Dubai, UAE: Engel & Völkers Middle East’s latest report highlights that Dubai’s real estate market is transitioning from the sharp acceleration of recent years into a more mature and sustainability-led growth phase. While activity levels remain robust, the latest figures point to increasingly quality-driven demand across buyer segments, with a clear concentration of activity in higher-value residential product and tightening supply dynamics in prime commercial assets, particularly Grade A office space.

In residential, Dubai recorded 15,981 sales transactions, representing a 20.8% year-on-year increase versus 13,152 transactions in the same period last year. Total residential sales value reached AED 55.9 billion, up 55.3% YOY, underscoring the extent to which value growth continues to outpace volume growth and signalling a sustained shift toward higher-value purchases and premium locations.

This strength is particularly evident in the upper end of the market, where Dubai recorded over 1,000 transactions above AED 10 million in January, marking one of the strongest months on record for high-value residential activity. Demand was supported by both emerging luxury communities, including The Oasis, Palm Jebel Ali and Jumeirah Golf Estates 2, and established prime addresses such as Palm Jumeirah and Nad Al Sheba, reflecting an expanding and increasingly diverse premium segment. At the same time, the market continues to demonstrate depth across segments, with new development activity remaining a key driver and apartments leading overall transaction volumes. Rental fundamentals also remain supportive, with average gross yields rising to 6.9%, reinforcing Dubai’s positioning for income-led investors alongside end-user demand.

Across many key communities, price growth has remained positive, though the pace of increase is moderating compared to the exceptional gains recorded between 2023 and 2025. This points to a market evolving toward a more stable trajectory characterised by longer holding periods and a greater emphasis on buy-to-stay and buy-to-yield strategies.

Dubai’s commercial real estate market has entered 2026 from a position of strength, recording 1,446 sales transactions, up 23.7% year on year compared to 1,169 transactions in the same period last year, while total sales value reached AED 17.1 billion, representing an 82% YOY increase. Offices and retail were key drivers of activity, reflecting sustained capital deployment into core commercial assets and continued investor confidence in the city’s long-term occupier fundamentals.

The most pronounced signal within the commercial market has been the performance of the office segment, where transaction volumes increased by 133% year on year, while the total value of offices sold rose by 296%, highlighting an intensifying preference for prime, well-located stock. As availability of ready Grade A inventory tightens in core business districts, the market is increasingly rewarding quality and certainty, with a visible shift toward earlier commitments in the development cycle. The primary market accounted for 41.3% of commercial transactions in the latest period, indicating expanding off-plan participation supported by sustained demand and a limited pipeline of immediately available prime supply.

Commenting on the findings, Daniel Hadi, CEO of Engel & Völkers Middle East, said: “Dubai’s real estate market is demonstrating the characteristics of a more mature cycle, where demand is increasingly guided by quality, scarcity and long-term fundamentals. In residential, we are seeing continued expansion in premium transactions alongside more selective, value-driven decision-making across the market. In commercial, the acceleration in office transactions and values reflects tightening Grade A availability, driving a strategic shift towards the off-plan market as corporates and investors seek to secure long-term positioning. These dynamics reinforce Dubai’s status as a market defined by depth, liquidity and long-term resilience.”

Overall, Engel & Völkers’ latest report underscores a market that remains highly active while becoming increasingly differentiated, with best-in-class residential and prime commercial assets continuing to demonstrate strong pricing power, liquidity and investor conviction as Dubai moves further into a more mature phase of growth.

About Engel & Völkers: Engel & Völkers is one of the world’s leading service companies specialized in the brokerage of premium residential property, commercial real estate, yachts and aircrafts. For over 45 years now, the wishes and needs of private and institutional clients have had top priority, giving rise to the ongoing development of a range of services relating to all aspects of real estate. Sales and leaseholds, as well as consultancy for various investment opportunities in the real estate segment are among the core competencies of more than 16,700 people operating under the Engel & Völkers brand. The company is currently operating in over 35 countries on five continents. Intensive training schemes in its in-house real estate Academy and the high level of quality assurance governing its systematically structured service provision are key factors that account for the company’s success. Engel & Völkers develops digital tools and IT products on an ongoing basis in order to keep its service as efficient as possible. In doing so, the company is setting new standards in digital solutions for property brokerage. www.engelvoelkers.com

About Engel & Völkers Middle East: Established in 2014, Engel & Völkers Middle East has its offices in Dubai, United Arab Emirates. The team consists of over 200 trusted agents, each focusing on premium residential and commercial properties, serving as experts in their respective areas. The company recently established a separate entity for commercial real estate (Engel & Völkers Commercial Middle East). Engel & Völkers Commercial serves as an entry point to exceptional commercial real estate opportunities in Dubai, from attractive office spaces to industrial complexes. The Private Office provides services for affluent clients and has access to premium real estate globally. Whether you're in the market to rent, buy, or sell a property, Engel & Völkers Middle East is a perfect choice to achieve your real estate goals. www.engelvoelkers.com/ae/e

Press contact:

Diana Džaka Bičo
Marketing Director
Office 21 Mezzanine Level, Golden Mile 2,
Palm Jumeirah, Dubai UAE
Dubai, United Arab Emirates
diana.dzaka@engelvoelkers.com

Flor Pamintuan 
PR Account Director   
Ishraq Communications LLC                              
flor@ishraqcomms.com