AED 55.2B In January Sales As Dubai Property Market Enters 2026 On Strong Footing
Dubai’s residential property market entered 2026 with rising transaction volumes and renewed buyer activity. The trend was underpinned by sustained demand for mid-market homes and continued investor participation, according to January data from betterhomes.
Residential sales reached AED 55.2 billion (USD 15.0 billion) across 15,764 transactions in January, following a strong close to 2025. Sales value rose 18.7% month-on-month, while transaction volumes increased 8.9%, supported by steady demand and broadly stable pricing. Average sale prices stood at AED 1,924 per square foot, reflecting a marginal 0.25% month-on-month change.
Off-plan properties accounted for 67% of transactions, with apartments dominating overall activity. One-bedroom units represented the highest share of transactions, reflecting continued demand across mid-market and investment-led segments.
At betterhomes, buyer leads increased 22% month-on-month, with investors representing 56% of buyers and end-users accounting for 44%, indicating broad-based demand across buyer profiles.
Louis Harding, CEO of betterhomes, reflects, “Starting the year with AED 55.2 billion in sales across nearly 16,000 transactions underscores the market’s resilience and depth. Demand is being absorbed steadily rather than in a rush, signalling confidence across buyer segments.”
He continues, “The combination of rising volumes and stable pricing points to a market driven by participation rather than speculation. From mid-market homes to investment-led opportunities, buyers are making deliberate, confident moves.”
Leasing activity also remained elevated, with 48,966 rental transactions recorded in January. Contract structures held steady, with 64% renewals and 36% new leases, reflecting strong tenant retention and ongoing population inflows.
Rental growth remained selective rather than broad-based. The Lakes recorded the highest villa rental growth at 3% month-on-month, with average rents reaching AED 365,000. Al Khail Heights led the apartment segment, also recording 3% month-on-month growth, with average rents reaching AED 70,000.
At betterhomes, achieved rental rates continued to outperform market averages, particularly in the villa segment, where average rents reached AED 399,000. This demonstrates sustained demand for larger homes within established communities.
Rupert Simmonds, Leasing Director at betterhomes, observes, “Nearly 49,000 rental transactions in January show a market defined by stability and sustained demand. Renewal rates remain strong, reflecting tenants’ preference for continuity.”
He highlights, “Villa rental rates continue to outperform market averages, with AED 399,000 achieved on average. The demand for quality homes underscores Dubai’s resilience as a long-term rental market.”
