Dubai’s property market has showcased impressive resilience, beginning 2026 on a high note. This bustling real estate sector saw a remarkable month in January, characterized by a staggering AED 72.4 billion in transaction value—a 63% surge from the previous year. This growth was primarily fueled by an astounding 90% increase in the primary market, indicating a strong appetite for new properties among buyers.

Consistent Demand Amidst Challenges

According to comprehensive data from Property Finder, new buyer inquiries surged over 25% compared to December 2025. A significant portion of these inquiries, more than two-thirds, originated from individuals earning over AED 40,000 monthly. Remarkably, over 85% of transactions were driven by owner-occupiers, signifying a robust underlying demand. February continued this trajectory, with transaction value experiencing a 19% year-on-year increase. The commercial sector stood out with a hefty 118% growth, while Mortgage Finder revealed that a noteworthy 88% of clients aimed to buy properties for personal use. The overall market landscape remained diverse and grounded in substantial demand.

However, the regional conflict in late February presented challenges that tempered the previously robust momentum. Property Finder’s analysis from March revealed an 8% decrease in transaction value year-on-year and a notable 19% drop compared to the previous month. The secondary market suffered even more, contracting by 34% year-on-year as buyers sought immediate certainty amidst uncertain conditions. The research indicated that around 10% of clients canceled their contracts, while another 20% opted to pause their plans. Additionally, several major lenders modified their loan-to-value ratios, reducing them from 80% to 70%, creating friction in the market. Despite these setbacks, the primary market not only held firm but grew by 18% year on year, with off-plan primary properties seeing a remarkable 20% increase, signaling continued commitment from investors with a long-term outlook.

April’s Resurgence and Recovery Signals

April painted a more optimistic picture, with the total mortgage value registered with the Dubai Land Department reaching AED 9.02 billion. Rental contract volumes also experienced a solid 16% year-on-year growth, as tenants who had previously hesitated began moving again. Notably, lenders that had initially tightened their lending criteria started reverting to pre-conflict policies, indicating a resurgence of institutional confidence in the market.

Cherif Sleiman, Chief Revenue Officer at Property Finder, emphasized the importance of data in understanding market dynamics. “Every market faces moments of hesitation, what matters is what the data shows when that hesitation lifts,” he stated. The statistics from the previous months paint a compelling narrative. After the pause in March, villa searches constituted 46% of all sale inquiries—an all-time high for 2026. Mortgage activities reached their peak of AED 9.02 billion, while investor purchase intent soared nearly four times compared to the previous month, suggesting that the market needed time rather than a rescue.

Structural Improvements Towards a Bright Future

The current market environment is also structurally enhanced compared to the previous year. The Dubai Land Department eliminated minimum property value thresholds for the two-year investor visa and relaxed the upfront requirements for the ten-year Golden Visa, making it easier for investors to enter the market. These conditions lay the groundwork for a steady and data-driven recovery, attracting potential investors who are looking for both stability and growth.

In summary, Dubai’s property market continues to evolve, demonstrating resilience through turbulent times and showcasing significant recovery potential. With a solid foundation of genuine demand and supportive government policies, Dubai remains an attractive destination for real estate investment.