The UAE real estate market delivered a record-breaking start to 2026, highlighting strong investor confidence and continued demand across the country’s major property markets. Real estate activity in Dubai, Abu Dhabi, Sharjah and Ajman increased significantly during the first quarter, reinforcing the UAE’s position as one of the world’s leading destinations for property investment.

Dubai remained the biggest contributor to the market’s performance. According to Dubai Land Department data, real estate transaction value reached AED 252 billion ($68.6 billion) in Q1 2026, representing a 31% year-on-year increase. The emirate recorded 718,160 real estate procedures during the quarter, while 60,303 disposals were completed, up 6% compared with the same period in 2025.

Investor participation also continued to expand. Dubai recorded 48,448 investors, an 8% annual increase, including 29,312 new investors. Investment activity reached 57,744 investments worth AED 173 billion, demonstrating strong demand from both local and international buyers. Foreign investment remained particularly important, with foreign investments rising 26% year on year to approximately AED 148.35 billion.

Abu Dhabi also achieved its strongest quarterly performance on record. The emirate recorded AED 66 billion in real estate transactions, representing a remarkable 160.7% increase compared with Q1 2025. A total of 13,518 transactions were completed, more than double the 6,896 transactions recorded a year earlier.

Foreign investment played a major role in Abu Dhabi’s growth. Foreign direct investment by individuals reached AED 8.27 billion, increasing 423% year on year, with investors from 99 nationalities participating in the market. Strong activity was recorded in major investment destinations including Hudayriyat Island, Reem Island, Saadiyat Island and Yas Island.

Sharjah also recorded significant growth during the quarter. Real estate trading reached AED 18.5 billion, compared with AED 13.2 billion during Q1 2025, representing a 40.7% increase. The emirate recorded 29,235 transactions, while investors from 113 nationalities participated in the market, reflecting growing international interest.

Ajman maintained steady momentum as well, recording AED 6.22 billion in real estate transactions across 3,890 transactions. Trading activity alone reached AED 4.24 billion, demonstrating continued demand for property opportunities outside the UAE’s two largest markets.

The strong Q1 performance reflects several factors supporting the UAE property market, including population growth, international investor demand, economic diversification, infrastructure development and an expanding range of residential and investment opportunities. Dubai’s luxury segment was particularly strong, with luxury property investments reaching AED 87.7 billion, up 26% year on year.

Overall, the record Q1 results indicate that the UAE real estate sector entered 2026 with considerable momentum. Continued foreign investment, rising investor participation and strong performance across multiple emirates suggest that the property market remains an important pillar of the UAE economy and continues to attract buyers seeking long-term opportunities.