Dubai, UAE – The latest report issued by Angel & Volkers Middle East stated that the real estate market in Dubai is witnessing a gradual shift from the stage of rapid growth that characterized it in recent years to a more mature growth stage, led by a focus on sustainability.
The report stated that although activity levels remain at strong rates, the latest data indicates an increase in quality-based demand across various categories of buyers.
With a significant concentration of activity in higher-value residential units, along with a decline in the supply dynamics of premium commercial assets, particularly first-class offices.
Angel & Volkers confirmed that the commercial real estate market in Dubai entered 2026 from a strong position.
It recorded 1,446 sales transactions last January, an increase of 23.7% year-on-year, compared to 1,169 transactions in the same period last year.
While the total sales value reached 17.1 billion dirhams, representing an annual increase of 82%. Offices and retail stores were the main drivers of activity.
This reflects the continued flow of capital towards core commercial assets, and investors’ continued confidence in the foundations of long-term tenant demand in the emirate.
The offices sector showed the most prominent performance within the commercial real estate market, as the volume of transactions increased by 133% year-on-year, while the total value of offices sold jumped by 296%, reflecting the increasing demand for distinguished assets with strategic locations.
Engel & Volkers» confirmed that the market continues to show remarkable depth across various categories, with new projects continuing to be a major driver of activity.
Residential apartments topped the total transaction volume.
Rental market fundamentals also remained supportive, with the average total return rising to 6.9%, enhancing Dubai’s attractiveness to income-seeking investors along with demand from end users.
In many major complexes, prices maintained positive growth, but at a slower pace compared to the exceptional gains recorded between 2023 and 2025.
This indicates a market moving towards a more stable path characterized by longer asset holding periods and an increased focus on purchasing strategies for the purpose of housing or achieving investment returns.
The Engel & Volkers report confirmed that the Dubai market is still very active, with increasing levels of differentiation between assets.
Top-performing residential assets and outstanding commercial assets continue to demonstrate pricing power, high liquidity, and investor confidence as Dubai enters a more mature phase of growth.
Quality of supply
Daniel Hadi, CEO of «Engel & Volkers» Middle East, said: “The real estate market in Dubai shows features of a more mature cycle, especially with demand increasingly relying on the quality and scarcity of supply and long-term foundations”. In the residential sector, we are witnessing a continued expansion in premium real estate transactions, along with more selective and value-based decision-making across the market. In the commercial sector, the acceleration of office transactions and the rise in their values reflect a decline in the supply of first-class units, prompting a strategic shift towards the real estate market under construction, as companies and investors seek to secure long-term locations. These dynamics reinforce Dubai’s position as a market characterized by depth, liquidity and long-term flexibility.
