Dubai real estate hits all-time peak - Setting a new benchmark for 2026

Property market updates | 13.01.2026 | Benham and Reeves UAE

2025 marked a historic high in the Dubai real estate market. As per the latest data from the Dubai Land Department. Property sales just reached over Dh 682.49 billion, showcasing the highest annual figure in the emirate's history.This marks a string of exceptional growth into its fifth consecutive.

This makes it stand as one of the strongest yearly performances on record. Be it apartments, villas, townhouses or plots, all of them showed a strong demand, showcasing and positioning Dubai as one of the world's most evolving and resilient real estate markets.

​As per the latest market scenario, investors' confidence, population growth and sustained rental pressure are going to be the prime drivers shaping positive expectations for 2026. And this definitely means a robust and good start to 2026. So, have a look at what further you can expect that might just boost your confidence:

Market performance: Transaction activity remains extensively optimistic and strong

​Dubai's real estate landscape closed 2025 with a strong scenario, both in terms of value and volume:​

• Property sales value climbed approximately to 30.6% year-on-year to Dh682.49 billion, compared with Dh522.36 billion in 2024.
• Sales transactions rose to 214,942 deals, up nearly 18.8% from last year.
• Mortgage transactions reached nearly Dh179.26 billion across more than 50,900 deals, while gift transactions accumulated around Dh57.25 billion.

​The overall universe of real estate transactions, including all categories of sales and other deals, rose to Dh919 billion across 275,442 transactions, a growth of roughly 20.8% in value and 21.8% in volume.​

​Moreover, the last quarter of 2025 recorded the highest-ever quarterly sales, exceeding Dh187.47 billion, driven by a run of record monthly results, including Dh64.82 billion in December alone, a 52% year-on-year jump.​

Which key communities have shown a good performance?

• Areas like Jumeirah Village Circle (JVC), Business Bay, Dubai Marina, Downtown Dubai and Dubai Hills Estate have shown a high-transactional sales momentum. All of which has recorded a steady monthly price growth.
• Prime waterfront and lifestyle destinations, including Palm Jumeirah, Bluewaters Island, and Dubai Creek Harbour, have continued to command premium price-per-square-foot levels.
• ​Also, the segments encompassing villas and townhouses, and communities including Arabian Ranches, Tilal, Al Ghaf, The Valley and Jumeirah Golf Estates, posted continuous annual gains, supported by family-driven demand and constrained ready inventory.

​Residential sales trends and segment highlights

• Residential sales remained a very dominant factor in transaction volumes and overall value, driven by strong interest from both domestic and global buyers.
• Mid-range housing options continued to attract a broad base of buyers, while premium and lifestyle segments maintained their luxurious positioning.
• Villas and townhouses experienced a steady upward pressure, especially where ready inventory remained constrained and family-driven demand was strong.

Impressive rental yields continued to attract investors

Dubai's leasing market has been quite active over the years, clearly demonstrating the city's investment appeal. The average gross rental yield stood at around 6.8%, backed by rising rents across both the apartment and villa segments. The majority of new and renewed leases were for apartments, with strong absorption in JVC, Business Bay, and Dubai Marina.

​Whereas, Villa rents continued to climb in popular and established emerging communities, particularly where limited new supply met strong tenant demand.​

Outlook: Will 2026 carry the same momentum?​

As the year draws to an end​, the annual performance is already reinforcing Dubai's strong and robust market position. With record transaction values, resilient pricing and a thriving and growing rental market, the market shows a positive outlook to look forward to.​​

While price growth is becoming more calculative in certain areas, demand remains robust, setting the stage for continued stability and selective growth as Dubai moves into 2026.​

​And if you're looking for more such UAE property market updates, Benham and Reeves has the right insights and clear guidance on how to proceed. Contact us to know more!​