{"id":12401,"date":"2026-02-12T05:42:54","date_gmt":"2026-02-12T05:42:54","guid":{"rendered":"https:\/\/www.luxliving.ae\/blog\/?p=12401"},"modified":"2026-02-17T07:02:09","modified_gmt":"2026-02-17T07:02:09","slug":"dubai-real-estate-market-soars-to-19-7-billion-in-record-start-to-2026","status":"publish","type":"post","link":"https:\/\/www.luxliving.ae\/blog\/dubai-real-estate-market-soars-to-19-7-billion-in-record-start-to-2026\/","title":{"rendered":"Dubai Real Estate Market Soars to $19.7 Billion in Record Start to 2026"},"content":{"rendered":"
\"dubai<\/figure>\n\n\n

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.<\/p>\n\n\n\n

Off-Plan Properties Leading the Way<\/strong><\/h2>\n\n\n\n

This growth is being driven by the primary market, particularly off-plan properties in Dubai<\/a>. 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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Secondary Market Remains Strong<\/strong><\/h2>\n\n\n\n

Dubai\u2019s secondary market, which includes ready-to-move-in properties<\/a>, 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.<\/p>\n\n\n\n

Apartments Lead Buyer and Renter Preferences<\/strong><\/h2>\n\n\n
\"apartments<\/figure>\n\n\n

Renters’ and buyers’ decisions are still influenced by affordability and convenience. Renters’ (78%) and buyers’ (59%) searches are dominated by apartments<\/a>,<\/mark> with townhouses<\/a> <\/mark>and villas<\/a><\/mark> 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.<\/p>\n\n\n\n

Premium Buyers Boost Villas and Townhouses<\/strong><\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

Mortgage Market Boosts Buying Power<\/strong><\/h2>\n\n\n
\"dubai<\/figure>\n\n\n

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.<\/p>\n\n\n\n

Market Outlook  <\/strong><\/h2>\n\n\n\n

Meanwhile, the Dubai Land Department (DLD<\/mark><\/a>) and the Virtual Assets Regulatory Authority<\/a> <\/mark>(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.<\/p>\n\n\n\n

Takeaway for Investors and Purchasers<\/strong><\/h2>\n\n\n
\"Dubai<\/figure>\n\n\n

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.<\/p>\n\n\n\n

For more information and to explore the best properties in Dubai, visit our website at Luxliving.ae<\/mark><\/a>.<\/p>\n\n\n\n

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