dubai’s position as one of the world’s most resilient and attractive real estate markets.

Off-Plan Properties Drive Market Growth

The primary market emerged as the main growth engine, with transaction values rising by 90 percent compared to January last year. Off-plan sales saw particularly strong momentum, supported by new project launches, flexible payment plans, and long-term capital appreciation expectations.

In value terms, off-plan transactions increased by 128 percent year-on-year, far exceeding growth in ready properties. This trend highlights buyer confidence in future supply and Dubai’s continued urban expansion.

Secondary Market Remains Stable and Value-Focused

While overall transaction volumes in the secondary market dipped slightly, total value continued to rise. Ready properties accounted for nearly 89 percent of secondary market value, indicating a clear preference for homes offering immediate occupancy and stable rental income.

Ready unit prices increased 48 percent year-on-year, reinforcing the appeal of completed properties, especially among end users and income-focused investors.

Apartments Lead Buyer and Renter Demand

Apartments remain the most in-demand property type across both sales and rentals:

• 78 percent of rental searches focused on apartments
• 59 percent of buyers searched for apartments, compared with 41 percent for villas and townhouses

Studios and one-bedroom units are gaining popularity, with around 70 percent of apartment buyers targeting one- or two-bedroom homes. This reflects a growing shift toward affordability and efficient living spaces as prices and rents continue to rise.

According to Dubai Land Department, more than 80 percent of mortgage-backed transactions are secured against apartments, confirming their role as the most accessible entry point into Dubai’s property market.

Mortgage Activity Strengthens Buyer Confidence

Mortgage transactions recorded 30 percent annual growth in both volume and value. This was supported by easing borrowing conditions, as the average three-month EIBOR declined from 4.0 percent to 3.5 percent, improving affordability and purchasing power.

End users continue to dominate the market, accounting for over 85 percent of total transactions, while investor demand is expected to rise further as new project handovers are completed in 2026.

What This Means for Dubai Real Estate in 2026

January’s performance signals a strong, balanced, and mature market. Off-plan growth, stable ready property demand, rising mortgage activity, and high buyer confidence all point toward sustained momentum throughout the year.

With population growth, infrastructure development, and long-term economic stability supporting demand, Dubai real estate continues to offer solid fundamentals for both residents and investors.