Dubai’s ultra-prime residential property market reached new heights during the first half of 2026, while investment in the emirate’s commercial real estate sector continued to expand, according to the latest market analysis from Engel & Völkers Middle East.
A total of 320 residential properties valued above US$10 million were sold during the six-month period, an increase of 23% year-on-year, with combined transaction value reaching US$6.0 billion. Ultra-prime properties accounted for 9.7% of Dubai’s total residential sales value, demonstrating the increasingly significant role of <a href="https://jordangazette.com/gold-climbs-to-seven-week-high-at-around-4286-per-ounce/”>high-value real estate within the wider market.
The performance came despite a more measured period for Dubai real estate overall. Following a strong start to the year, regional uncertainty from late February contributed to buyers and investors taking longer to make decisions, with transaction activity moderating through the middle of the half. As conditions improved, activity began to recover, reinforcing the resilience of underlying demand.
The ultra-prime performance came within a wider residential market that remained highly active during the first half of the year. Dubai recorded 80,509 residential sales with a combined value of AED226.5 billion, with activity spanning a broad range of price points and continuing to attract both domestic and international buyers.
Market conditions varied considerably over the six-month period. January and February began strongly, with transaction volumes ahead of the same period in 2025, before heightened regional uncertainty from late February contributed to more cautious buyer behaviour and lower activity through the following months. As conditions gradually improved, transaction volumes recovered in June, reinforcing the continued depth of demand across the market.
Despite the moderation in sales activity, property values remained resilient across much of Dubai. Performance was particularly strong within established villa communities and the prime residential segment, while buyers increasingly took a more considered approach to purchasing decisions, placing greater emphasis on property quality, location, developer reputation and long-term value.
Daniel Hadi, CEO of Engel & Völkers Middle East, said: “The first half of 2026 demonstrated the resilience and increasing maturity of Dubai’s real estate market. We saw buyers become more considered during the period of regional uncertainty, but importantly, demand remained present and activity began to strengthen again as conditions improved. What continues to give us confidence is the depth of the market, from growing international demand for exceptional ultra-prime homes to sustained activity across the wider residential sector.”
At the top end of the market, major transactions continued to take place across some of Dubai’s most prestigious established and emerging locations. High-value sales across Jumeirah, Jumeirah Asora Bay and the Dubai Water Canal reflected continued demand for exceptional residences offering waterfront locations, privacy, architectural quality and access to world-class amenities.
The geographical spread of these transactions also reflects the continued expansion of Dubai’s luxury residential landscape. While established prime destinations remain highly sought after, a new generation of developments is creating additional opportunities for high-net-worth buyers seeking increasingly sophisticated homes and lifestyle-led communities.
Dubai’s commercial property market also delivered a strong first-half performance. A total of 6,470 commercial properties changed hands with a combined value of AED62.2 billion, representing increases of 7% and 6% respectively compared with H1 2025. Both figures represent the highest levels recorded during a first-half period.
Office and retail property were particular areas of strength. Office sales increased 35.3% year-on-year to 2,570 transactions, while retail transactions rose 50.2% to 853. The value of office sales reached AED15.8 billion, almost three times the AED5.4 billion recorded during the same period last year.
One of the most significant shifts was the acceleration of investment into off-plan commercial property. Off-plan transactions increased from 1,239 in H1 2025 to 3,123 in H1 2026, while their combined value rose from AED3.0 billion to AED17.0 billion. The growth reflects strong investor appetite for Dubai’s next generation of Grade A offices, premium retail space and commercial developments within the city’s expanding business districts and mixed-use communities.
The leasing market also remained highly active across the first half of the year. Residential rental demand continued to be supported by Dubai’s growing population and established resident base, while greater availability in parts of the market provided tenants with more choice. Commercially, 163,356 rental transactions were recorded, broadly in line with the exceptionally strong levels seen during H1 2025.
Looking ahead, the traditional summer period is likely to bring more measured levels of activity before the market enters the final months of the year. While regional developments may continue to influence sentiment in the short term, the improvement in activity towards the end of H1, alongside continued international investment and business expansion, provides a strong foundation for the remainder of 2026.
Dubai’s long-term fundamentals remain firmly supportive. Continued population growth, global capital inflows, economic diversification and investment in infrastructure are strengthening the emirate’s position as both an international residential destination and a global centre for business. Against this backdrop, Engel & Völkers expects quality, location and long-term value to remain increasingly important factors shaping investment decisions across both residential and commercial real estate.
