Dubai Real Estate Market Analysis – January 2026

Historic Start to Dubai’s Property Market in 2026

January 2026 marked one of the strongest months ever for the Dubai real estate market. According to Dubai Land Department (DLD), a total of 22,408 real estate transactions were recorded, with a combined value of AED 110.58 billion. This represents an impressive year-on-year growth of nearly 90%, highlighting strong investor confidence and continued international demand.

Growth in Both Volume and Value

Total property sales reached 17,401 transactions in January 2026. Transaction volume increased by more than 22%, while total sales value jumped by 62.7% compared to the previous year. This shows that buyers are not only more active but are also investing in higher-quality and higher-value properties. The average price per square foot in Dubai has now reached approximately AED 1,800.

Mortgage Market Records Exceptional Growth

Dubai’s mortgage market maintained its upward momentum in January 2026. The market recorded 4,160 mortgage-backed transactions, with total mortgage value climbing to AED 32.28 billion. This reflects a remarkable 188% year-on-year increase, signaling growing buyer confidence, improved financing options, and strong long-term expectations for the market.

Off-Plan Properties Dominate the Market

Off-plan real estate continues to be the driving force behind Dubai’s property market. In January 2026, 11,187 off-plan transactions were recorded, compared to 6,217 ready property sales. This trend confirms that investors and end-users are focused on future growth, capital appreciation, and flexible payment plans offered by new developments.

Apartments and Villas Lead Sales Activity

Apartments remained the most traded property type in January 2026. A total of 12,693 apartment units were sold, generating AED 26.4 billion in value. Villas also performed strongly, matching AED 26.4 billion in total sales value despite a slight dip in transaction count. This reflects sustained demand for premium villas and lifestyle-focused communities.

Top Performing Areas by Volume and Value

In terms of transaction volume, Al Yelayiss 1, Jumeirah Village Circle (JVC), and Business Bay ranked among the most active areas. When it comes to total sales value, Al Rowaiyah First and Me’Aisem Second led the market. This balance shows that Dubai’s growth spans both affordable and luxury segments.

Dubai Real Estate Outlook for 2026

With such a strong start to the year, Dubai’s real estate market is expected to maintain solid growth throughout 2026. Population growth, large-scale developments, investor-friendly regulations, and strong off-plan demand continue to support the market. Dubai remains one of the most secure, profitable, and globally competitive real estate markets for investors and homebuyers alike.

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