As summer draws to a close, the UAE property market continues to progress with confidence. Following a strong first half of 2026, August has brought a more measured pace of activity, reflecting a market that is maturing steadily while maintaining its strength and appeal.
A Market Supported by Strong Demand
The strength of the UAE’s property market is reflected in the latest official figures. The Dubai Land Department reported AED 252 billion in real estate transactions in Q1 2026, representing a 31% year-on-year increase in value and a 6% rise in volume, with 718,160 real estate procedures recorded during the quarter.
Investor participation also remained strong, with 57,744 investments worth AED 173 billion registered, a 22% increase, while the investor base reached 48,448, including 29,312 new investors, up 14% year-on-year.
Together, these figures point to sustained market activity and continued confidence among investors, reinforcing the UAE’s position as an attractive and resilient real estate destination.
Dubai’s Market Enters a New Rhythm
Dubai’s strong momentum from H1 2026 has carried steadily into the second half of the year. Weekly sales values in early August ranged from AED 6.6 billion to AED 7.7 billion, while transaction volumes remained between approximately 3,040 and 3,565 deals per week.
Average prices held close to AED 1,700 per square foot, with off-plan property continuing to lead in transaction volumes. Together, these figures point to a market settling into a more measured and sustainable rhythm, following two exceptional years of rapid expansion.
Dubai’s Appeal Continues to Draw New Residents
The fundamentals supporting Dubai’s continued resilience remain strong. The city’s population surpassed 4.74 million in 2026, with more than 161,000 new residents added since January, while its daytime population reaches approximately 6.39 million as workers, visitors and students move through the city each day.
Rental demand has remained equally robust, with tenancy contracts rising 1.9% year on year and more than 214,445 agreements registered during the first seven months of the year. Together, these figures reflect the depth of demand supporting Dubai’s residential market and the city’s continued appeal as a place to live, work and invest.
A Growing Pipeline of New Homes
Dubai completed 104 real estate projects worth AED 111 billion in H1 2026, up from 75 projects valued at AED 73 billion during the same period last year.
The increase highlights a robust development pipeline and the steady delivery of new homes across the market, supporting Dubai’s continued growth and evolving residential landscape.
Abu Dhabi’s Market Gains Momentum
Abu Dhabi has emerged as one of the region’s strongest real estate performers this year, with momentum continuing to build across the market.
Transaction values rose 112% year on year to AED 117 billion in H1 2026, while foreign direct investment climbed by an impressive 309%.
Residential prices also increased by approximately 21.6% year on year in Q2 2026, with apartment values rising 24.4%. Together, these figures highlight Abu Dhabi’s growing appeal among international and long-term investors.
Dubai’s Ultra-luxury Market Continues to Attract Global Buyers
At the top end of the market, confidence remains strong. High-net-worth buyers and international investors continue to value privacy, prime locations and long-term potential, with notable transactions including a palace lease in Emirates Hills and a AED 34 million sale in Palm Jebel Ali.
These deals underscore Dubai’s enduring appeal as one of the world’s premier destinations for ultra-luxury real estate.
A Market Built for the Long Term
With yields holding at a healthy 6.58%, a favourable tax environment for property owners, and population growth continuing to support housing demand, the outlook for Dubai and Abu Dhabi remains encouraging. The fundamentals point to markets with continued depth, resilience and long-term appeal.
At Prima Luxury, we combine market insight with personalized guidance to help investors and homebuyers discover the right opportunities across the UAE’s most sought-after addresses.
Sources
Dubai Land Department, Official Q1 2026 transaction value, volume and investor growth figures
The Week, Rental contract growth and tenancy figures for 2026
The Week, — Dubai project completions and Abu Dhabi transaction and FDI surge, sourced from WAM
Emirates 24|7, — Bayut data on ultra-luxury demand and notable H1 2026 deals
Cresco Real Estate, H1 2026 transaction totals, yields and population growth figures
Autograph Realtors, Weekly sales, volume and pricing data for early August 2026
K Estates, Abu Dhabi price growth and Dubai population figures