The residential real estate markets in Dubai and Abu Dhabi are poised for remarkable growth as they transition into 2026. Following a record year in 2025, both emirates are now guided by a stronger sense of direction and renewed confidence. With Dubai witnessing an unprecedented 270,000 transactions valued at approximately AED917 billion ($249.7 billion)—a 20% increase compared to the previous year—the overall landscape reflects not just growth but resilience and sustainability.

Trends Defining Dubai’s Real Estate Market

According to the latest report from Property Finder, there are several prominent trends shaping Dubai’s residential property market. This includes a noticeable shift in buyer preferences and behaviors, alongside evolving market dynamics.

Increasing Preference for Home Ownership

Recent data highlights a growing trend among residents toward ownership rather than renting. A survey by Property Finder reveals that 70% of potential buyers plan to purchase a home within the next six months, indicating strong buyer intent. Alongside this shift, sales listings on the platform saw a 49% increase in 2025, while rental listings declined, underscoring the commitment to home ownership. First-time buyers are playing a crucial role in this movement, aided by policies like ownership-linked visas and initiatives aimed at facilitating entry into the housing market.

Larger, Premium Homes Gaining Traction

The market is also witnessing a preference for larger and more premium properties. In 2025, entry-level homes priced under AED1,000 per square foot accounted for only 8% of transactions, compared to 14% in the previous year. Moreover, buyers are devoting a higher percentage of their income to mortgage payments, suggesting significant confidence in sustained growth. Properties priced over AED2,500 per square foot constituted 20% of the market, up from 15% in 2024, fueled by an influx of high-net-worth individuals and a remarkable $63 billion in foreign wealth.

Shifts in Property Types

While apartments dominated the transaction volume, making up 93% of all residential deals in 2025, villas have become increasingly desirable despite a decrease in transactions. Villa prices soared by 14%, contrasting with a modest 6% rise in apartment prices. A significant portion of villa transactions—around 72%—fell within the mid-market range, revealing a consumer preference for space and privacy.

Emerging Trends in Abu Dhabi’s Real Estate Landscape

Abu Dhabi’s residential market is also witnessing key trends that reflect its own maturation. As the demand for homeownership rises, several noteworthy patterns have emerged.

Homeownership Becoming the Norm

Similar to Dubai, Abu Dhabi is experiencing a substantial shift toward homeownership. Sales listings accounted for 39% of platform impressions in 2025, a significant increase from 26% the previous year. This trend indicates a growing desire among residents to establish long-term roots in the city.

Increased Demand for Apartments

Apartments have garnered an impressive share of the market, constituting 72% of residential transactions according to the latest data. This can be attributed to a healthy supply of apartments that offer a wider variety of choices in terms of location and pricing, making them the go-to option for many buyers.

Upsizing Trends Among Villa Buyers

In the villa segment, there is a marked trend toward larger homes. Properties with four or more bedrooms made up 62% of villa transactions in 2025, up from 38% in 2022. This indicates a growing demand particularly among families looking for long-term settlement options rather than transient investments.

As both Dubai and Abu Dhabi’s markets evolve, understanding these trends will be crucial for making informed investment decisions in the ever-growing landscape of residential real estate.