Dubai’s real estate market has showcased impressive resilience during the first half of 2026, recording nearly AED420 billion in transactions, as reported by the Dubai Land Department. This figure includes around AED286 billion from property sales, reflecting a decline of just 3% compared to the AED431 billion reported in H1 2025.

Performance Overview of H1 2026

During the first six months of the year, the market witnessed a significant volume of activity, with almost 113,000 transactions across various categories. Among these, nearly 86,000 transactions were property sales, while mortgage registrations added approximately AED102 billion to the market metrics. This substantial level of financing indicates the critical role mortgages continue to play in real estate transactions. Notably, the first quarter laid a robust foundation for the year, with AED252 billion recorded from 60,303 real estate transactions between January and March, marking a 31% increase in value and a 6% rise in transaction volume compared to the previous year.

Market Dynamics: Off-Plan vs. Completed Properties

In terms of residential sales, off-plan properties continued to dominate the market, accounting for approximately 58,800 transactions valued at close to AED140 billion. Meanwhile, sales of completed homes came in at around 24,700 transactions worth nearly AED106 billion. While off-plan properties represented about 70% of residential sales in terms of volume, they accounted for roughly 57% in terms of value. This indicates that while buyers are enthusiastic about investing in new developments, there remains strong interest in move-in ready homes, suggesting diverse buyer priorities regarding investment and immediate housing needs.

New Supply and Population Growth Driving Demand

The housing supply also saw accelerated progress, with 24,537 new residential units completed in the first half of 2026, up 36% from the same period last year. This surge in delivery can be attributed to ongoing urban development efforts, with the completion of 104 projects valued at more than AED111 billion. As Dubai’s population continues to grow—reportedly reaching 4.58 million by the end of 2025—housing demand remains robust. Government statistics show an increase of 332,000 residents, which further fuels the need for both rental properties and owned homes.

Looking Ahead: What to Expect in the Second Half

As Dubai’s real estate sector moves forward, plans are in place aiming for a 70% increase in transaction volumes by 2033, with a target market valuation of AED1 trillion. Factors such as transparency, sustainability, and broader access to property ownership are being emphasized. For prospective buyers, assessing the unique attributes of individual properties will remain crucial. The transition into the second half of 2026 promises to reveal how the growing selection of completed homes will be occupied, leased, or resold, highlighting shifts in population and residential preferences as Dubai continues to evolve into a global city.

In summary, the first half of 2026 indicated sustained momentum in Dubai’s real estate sector, characterized by an increased volume of completed housing alongside significant financial activity. This dynamic, coupled with ongoing population growth, suggests an encouraging outlook for the remainder of the year, as the residential market adapits to meet the changing needs and preferences of existing and new residents.