Dubai Property Market Transactions Reach AED 46 Billion in January 2026, Surging 48%

Dubaief="/for-sale/uae/dubai">Dubai's Real Estate Market Surges with AED 46 Billion in Transactions

The first three weeks of January 2026 witnessed a remarkable surge in Dubai's real estate market, registering a transaction value of AED 46 billion. This figure marks a 48% increase in value compared to the same period last year, coupled with an 18% rise in transaction volume. The figures highlight a buoyant start to the year for Dubai's property sector, driven by robust demand for secondary market properties like townhouses and villas. These findings suggest a promising momentum heading into the first quarter of the year, as recorded by Engel & Völkers.

Secondary Market Properties in High Demand Despite Low Supply

In recent weeks, secondary ready properties have seen substantial interest, particularly townhouses and villas. Despite a limited supply, demand remains strong, suggesting that investors are keen on acquiring established dwellings that offer immediate rental potential or habitation. This trend may be attributed to a combination of lifestyle changes and investment strategies, as buyers seek steady rental yields in Dubai's competitive real estate landscape. A report from Arthur Mackenzy noted that offices are also tipped to outperform residential homes in the long run, hinting at a dynamic investment landscape.

Off-Plan Properties and Apartments Show Ample Supply

Contrary to the secondary market, the off-plan and apartment sectors in Dubai reflect a different narrative, with an abundance of supply meeting the market demands. This situation provides investors with diverse opportunities to explore various property segments. According to Economy Middle East, Dubai's real estate market is set to introduce 160,000 new units in 2026, with a significant portion belonging to this segment. This influx of new properties could stabilize pricing and offer more affordable entry points for investors looking to capitalize on the city's booming real estate market.

Regional Comparisons and Market Effects

Dubai's property market is showcasing a unique resilience and growth compared to regional counterparts. While other Gulf Cooperation Council (GCC) countries experience varied real estate dynamics, Dubai's proactive policies and investor-friendly regulations continue to attract global attention. This distinct positioning could potentially lead to higher transaction volumes and sustained market interest throughout 2026. In contrast, data from Limeswood indicates that property prices are beginning to stabilize, offering a more predictable investment environment compared to the volatility seen in other regional markets.

Stakeholders' Perspectives on Market Trends

According to Maya Tarek, Senior Analyst at RealEstateAbroad.com, the continued influx of investment in Dubai's real estate market underscores its attractiveness as a stable investment destination. "Investors are increasingly viewing Dubai as a secure market with promising returns, particularly in the luxury and secondary property segments," Tarek notes. The heightened interest from international buyers further fuels market confidence, with many investors projecting steady growth in property values over the coming years.

Future Implications: Projected Growth Trends

The early success in 2026 is a promising indicator for Dubai's real estate market, which seems set to maintain its growth trajectory throughout the year. Analysts at RealEstateAbroad.com project a continued increase in both transaction volume and value, potentially leading to record-breaking figures by year-end. As new property developments are completed and regulatory frameworks remain favorable, Dubai is well-positioned to attract further foreign investments. Stakeholders anticipate that future infrastructure projects and mega-developments will further bolster the city's appeal as a leading global real estate hub.