Overview
The Dubai real estate market 2026 continued to demonstrate strong momentum in the final week of February. Week 4 recorded 4,337 property sales transactions with a total value of AED 13.98 billion, reaffirming sustained investor confidence across residential, commercial, and land segments.
Residential activity dominated market movement, contributing 4,114 transactions worth AED 11.62 billion. At the same time, mortgage activity expanded significantly, the commercial market recorded solid absorption levels, and the rental segment revealed tightening supply conditions — a factor that is becoming increasingly important for both investors and residents.
This Dubai property market update 2026 is based on transaction-level data across the residential, commercial, and rental sectors, offering a comprehensive interpretation of the current real estate trends Dubai 2026.
Week 4 Key Market Indicators
- Total Sales Transactions: 4,337
- Total Sales Value: AED 13.98 Billion
- Average Market Price: AED 1,958.6 per sqft
- Total Mortgage Transactions: 1,044
- Total Mortgage Value: AED 5.92 Billion
- Total Rental Contracts: 21,779
- Total Rental Value: AED 1.98 Billion
- Off-Plan Market Share: 68% of total sales
These figures reinforce the scale and resilience of the Dubai real estate market 2026, which continues to attract both domestic and international capital.
Overall Market Activity
Across residential, commercial, and land categories, Dubai recorded 4,337 transactions valued at AED 13.98 billion, with the overall market average reaching AED 1,958.6 per sqft.
The distribution between off-plan and ready properties highlights the evolving dynamics within the Dubai property market update 2026.
Sales by Property Type
Off-Plan Properties
- 2,960 transactions
- AED 9.19 billion total value
- Average price: AED 2,087.8 per sqft
Ready Properties
- 1,377 transactions
- AED 4.79 billion total value
- Average price: AED 1,680.9 per sqft
Off-plan developments accounted for 68% of total transaction volume and traded at approximately 24% higher prices per square foot compared to ready properties. This pricing gap reflects investor confidence in Dubai's development pipeline and expectations of capital appreciation between launch and project completion.
At the same time, the ready property market continues to remain active, recording nearly AED 4.79 billion in transactions within a single week, demonstrating sustained demand for completed assets.
Residential Market Performance
The residential segment remained the primary driver of the Dubai real estate market 2026, recording 4,114 transactions worth AED 11.62 billion at an average of AED 1,934.4 per sqft.
This level of residential activity highlights the continued expansion of Dubai’s population, increasing housing demand, and the city's growing appeal among global investors.
Mortgage Market Activity
Mortgage transactions emerged as one of the most important indicators of market depth during Week 4. The residential mortgage market recorded 928 transactions totaling AED 2.20 billion, with an average financed price of AED 1,082.5 per sqft.
Off-Plan Mortgage Activity
- 7 transactions
- AED 104.86 million value
- Average: AED 1,089.8 per sqft
Ready Property Mortgages
- 921 transactions
- AED 2.09 billion value
- Average: AED 1,082.4 per sqft
Within the ready property segment:
- Apartment mortgages: 629 transactions worth AED 770.5 million
- Villa mortgages: 270 transactions worth AED 1.25 billion
- Serviced apartment mortgages: 4 transactions worth AED 11.6 million
- Villa plot mortgages: 18 transactions worth AED 63.3 million
The villa segment stands out in particular. 270 mortgage-backed villa transactions totaling AED 1.25 billion indicate strong lender confidence in villa valuations. With an average financed value of AED 1,144.7 per sqft, banks appear comfortable supporting purchases at current price levels — a positive signal for overall price stability.
Across the broader market, including commercial assets, the mortgage sector recorded 1,044 transactions totaling AED 5.92 billion, demonstrating expanding access to financing within the Dubai real estate market 2026.
Commercial Property Market
The commercial real estate sector also recorded meaningful activity, with 155 transactions totaling AED 944.6 million and an overall average price of AED 3,137.9 per sqft.
