Dubai’s real estate market maintained robust activity in the second quarter of 2026, recording $29.4 billion in property transactions, with off-plan homes continuing to drive demand and buyer confidence remaining strong across the emirate.

The data, released by the Dubai Land Department, shows that the residential real estate market recorded AED 227.1 billion in transactions across 82,979 deals in the first half of 2026. Off-plan properties accounted for approximately two-thirds of residential transaction volume, reflecting continued investor appetite for under-construction projects.

Office sales in Dubai reached a record AED 15.8 billion ($4.3 billion) in the first half of 2026, with transactions rising 38 percent compared to the same period last year. The office segment’s strong performance signals growing demand from businesses expanding operations in the emirate, particularly in sectors such as technology, financial services, and professional services.

Dubai attracted 29,312 new property investors in the first quarter of 2026 alone, as foreign real estate investment in the emirate rose 26 percent year on year to AED 148.35 billion ($40.4 billion). The influx of new investors points to continued global confidence in Dubai’s property market as a safe-haven destination for capital allocation.

However, market analysts at CBRE Middle East noted that the real estate landscape is showing signs of entering a more selective phase. While transaction volumes remain high by historical standards, they have dropped from the record-breaking peaks seen in 2024 and 2025, suggesting the market is normalizing rather than cooling.

Dubai’s residential stock is approaching 1 million homes as 2026 deliveries rise, driven by strong demand, population growth, and a robust development pipeline. The expanding supply is expected to bring more balance to the market, particularly in the rental segment where rates have risen sharply in recent years.

Rental data shows that Al Warsan First led the rental market year-to-date, followed by Jebel Ali First, Al Barsha South Fourth, and Business Bay. These areas have attracted tenants seeking value-priced accommodations with access to major employment corridors.

The emirate’s expanding private wealth base is also adding demand across larger residential formats. The UAE attracted approximately 9,800 new high-net-worth individuals in the past year, many of whom have purchased luxury properties in prime Dubai neighborhoods.

Despite the positive trajectory, some analysts caution that Dubai’s real estate market experienced a sharp correction amid West Asia conflict involving Iran, Israel, and the United States earlier in 2026, highlighting the market’s vulnerability to regional geopolitical events. However, the subsequent recovery in transaction volumes suggests underlying demand fundamentals remain intact.

Dubai Land Department Statistics | CBRE UAE Real Estate Market Review Q2 2026