Dubai’s real estate market has demonstrated remarkable resilience and growth, aligning with trends that cater to both high-end buyers and those interested in affordable housing. As we transition into 2026, the strength of the property sector sets an optimistic tone for the upcoming year.

Record-Breaking Sales Performance

According to Property Finder, a leading property portal in the MENA region, December 2025 marked a significant milestone with record sales that contributed to an unparalleled overall performance for the year. The total sales figure for the fourth quarter of 2025 soared to AED 187.47 billion, with December alone responsible for AED 64 billion in transactions. This success was bolstered by a substantial year-on-year increase in median prices, which rose by 8.4% compared to 2024. The gains in sales value outpaced transaction volume, allowing the market to confidently look ahead to 2026.

Thriving Residential Areas

December saw several prominent neighbourhoods continue to drive the real estate market. Areas such as Palm Jumeirah, Dubai Marina, and Downtown Dubai accounted for a major portion of the transaction value. These locations benefit from high demand from international investors, limited housing supply, and premium property prices. Additionally, well-designed developments in various regions add considerable value to the market, attracting a diverse set of buyers. Business Bay remains a strong option for investors due to its central location and extensive amenities, while Dubai Hills Estate offers appeal through its balanced demand for both villas and apartments.

Mid-range communities are also thriving, particularly Jumeirah Village Circle, where affordability draws many buyers, especially in the competitive off-plan sector. The sustainable growth of these areas contributes to a comprehensive market that accommodates different buyer preferences and budgets.

Apartments in Demand

The rental sector is witnessing a considerable preference for apartments, with data indicating that an impressive 80% of rental searches were for these types of properties, compared to just 20% for villas and townhouses. As rental prices rose during 2025, many individuals and smaller families began gravitating toward smaller, more affordable living spaces. Among apartment searches, there’s an evident inclination towards studio, one-bedroom, and two-bedroom units, which comprise 85% of the total searches.

In sales inquiries, apartments dominate the landscape, accounting for 61% of searches, while villas hold only 39%. This shift signals a growing trend where buyers increasingly prefer smaller, budget-conscious residences.

Positive Market Outlook

Cherif Sleiman, Property Finder’s Chief Revenue Officer, emphasized that December 2025 was a highly successful time for Dubai’s real estate market. The strong transaction values and robust price per square foot underline a demand-driven market that is ready for further growth in 2026. This momentum arises from long-term structural factors rather than fleeting speculative activities, providing a broad base for buyers, sellers, and investors.

Overall, the outlook for Dubai’s real estate sector is promising. As it continues to evolve, opportunities abound for various market participants. Whether you are seeking an upscale property or a budget-friendly apartment, the Dubai property market has something to offer for everyone.