Dubai Real Estate Market Soars to $19.7 Billion in Record Start to 2026

Dubai’s real estate market has started with a spectacular transaction value of a record AED 72.4 billion ($19.7 billion) for January 2026. This is a 63% gain over the previous year, highlighting that both investors and purchasers are very confident for both off-plan and ready properties.

Off-Plan Properties Leading the Way

This growth is being driven by the primary market, particularly off-plan properties in Dubai. While ready properties in the primary market increased 49% in January, off-plan property values in new developments increased 128% year over year. Buyers are attracted to new buildings that provide contemporary architecture and flexible payment plans because they trust developers.

Off-plan properties in the secondary market, on the other hand, saw a slight decline, with volumes dropping 27% and prices down 9%, indicating that buyers prefer to buy directly from developers for new projects.

Secondary Market Remains Strong

Dubai’s secondary market, which includes ready-to-move-in properties, is still a big component of the market. The whole value of the secondary market grew by 38% over the previous year. Nearly 89% of the market is made up of ready-to-move-in properties, whose values have increased by 48% and transaction volumes by 8%. Individuals are seeking residences that provide a high rental income or that they can move into right away.

Apartments Lead Buyer and Renter Preferences

Renters’ and buyers’ decisions are still influenced by affordability and convenience. Renters’ (78%) and buyers’ (59%) searches are dominated by apartments, with townhouses and villas making up the remaining demand. One- or two-bedroom apartments are particularly popular, and this reflects Dubai’s growing rental costs and the need for small, reasonably priced houses in well-connected neighborhoods.

Premium Buyers Boost Villas and Townhouses

The demand for luxury villas and townhouses is being driven by high-income buyers who make over AED 40,000 a month. In the meantime, the primary entry point for people making less than AED 40,000 is still apartments. The majority of mortgage-backed transactions (more than 80%) are associated with apartments. Over 85% of all market transactions are made by owner-occupiers, showing that the market is still driven by end users.

Mortgage Market Boosts Buying Power

With volumes and prices up 30% annually, Dubai’s mortgage sector is still growing. Buyer affordability has increased as a result of declining interest rates, with the average three-month EIBOR falling from 4.0% to 3.5%. Mortgage financing is still a major factor in gaining access to higher-value properties in Dubai, especially with several handovers expected in 2026.

Market Outlook

Meanwhile, the Dubai Land Department (DLD) and the Virtual Assets Regulatory Authority (VARA) are set to launch a pilot program to tokenize 7.8 million assets, enabling fractional ownership and a digital secondary market. This innovation improves transparency, accessibility, and investment opportunities.

Takeaway for Investors and Purchasers

The Dubai real estate market is strong and well-balanced in early 2026. Off-plan demand is increasing, ready-to-move-in properties are still worth their price, and mortgage support is assisting purchasers. Dubai continues to offer opportunities for investors and end users in a transparent, controlled, and continually expanding industry.

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