Dubai’s residential property market recorded 44,493 transactions in the first quarter of 2026, a rise of 4 per cent year-on-year, with total transaction value climbing 21 per cent to AED 139.2 billion, according to the Q1 2026 Dubai Residential Market Report published by Betterhomes.
The figures point to a market in which activity continues but decision-making has become measured, with buyers placing greater emphasis on pricing, quality and long-term value.
Off-plan dominates as secondary narket retreats
Off-plan properties remained the principal driver of market activity, accounting for 68 per cent of total transactions. Off-plan volumes rose 20 per cent year-on-year, while off-plan transaction value increased 35 per cent. By contrast, secondary market transactions fell 19 per cent year-on-year, reflecting a shift in sensitivity to pricing in the ready property segment.
Quarter-on-quarter, overall transaction volumes declined 17 per cent, a movement Betterhomes attributed to a slowdown in decision-making during March rather than a weakening of fundamental demand.
“Given the regional developments in March, some moderation in decision-making was expected. What matters is that the underlying data still points to a resilient market. Transactions were up 4% year-on-year, while total value increased 21% to AED 139.2 billion. Activity has become more measured, but capital continues to move, which points to a market becoming more disciplined rather than losing momentum,” Louis Harding, CEO of betterhomes said in a statement.
Buyer behaviour shifts toward larger homes
Enquiries declined 18 per cent year-on-year during the quarter, yet the composition of that demand shifted. Villa and townhouse enquiries rose 15 per cent, while apartment enquiries fell 31 per cent, pointing to a preference for properties of greater scale and value.
Investors accounted for 57 per cent of all transactions in Q1 2026, up from 50 per cent in the same period a year earlier.
Transactions above AED 15 million rose 43 per cent year-on-year to 1,214 deals. The segment was supported by an 84 per cent increase in off-plan prime transactions, making it the area of the market with the most notable expansion during the quarter.
Leasing market faces pressure despite demand
The leasing market grew more competitive during the period. Enquiries rose 7 per cent year-on-year, but transactions fell 5 per cent year-on-year and 26 per cent quarter-on-quarter, as an increase in supply and more considered tenant behaviour slowed conversion rates.
New-let apartment prices across prime communities declined between 10 per cent and 20 per cent year-on-year, creating a disparity between the rents paid by existing tenants and those being negotiated by incoming tenants.
March saw the sharpest contraction in enquiries, which fell more than 40 per cent month-on-month, driven by seasonal factors and developments across the region.
Betterhomes said performance across both sales and leasing is increasingly shaped by pricing discipline, product quality and the strength of positioning, rather than broad-based momentum.
The firm described the Dubai market as one that is maturing rather than weakening, with the data from Q1 2026 reflecting a shift toward selectivity on the part of both buyers and tenants rather than a withdrawal from the market altogether.
