The Dubai real estate market has shown remarkable resilience and growth in the first quarter of 2026. Notably, the off-plan segment is leading this charge, reflecting robust investor confidence and a steady demand for properties. With significant sales transactions recorded, the market is on track to make substantial gains moving forward.

Strong Performance in Sales Transactions

In the first quarter of 2026, Dubai’s real estate sector reported a total of 47,996 sales transactions, accumulating AED 176.7 billion (approximately $48.11 billion). This represents a 5.5% increase in transaction volume and a remarkable 23.4% rise in value compared to the previous year. According to a recent report by fäm Properties, such figures highlight the enduring strength and appeal of the Dubai property market, even amidst regional uncertainty. CEO Firas Al Msaddi noted that the investor confidence is driven by solid fundamentals and long-term growth prospects.

In March alone, the off-plan market delivered impressive results with 10,303 sales transactions generating AED 31.2 billion. This reflects a year-on-year increase of 5.4% in volume and 8.9% in value. The off-plan segment has solidified its position in the market, accounting for 70% of transaction volume and 71% of overall value. The ongoing development pipeline from major developers greatly contributes to these dynamics, affirming the continued growth trajectory of this segment.

Surge in Villa Prices

Amid this robust market environment, villa prices in Dubai’s primary market have surged significantly. The median price for villas increased by 35.3% year-on-year, reaching AED 4.1 million. Similarly, off-plan apartments saw a price uptick of 3.1% to AED 1.4 million. In contrast, the price of plots declined by 23.6%, suggesting a shift in buyer preferences towards completed properties. The resales market mirrored this trend, with villa prices climbing 16.2% to AED 4.3 million, positioning them 35.1% above 2014 levels.

The mortgage sector has also seen a positive trend, with transactions rising by 7.5% to 11,829 in Q1. The cumulative value of these mortgage transactions hit AED 59.8 billion, marking a significant 46% increase year-on-year. Notably, cash transactions constituted 67% of resale activity, indicating a strong reliance on liquidity among buyers in this flourishing market.

High-Value Transactions and Emerging Communities

The first quarter of 2026 was marked by jaw-dropping high-value transactions. The priciest property sold for AED 422 million at Aman Residences Tower 2, while a villa at Jumeirah First fetched AED 350 million. Emerging communities like Al Barsha South Fourth have become hotspots for activity, with this area alone facilitating 3,162 transactions valued at AED 4 billion. Other notable areas included Dubai South and Al Yelayiss 1, all drawing buyers through competitive pricing and fresh off-plan launches.

In the apartment segment, Dubai Creek Harbour topped the average sale price at AED 2.94 million, while Nad Al Sheba First recorded the highest price per square foot at AED 3,567. The villa market similarly showcased premium pricing, with Me’Aisem Second yielding an average price of AED 15.83 million.

With such robust performance across various segments, the Dubai real estate market appears poised for continued growth, driven by strong demand, resilient investor confidence, and a promising lineup of new developments.