Dubai Residential Market Review — February 2026

February marked a normalization phase following January’s exceptional performance, with transaction values and volumes moderating while overall market fundamentals remained strong. The shift in activity was driven by a transition from villa-led momentum to apartment-dominated demand, supported by steady pricing, high liquidity, and sustained investor confidence. Off-plan sales continued to lead the market, reinforcing the role of structured payment plans and forward-looking investments.

This report provides a comprehensive overview of Dubai’s residential market performance across key segments, including apartments, villas, commercial assets, and land. It outlines transaction dynamics, price trends, rental activity, buyer profiles, and top-performing areas, offering a detailed view of how the market is evolving amid new supply and consistent demand drivers.

General Market

February saw a natural correction following Januaryʼs exceptional opening to 2026. The month registered AED 61.4 billion across 17,120 transactions, representing a 15.3% month-on-month decline in value and a 2.0% dip in volume. However, the market remains robust on an annual basis, with value up 20.4% from February 2025ʼs AED 51 billion and transaction volume rising 6.3% from 16,106.

The contraction was primarily driven by the villa segmentʼs normalization after an extraordinary January, though apartment sales demonstrated resilience with modest growth. This moderation reflects a market recalibrating toward sustainable transaction levels while maintaining strong underlying liquidity and investor confidence in Dubaiʼs property sector.

Villa/Townhouse

The villa segment experienced a sharp correction in February following Januaryʼs peak performance. Transactions fell to 2,792 deals worth AED 18.7 billion, representing a 19.0% drop in volume and a substantial 30.2% decline in value month-on-month.

Off-plan villas registered 1,994 sales totaling AED 13.9 billion, while ready stock contributed 798 transactions at AED 4.74 billion. The average villa ticket size compressed significantly compared to Januaryʼs highs, reflecting a shift toward smaller plot configurations and fewer ultra-luxury transactions.

Secondary market hotspots included Damac Hills 2 (254 rental transactions indicating strong leasing demand), Mirdif, and Mudon.

Apartments

Apartments emerged as Februaryʼs strongest performer, recording 13,081 sales worth AED 27.2 billion — a 2.0% increase in volume and 3.0% rise in value from January.

The average apartment transaction held steady at approximately AED 2.08 million, with off-plan units commanding AED 2,063 per square foot (up from AED 2,021 in January) and ready stock reaching AED 1,758 per square foot.

JVC dominated secondary market activity with 437 transactions, while Business Bay (287) and Dubai Marina (187) maintained strong investor interest.

In the off-plan sphere, Damac Island City led with 912 sales, followed by Dubailand Residence (772) and JVC (739).

Off-plan apartments accounted for 68.7% of the segmentʼs volume (8,979 units), supported by attractive payment plans and sustained end-user demand for flexible entry points into the market.

Off-Plan

Off-plan sales continued to dominate residential market dynamics in February, capturing 64.1% of total transactions by volume (10,974 units) and approximately 72.6% by value (AED 33.3 billion).

The average off-plan transaction value moderated to AED 3.03 million, reflecting a broader mix of apartment typologies following Januaryʼs villa-heavy composition.

Damac Island City maintained leadership with 912 sales, while Meydan City (632) and Dubai Islands (620) rounded out the top performers.

Mortgage data revealed cash buyersʼ continued supremacy, with 12,491 cash transactions (78.7% of residential sales) compared to 3,382 mortgage purchases.

This off-plan resilience underscores sustained appetite for structured payment schemes and forward-looking development projects, despite the broader marketʼs month-on-month value adjustment.

Commercial

Commercial property demonstrated steady growth despite flat transaction volumes, with 819 deals generating AED 4.2 billion in value — a 5.0% increase from January.

New rental registrations totaled 15,122 contracts across the sector, with offices comprising the majority at 8,218 transactions (down 5.4%), while shops and showrooms recorded 1,997 deals (down 14.5%).

Industrial bucked the trend with a 2.0% increase to 304 transactions.

Business Bay and DIFC remained focal points for investor capital seeking yield, supported by stable occupancy rates and resilient rental returns.

Land

Land transactions showed divergent trends in February, with volume rising 9.2% to 428 deals while value declined sharply by 26.1% to AED 11.3 billion.

This disconnect suggests a shift toward smaller plot acquisitions and fewer large-scale institutional land banking transactions compared to Januaryʼs high-value deals.

Investor focus remained on strategic development zones and master community parcels, though average ticket sizes normalized as developers adopted a more selective approach to site acquisition.

The pipeline remains healthy, with March residential supply additions including 11,036 apartments and 2,005 villas scheduled for handover, supporting continued land demand for future phases.

Rental Transactions

Dubaiʼs leasing market moderated in February following Januaryʼs post-holiday surge.

The month recorded 37,185 new rental contracts, representing a 13.8% decline from Januaryʼs elevated levels but maintaining healthy underlying activity.

Apartments registered 19,856 leases, down 15.5% month-on-month as the seasonal relocation rush subsided, while villa leases eased 11.6% to 2,207 contracts.

Commercial leasing softened to 15,122 contracts, an 11.8% retreat reflecting typical quarterly cycling after year-end renewals.

The normalization aligns with historical first-quarter patterns, where Januaryʼs peak activity traditionally gives way to more measured February volumes.

Despite the monthly decline, demand fundamentals remain intact across asset classes, with occupancy rates holding steady as new supply absorption continues apace.

