Dubai Property Boom: What $250bn in Deals Means for 2026

Dubai’s real estate market delivered a record-breaking performance in 2025, registering more than 270,000 transactions worth AED917 billion ($249.7 billion), according to market analysis referencing data from the Dubai Land Department.

The milestone marks one of the strongest years in the emirate’s property history, reinforcing Dubai’s position as a global investment hub.

Off-Plan Sales Dominate at 72%

A defining feature of 2025 was the dominance of the off-plan segment. Independent reports show that off-plan properties accounted for approximately 72% of residential transactions throughout the year.

In the first half of 2025 alone, transaction volumes reached 125,538 deals worth AED431 billion ($117.3 billion), reflecting a 26% increase in volume and a 25% rise in value compared to the previous year.

Industry leaders note that the off-plan market has evolved from momentum-driven buying to a more fundamentals-based approach. Buyers are increasingly evaluating long-term liveability, developer credibility, infrastructure access, operating costs and overall community design.

2026: A More Selective Market

While 2025 was defined by rapid growth, 2026 is shaping up to be a year of peak supply delivery and greater buyer choice.

A significant pipeline of project completions is expected between 2025 and 2027. Analysts warn that elevated supply levels could introduce medium-term pricing pressure, making selectivity more important than speed.

Buyers are now focusing on:

• Proven delivery track records

• Infrastructure connectivity

• Walkability and community services

• Schools and transport access

• Long-term rental sustainability

This signals a shift toward an investment-led, fundamentals-driven market environment.

Regulation Strengthens Buyer Confidence

The regulatory framework continues to play a crucial role in supporting investor confidence.

Under Dubai Law No. 8 of 2007, developers selling off-plan units must operate escrow accounts, ensuring that buyer funds are protected and released in line with construction progress.

Execution standards have also improved. Major developers are increasingly bringing construction capabilities in-house to manage costs, timelines and delivery expectations, addressing concerns from earlier property cycles.

Golden Visa and Rental Yields Boost Appeal

Government policy remains a strong catalyst for international investment.

The UAE’s 10-year Golden Visa programme, linked to property ownership thresholds, continues to attract global professionals, entrepreneurs and long-term residents. Mortgaged properties can also qualify, subject to documentation confirming the required paid amount.

Dubai’s rental yields remain competitive, with average returns typically reported in the mid-single-digit range up to around 7%, with higher yields in select value-driven communities.

Technology and Sustainability Shape Demand

Modern buyers are also prioritising smart living and sustainability.

The UAE smart home market is projected to grow at a 27.5% compound annual growth rate between 2025 and 2030, indicating rising demand for technology-enabled properties.

At the same time, Dubai Municipality’s Green Building regulations position energy and water efficiency as core development requirements, strengthening long-term asset resilience and reducing operating costs.

Long-Term Growth Outlook

On a national scale, the UAE real estate sector is projected to grow from $82.41 billion in 2024 to $132.39 billion by 2030.

While 2026 may bring greater scrutiny and price sensitivity, Dubai’s 2025 performance underscores a strong structural foundation built on regulation, global investor demand and evolving buyer expectations.

The next chapter for Dubai real estate will likely be defined not by volume alone — but by quality, delivery and long-term value creation.