How Dubai Real Estate Market hits new highs

Dubai’s property market has opened the year with unprecedented momentum, recording its strongest January performance on record as transaction values, sales volumes and investor demand surged across both primary and secondary segments.

Data released by the Dubai Land Department (DLD) show that total real estate transactions in January reached Dh107.96 billion, nearly double that of Dh57.89 billion recorded in the same month last year. The year-on-year increase of 86.5 per cent underscores the scale of activity at the start of the year and reflects continued confidence from local, regional and international buyers.

The total number of real estate transactions climbed 17.27 per cent to 21,884, compared with 18,661 transactions in January last year, reinforcing Dubai’s position as one of the world’s most active property markets.

Sales activity accounted for the largest share of market value, reaching Dh70.05 billion during the month — the highest monthly sales value ever recorded in the emirate. This represents 59.13 per cent increase compared with January last year. A total of 16,858 sales deals were completed during the month, up 20.38 per cent from 14,003 transactions a year earlier.

Mortgage activity also remained strong, with Dh32.04 billion registered across 4,160 transactions, while property gifts amounted to Dh5.87 billion through 826 transactions, according to DLD data.

Industry data from Property Finder, the MENA region’s leading property portal, further highlights the strength of Dubai’s real estate market at the start of the year. According to the portal, Dubai recorded a total transaction value increase of 63 per cent year on year in January, reaching Dh72.4 billion — the highest level ever achieved for the month.

The surge in value was largely driven by 90 per cent increase in the primary market, supported by a rise of 38 per cent in secondary market values. In terms of total transaction volumes, Property Finder recorded 23 per cent year-on-year increase, fuelled by 42 per cent rise in primary transaction volumes, which offset a marginal one per cent decline in secondary market volumes.

The data point to a market increasingly driven by off-plan activity, while maintaining resilience in the ready property segment.

January figures show that off-plan demand in the primary market continued to strengthen, with values rising 128 per cent year on year, compared with a still-significant 49 per cent increase in ready property values. The sharp rise in off-plan values reflects strong investor and end-user confidence in upcoming developments, particularly higher-quality projects launched by major developers.

The secondary market, meanwhile, demonstrated notable resilience, with a total year-on-year value increase of 38 per cent, even as transaction volumes edged lower by one per cent. Within the secondary segment, the off-plan component declined by 9 per cent, while ready properties delivered consistent value growth, supporting overall market stability.

The divergence highlights a shift in buyer preference towards completed units in the resale market, while off-plan demand remains concentrated within the primary segment.

By sales value, Al Rowaiyah 1 emerged as the strongest-performing area in January, recording Dh6.31 billion in transactions. Meydan 2 (Me’aisem 2) followed closely with Dh6.04 billion, while Al Yalayis 1 recorded Dh4.6 billion.

Business Bay ranked fourth with Dh3.51 billion in sales, reflecting continued interest in centrally located, mixed-use communities. Sheikh Mohammed Bin Rashid Gardens followed with Dh3.26 billion.

Other notable areas included Umm Suqeim First, Palm Jebel Ali, Dubai Investment Park Second and Palm Deira, each recording sales exceeding Dh1.7 billion, underscoring broad-based demand across established and emerging locations.

The robust start to the year follows a landmark performance in 2025, when Dubai’s real estate market closed with record-breaking annual sales, extending its exceptional growth streak for a fifth consecutive year.

According to Dubai Land Department data, property sales in the emirate surged 30.64 per cent year on year to more than Dh682.49 billion in 2025, compared with Dh522.36 billion in 2024.

The total number of sales transactions reached 214,912 between January and the end of December 2025, up from 180,860 transactions in the same period a year earlier, representing growth of 18.82 per cent, Emarat Al Youm reported.

Mortgage transactions during 2025 totalled Dh179.26 billion across 50,974 deals, while property gifts amounted to Dh57.25 billion through 9,556 transactions.

Quarterly sales rose 26.86 per cent year on year, compared with Dh147.77 billion in the final quarter of 2024. In December alone, property sales surged 51.98 per cent to Dh64.82 billion across 19,220 transactions, compared with Dh42.65 billion in December 2024.

The January data points to sustained momentum in Dubai’s real estate market, supported by rising off-plan demand, resilient secondary market values and continued investor confidence.

While the primary market continues to lead growth, the steady performance of ready properties in the secondary segment suggests balanced conditions and depth across the market. With transaction values and volumes reaching historic highs, the strong start to the year reinforces Dubai’s standing as a global real estate hub and sets a firm foundation for the months ahead.