Dubai Residential Transactions Hit AED 139.2bn In Q1 As Market Enters Selective Phase, Says betterhomes
Transaction value rises 21% year-on-year, while off-plan accounts for 68% of market activity
Dubai’s residential market is entering a more selective phase, with buyers still active but increasingly focused on pricing, quality and long-term value, according to the betterhomes Q1 2026 Dubai residential market report.
The market recorded 44,493 residential transactions in Q1, up 4% year-on-year, while total transaction value rose 21% to AED 139.2 billion. Transaction volumes declined 17% quarter-on-quarter, reflecting slower decision-making in March rather than a loss of underlying demand.
Off-plan remained the strongest driver of activity, accounting for 68% of total transactions. Off-plan volumes increased 20% year-on-year, while off-plan transaction value rose 35%. Secondary transactions declined 19% year-on-year, pointing to greater pricing sensitivity in the ready market.
Louis Harding, CEO of betterhomes, said: “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.”
Buyer behaviour reflected the same shift. Enquiries declined 18% year-on-year, but demand moved towards larger, higher-value homes, with villa and townhouse enquiries rising 15%, while apartment enquiries fell 31%. Investors accounted for 57% of transactions, up from 50% in Q1 2025.
The prime segment continued to outperform, with transactions above AED 15 million rising 43% year-on-year to 1,214 deals, supported by an 84% increase in off-plan prime transactions.
Leasing became more competitive. Enquiries increased 7% year-on-year, but transactions declined 5% year-on-year and 26% quarter-on-quarter, as increased supply and more selective tenant behaviour slowed deal conversion. Underlying demand remains present, but new-let apartment prices across prime communities have declined 10–20% year-on-year, creating a gap between what existing tenants are paying and what new tenants are negotiating. March saw the sharpest adjustment, with enquiries falling over 40% month-on-month, shaped by seasonal factors and regional developments.
betterhomes said the market is not weakening, but maturing, with performance across sales and leasing increasingly shaped by pricing discipline, product quality and strong positioning.
