Dubai Property Sales Reach Dh139 Billion in Q1 2026

May 14, 2026

69 min

May 14, 2026 07:31

Dubai home sales top Dh139 billion while rent growth starts to cool

## Surge in Off-Plan Sales

Dubai's real estate market saw a significant boost in the first quarter of 2026, with property sales totaling Dh139.1 billion. This increase was largely driven by off-plan transactions, which made up 73% of all residential sales. Over 32,300 off-plan units were sold, marking a 35% rise compared to the same period in 2025.

## Cooling Rent Growth

Despite the surge in sales, rent growth has started to slow, reaching its weakest pace since 2022. Average residential prices increased by 9.6% year-on-year, but the rate of growth has decelerated. Rents rose by 10.2% annually, yet this was the slowest growth in three years.

## Market Dynamics

The market is experiencing mixed conditions, with geopolitical tensions and a rising supply pipeline contributing to a more balanced phase. Developers delivered 12,900 residential units in Q1, the highest quarterly total in three years. However, new project launches have decreased significantly.

## Luxury Market Remains Strong

Demand for luxury properties continues to be robust. Homes priced between Dh20 million and Dh50 million saw a 25% increase in transactions, while ultra-luxury homes above Dh50 million recorded a 79% rise in sales.

## Future Outlook

The outlook for the rest of the year depends on market stabilization and demand from end-users and investors. While the supply pipeline is growing, the number of actual handovers may vary, potentially affecting future market dynamics.

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