Dubai Real Estate Market Sales performance-January 2026
- Narcis Marian
- 5 days ago
- 5 min read
Updated: 2 days ago
The Dubai real estate sector has entered the 2026 fiscal year by establishing a historic baseline that redefines the parameters of market maturity and capital deployment.
The Dubai real estate market's remarkable performance in 2025
𝟗𝟏𝟕 𝐁𝐢𝐥 𝐀𝐄𝐃 (𝟐𝟒𝟗 𝐁𝐢𝐥 𝐔𝐒𝐃) total value of real estate transactions
𝟔𝟖𝟎 𝐁𝐢𝐥 𝐀𝐄𝐃 (𝟏𝟖𝟓 𝐁𝐢𝐥 𝐔𝐒𝐃) total sales transactions value
𝟐𝟗 % growth in sales transactions value vs 2024
𝟐𝟒 % growth in new investors
January 2026 has not merely followed the trajectory of previous years; it has effectively shattered existing records across nearly every critical metric, including total transaction value, sales volume, and the concentration of high-net-worth capital.
The scale of the upswing is most visible in the total value of transactions, which reached AED 107.96 Bil in January 2026, nearly doubling the AED 57.89 Bil recorded in the same period in 2025.
This doubling of transacted value within a single calendar month indicates a significant influx of global capital, much of which is being directed toward high-ticket off-plan developments and ultra-luxury ready assets.
Sales in January
January 2026 witnessed a record 17k of property transactions, with a staggering total value of 72 Bil AED (close to 20 Bil USD).
Data reflects a 22.2% year-on-year increase in sales volume for January 2026, yet the corresponding sales value surged by 62.6%. This divergence is a key indicator of price appreciation and a shift in the sales mix toward higher-value properties.
In January 2026, the average transaction value stood at approximately AED 4.15 Mil, a significant step up from the previous three years where the average hovered around AED 3Mil
The growth in mortgage activity also provides critical context. In January 2026, mortgage-backed transactions reached AED 32.28 billion, nearly tripling the AED 10.86 billion recorded in January 2025. This surge in financing activity, despite relatively stable interest rates, suggests that institutional buyers and end-users are increasingly leveraging debt to secure prime assets, signaling a high degree of confidence in the long-term capital appreciation of Dubai real estate.
Segmentation Analysis: Off-Plan vs. Secondary Markets
The structural composition of the Dubai market in January 2026 reveals a continued and intensifying preference for developer-led primary stock.
Off-plan property transactions have become the primary growth engine, capturing a majority of the capital deployment during the month.
Segment | Volume (Transactions) | Value (AED Billion) | Share of Total Value (%) |
Off-Plan (Primary) | 12,100 | 51.94 | 71.74% |
Ready (Secondary) | 5,361 | 20.49 | 28.26% |
Total Residential | 17,461 | 72.43 | 100.00% |
The dominance of off-plan properties in Dubai accounting for over 71% of total residential value is driven by several factors. Developers are offering increasingly attractive payment plans that allow investors to capitalize on future handovers while mitigating immediate liquidity requirements.
Off-plan sales have seen a remarkable 67 % surge in transactions values, accounting for 61% of the total transactions.
This growth is driven by attractive payment plans, innovative projects launches, and the promise of high returns on Dubai real estate investment through re-sale or capital appreciation upon handover.
This segment is increasingly characterized by end-user demand in established communities such as Dubai Marina, Downtown Dubai, and Business Bay.
In the secondary market, transaction volumes saw a more modest growth rate of $6.7\%$ year-on-year based on internal records.
While off-plan stock experienced an average price appreciation of 10% year-on-year for apartments for sale in Dubai, the secondary market remained relatively stable with a 6.2% annual increase. This stabilization in the ready market suggests that pricing is becoming more aligned with real demand and rental yields, rather than speculative anticipation.
Check out our research on key considerations for buying off-plan vs ready properties in Dubai.
Key areas such as Dubai Creek Harbour, Mohammed Bin Rashid City, and Dubai Hills have been hotspots for off-plan investments.
The percentage increase of overall transactions volume by asset class* in January:
Apartments 28.9 %
Villas and Townhouses -3.5 %
Commercial properties 126.5 %
Land plots 8.5 %
Apartments continue to dominate the transaction volume, accounting for approximately $73 of all sales. The liquidity in this segment is concentrated in the AED 1 million to AED 3 million price range, which attracts a broad base of international investors and first-time resident buyers. Notable demand was recorded in Jumeirah Village Circle (JVC) and Business Bay, where high rental yields (often between 8% and 9.5%) provide a compelling investment case.
Dubai offers a blend of benefits, for foreign investors looking to enter the property market, such as:
Zero personal income tax or capital gains tax, or withholding tax
lowest corporate income tax rate of 9%
100% foreign business ownership
100% repatriation of capital investment and total profit earned
10-year investor Golden Visa
Investor-friendly policies providing foreign investment protection
One of the world’s top tourist centers
Latest news and initiatives
The biggest news of January that made headlines around media, was the announcement from Dubai Land Department
Dubai's economy achieved a GDP of AED 355 Bil in the first nine months of 2025, with a 4.7% growth. Growth is being generated across a diverse range of sectors, spanning trade and retail, financial services, real estate and construction, information and communications, and the visitor economy, while fast-rising segments like healthcare.
The Real Estate sector grew 6.7% during the first nine months of 2025, contributing 8.2% to GDP, with a total value of AED29.1 billion.
Dubai Land Department unveils agenda for PropTech Connect Middle East 2026 addressing key themes, including:
the role of technology and data in reshaping development, investment, and asset management ecosystems
shifts in capital flows and the evolution of investment models in emerging markets
the role of artificial intelligence in enhancing real estate portfolio performance and advancing smart cities and large-scale developments
the integration of sustainability into long-term urban planning
advanced regulatory frameworks as enablers of real estate innovation
real estate tokenisation, blockchain technologies and the expansion of access to capital
Dubai’s First-Time Home Buyer Program developed jointly by the Dubai Department of Economy and Tourism (DET) and DLD to make home ownership more accessible for residents of all nationalities and income levels, helped over 2,000 residents become homeowners in 6 months since launch
Ministry of Finance launches ‘Federal Government Real Estate Assets Platform’ a centralized digital platform designed to document and update data on federal real estate assets, a strategic tool that enables federal entities to efficiently register, monitor, and manage their real estate assets through a structured and methodical approach
Conclusion
The performance of the Dubai real estate market in January 2026 indicates a sector that has achieved a new level of global prominence. The record AED 72.19 billion in sales value is a reflection of deep-seated demand from a growing and affluent resident population. The transition toward an end-user-driven market is evidenced by the high volume of cash transactions and the dominance of the off-plan segment, which allows buyers to secure homes in strategically planned communities.
Source: Dubai Land Department; DXB Interact, Dubai Media Office
