Dubai’s property market has kicked off the year with unprecedented growth, displaying strong buyer confidence and a marked increase in property transactions. According to Property Finder, a leading MENA real estate portal, the first month of the year saw a staggering 63% surge in total transaction values, reaching AED 72.4 billion—the highest recorded in Dubai’s history. This remarkable growth is largely attributed to a 90% increase in primary market activity while secondary market values also saw a noteworthy rise of 38%.

Unprecedented Demand in the Primary Market

The upward trajectory in primary market transactions is underscored by a notable rise in off-plan property sales, which soared by 128% compared to the previous year. Meanwhile, demand for ready properties also remains high but saw a significant year-on-year increase of 49%. Despite a slight decline of 1% in secondary market transaction volumes, the values have held firm, indicating a sustained interest from both investors and end-users in high-quality projects. The resilience of the secondary market can be attributed to the strong performance of ready properties, which accounted for nearly 89% of its total value.

Consumers Favor Apartment Living

As the year unfolds, apartment living continues to attract the majority of renters and buyers, indicating a shift towards practical and budget-friendly living arrangements. In January, searches for apartments made up 78% of all rental inquiries, while 59% of buyers opted for apartments over villas. The preference for one- and two-bedroom homes suggests that recent rent increases have nudged individuals, couples, and small families towards more compact housing options. This trend solidifies the notion that mid-sized, budget-conscious homes in well-connected areas are becoming the go-to choice for many.

Positive Market Dynamics and Buyer Engagement

The Dubai property market’s robust performance is mirrored in a 25% rise in new enquiries compared to December 2025, signaling renewed engagement from potential buyers. Most of these inquiries came from individuals earning upwards of AED 40,000 monthly, showcasing confidence among affluent buyers who are interested in premium properties. Meanwhile, those earning less tend to focus on apartments, reinforcing their importance as an accessible entry point into the market. With over 80% of mortgage-backed transactions directed towards apartments, this segment plays a pivotal role in facilitating access to real estate financing.

Mortgage Trends and Market Outlook

Dubai’s mortgage sector remains robust, with both volumes and values climbing 30% year-on-year. The easing of the average three-month EIBOR from 4.0% to 3.5% has further enhanced borrowing capacity, contributing to an optimistic outlook for the market. As property handovers are anticipated to surge, mortgage utilization is expected to significantly drive market activity. This positive sentiment is bolstered by resilient end-user demand and a favorable interest rate climate, which allows buyers to consider more high-value properties.

In conclusion, the first month of the year signals a historic start for Dubai’s real estate market, with buyer confidence driving robust demand across various segments. The continuous interest in off-plan projects alongside strong rental demand highlights the market’s maturity and adaptability to evolving buyer preferences. Property Finder’s insights illustrate not only the current success of the Dubai property landscape but also its potential for sustained growth, making it an attractive destination for buyers and investors alike.