Dubai Residential Property Market Soars in January 2026: Transactions Reach AED 55.18 Billion, Up 43.9% Year-on-Year
The Dubai real estate market in 2026 is off to an impressive start, with residential property transactions hitting a record AED 55.18 billion in January alone. This marks a significant 43.9% increase compared to the same period in 2025, signaling strong confidence from both local and international investors. As a hub for real estate investment in Dubai, the market continues to attract buyers seeking luxury homes in Dubai and affordable properties in Dubai alike. This surge is driven by population growth, infrastructure developments, and a favorable economic environment, making it an ideal time to buy property in Dubai.
Key Highlights from Dubai Property Transactions in January 2026
In terms of volume, January 2026 saw 15,756 residential transactions, representing a 19.1% year-on-year rise. This robust activity underscores the ongoing Dubai residential market trends, where demand for villas for sale in Dubai and apartments for sale in Dubai remains high. The average sale price per square foot stood at AED 1,924, up from AED 1,685 in January 2025, although it experienced a slight 0.26% month-on-month softening.
Breaking it down by market segments:
- Off-Plan Properties: Dominating the scene, off-plan properties accounted for 71.27% of transactions, with 11,229 deals valued at AED 39.33 billion. This highlights the appeal of Dubai off-plan properties for investors looking for high returns in emerging developments.
- Secondary Market: The ready-to-move segment contributed 4,527 transactions worth AED 15.86 billion, appealing to end-users seeking immediate occupancy.
When it comes to price ranges, properties priced between AED 1 million and AED 3 million made up 49.09% of sales, while those under AED 1 million represented 22.91%. High-end buyers were active too, with properties over AED 10 million comprising 6.39% of the market.
Top Areas to Invest in Dubai: Where the Action Is
Investors eyeing real estate investment in Dubai should note the top-performing areas from January 2026. High-volume communities like DAMAC Islands 2, Jumeirah Village Circle, and Dubai South led the pack, offering a mix of affordable and mid-range options. Established neighborhoods such as Dubai Hills Estate, Dubai Creek Harbour, and Dubai Islands continue to draw steady interest for their premium amenities and lifestyle appeal.
For those searching for homes for sale in Dubai Hills Estate or properties in Jumeirah Village Circle, these areas provide excellent opportunities due to their strategic locations, green spaces, and connectivity. Dubai property prices in 2026 are expected to remain competitive in these hotspots, making them prime picks for both first-time buyers and seasoned investors.
Broader Market Insights and Future Outlook
The residential surge is part of a larger picture, with total market activity in Dubai reaching approximately AED 72 billion, including AED 17.06 billion in commercial sales. This growth is fueled by Dubai’s expanding population and timely infrastructure deliveries, reinforcing its status as a global real estate powerhouse.
Looking ahead, Dubai real estate investment trends in 2026 suggest continued momentum, particularly in off-plan segments and emerging districts. Whether you’re interested in luxury homes in Dubai or more budget-friendly options, now is a strategic time to explore the market. At The Real Estate Reports, we recommend consulting with experts to navigate these opportunities and secure the best deals.
For more updates on Dubai property transactions and market analyses, stay tuned to our blog. If you’re ready to buy property in Dubai, contact us today for personalized advice on the top areas to invest in Dubai.\