Commercial Sales Breakdown
Off-Plan Commercial
- 87 transactions
- AED 757.2 million
- Average price: AED 3,854.3 per sqft
Ready Commercial
- 68 transactions
- AED 187.4 million
- Average price: AED 2,221.2 per sqft
The price differential between off-plan and ready commercial properties reached 74%, reflecting strong demand for modern office spaces and newly developed business environments.
As businesses continue expanding in Dubai, many are prioritizing high-quality commercial assets located in established business corridors.
Rental Market Overview
The rental market provided one of the clearest signals of supply tightness within the current real estate trends Dubai 2026.
Week 4 recorded 21,779 rental contracts across the city, generating AED 1.98 billion in annual rental value, with an average of AED 228.5 per sqft per year.
Overall Rental Activity
New Contracts
- 9,597 contracts
- AED 890.3 million
- Average: AED 194 per sqft annually
Renewed Contracts
- 12,182 contracts
- AED 1.09 billion
- Average: AED 255.8 per sqft annually
Renewals exceeded new contracts, indicating that tenants are increasingly choosing to remain in existing properties rather than relocate in a competitive rental market.
In the residential segment, the renewal premium is even more pronounced.
Residential Rental Contracts
New Residential Leases
- 5,776 contracts worth AED 618.7 million
- Apartments: 5,114 contracts
- Villas: 547 contracts
Renewed Residential Leases
- 8,766 contracts worth AED 695.7 million
- Apartments: 7,990 contracts
- Villas: 749 contracts
One of the most striking figures comes from the villa market. Villa lease renewals averaged AED 1,075.6 per sqft annually, compared to AED 463.2 per sqft for new leases, reflecting strong pricing power for landlords in established villa communities.
For property investors, this dynamic highlights the increasing attractiveness of holding completed villa assets for long-term rental income.
Strategic Buying Considerations
Based on the Dubai property market update 2026, several buyer segments appear particularly well positioned.
Investors Should Consider Acting If They Are:
- International investors seeking AED-denominated assets with long-term capital appreciation potential
- Buyers evaluating off-plan apartments in emerging locations such as JVC, Dubai South, Dubailand, and Dubai Islands
- Long-term residents reconsidering renting versus buying as rental renewals become increasingly expensive
- Business owners looking to secure Grade-A commercial space before further price increases
Investors Should Proceed Carefully If:
- Entering newly developing communities without a medium-term holding strategy
- Relying solely on headline rental yields without detailed unit-level analysis
- Purchasing without first confirming mortgage eligibility or financing conditions
Before committing to any investment, buyers should evaluate developer delivery track records, supply pipelines within specific communities, net rental yield after service charges, and mortgage pre-approval conditions.
Dubai Real Estate Market 2026 Outlook
The Week 4 data highlights a market operating across multiple price segments simultaneously — from entry-level apartments to premium waterfront developments. This diversity is a positive sign for the long-term sustainability of the Dubai real estate market 2026.
Several directional signals are emerging as we move toward the second quarter of the year:
- The mortgage market is expanding rapidly, helping broaden the buyer base
- Limited supply of ready villas in established communities is pushing demand toward off-plan alternatives
- Emerging waterfront developments such as Dubai Islands and Dubai Maritime City are entering mainstream investor consideration
- Businesses are increasingly prioritizing modern office spaces, sustaining demand for Grade-A commercial inventory
- Rising rental renewal prices are gradually strengthening the rent-versus-buy argument for long-term residents
These factors collectively shape the Dubai real estate market 2026 outlook, pointing toward continued growth supported by population expansion, international investment flows, and Dubai’s position as a global lifestyle destination.
Final Thoughts from HouzzHunt
The data from Week 4 of February shows a market operating with confidence and depth. Transaction volumes remain strong, capital flows continue to increase, financing activity is expanding, and rental dynamics are increasingly favoring property ownership.
At HouzzHunt, our role is to convert complex market intelligence into strategic decision-making for investors and homeowners alike. By combining data analysis with personalised advisory, we help clients navigate the Dubai real estate market 2026 with clarity and confidence.
Because in a market moving at this pace, the difference between a good decision and the right one often comes down to informed insight.