Villas & Townhouses

The villa segment underwent a sharp correction in February after Januaryʼs exceptional performance, recording 2,792 deals worth AED 18.7 billion, a 19.0% decline in volume and 30.2% contraction in value month-on-month.

Off-plan villa sales totaled 1,994 transactions at AED 13.9 billion, while ready sales contributed 798 units worth AED 4.7 billion.

The reversal reflects both seasonal normalization and the absence of Januaryʼs high-value luxury inventory releases that had inflated average ticket sizes.

Demand persisted in established communities including Damac Hills 2 (254 rental transactions indicating strong occupancy), Mirdif, and Mudon, though at reduced velocity.

Apartments

Apartments strengthened their market position in February, with 13,081 units sold for AED 27.2 billion — a 2.0% increase in volume and 3.0% rise in value from January.

Off-plan activity remained the primary driver, contributing 8,979 deals worth AED 19.4 billion (68.7% of apartment volume), while ready apartment sales reached 4,102 units valued at AED 7.8 billion.

Investors targeted mid-market launches in JVC (739 off-plan sales) and Dubailand Residence (772 sales), while end-users concentrated on ready stock in Business Bay (287 secondary sales) and Dubai Marina (187 sales).

The average off-plan transaction settled at AED 3.05 million with price per square foot advancing to AED 2,063, reflecting steady developer pricing power and sustained end-user appetite for structured payment plans.

New rental registrations in JVC (1,379) and International City (1,135) underscored the segmentʼs rental yield appeal alongside capital growth.

Commercial Properties

The commercial sales sector demonstrated pricing resilience amid stable transaction volumes in February, logging 819 deals worth AED 4.2 billion, a 5.0% value increase despite flat volume compared to January.

Office transactions remained concentrated in Business Bay and DIFC, with investor appetite sustained by rental yields of 6-8% and occupancy rates exceeding 90% in grade-A stock.

Retail properties saw selective investor targeting of street-facing units in high-footfall zones, while industrial sales maintained consistency in small-scale logistics.

The AED 4.2 billion transaction value represented one of the strongest February performances for the sector, signaling continued institutional confidence in Dubaiʼs business expansion trajectory and preference for income-generating assets amid global economic uncertainty.

Land Plots

Land activity shifted toward volume growth in February, with 428 transactions representing a 9.2% increase from January, though total value declined 26.1% to AED 11.3 billion.

This divergence indicates a transition toward smaller plot acquisitions and strategic parceling compared to Januaryʼs institutional bulk purchases.

Developers remained active in Dubai South, Al Furjan, and island projects, securing sites for mid-2026 launches and phased master plan expansions.

The average plot size decreased as investors targeted infill opportunities and redevelopment plots in mature communities, while large-scale land banking paused following Januaryʼs significant portfolio transactions.

With 11,036 apartments and 2,005 villas scheduled for March handover, land demand for future development phases remains underpinned by strong forward sales and pre-leased stock absorption.

Transactions Value Graph 2025 v/s 2026

February 2026 recorded AED 61.4 billion in total transaction value, representing a 15.3 percent moderation from Januaryʼs exceptional AED 72.5 billion, yet maintaining a robust 20.4% increase over February 2025ʼs AED 51 billion.

The month-on-month contraction was primarily driven by the villa segmentʼs normalization, with values retreating to AED 18.7 billion from Januaryʼs peak of AED 26.8 billion, and land deals adjusting to AED 11.3 billion from AED 15.3 billion.

Conversely, apartments demonstrated resilience, advancing 3.0% to AED 27.2 billion, while commercial sales strengthened 5.0% to AED 4.2 billion.

The shift toward apartment-led activity reduced average ticket sizes but sustained transaction liquidity, positioning February as a healthy correction toward sustainable quarterly trading levels rather than demand deterioration.

Dubai registered 17,120 property transactions in February 2026, a modest 2.0% decline from Januaryʼs 17,477 deals but a solid 6.3% improvement over February 2025ʼs 16,106 transactions.

The composition shifted markedly from Januaryʼs villa surge, with apartment volumes rising 2.0% to 13,081 units while villa sales normalized to 2,792 transactions (down 19.0% from Januaryʼs 3,445).

Land transactions bucked the trend with a 9.2% increase to 428 deals, suggesting continued developer site acquisition despite lower per-plot values.

The volume stability amid value contraction indicates sustained market breadth across price points, with first-time buyers and mid-market investors maintaining activity even as ultra-luxury villa transactions paused.

New Rental Transactions

Leasing activity normalized in February following Januaryʼs post-holiday peak, with 37,185 new contracts signed, representing a 13.8% monthly decline but maintaining healthy underlying demand fundamentals.

Apartment leases moderated to 19,856 contracts (down 15.5% from January) as the seasonal relocation rush subsided, while villa registrations eased 11.6% to 2,207 contracts.

Commercial leasing retreated 11.8% to 15,122 contracts, aligning with typical quarterly cycling after year-end renewals.

Despite the monthly pullback, the February figures remain elevated compared to Q4 2025 averages, suggesting Dubaiʼs population growth and business expansion continue supporting absorption across residential and commercial stock.

Commercial Rental Breakdown

Commercial leasing activity selectively softened in February, with total new contracts reaching 15,144, down 11.7% from Januaryʼs elevated baseline.

Shops and showrooms declined 14.5% to 1,997 deals as retail operators finalized locations ahead of slower summer trading months, while office leases saw a gentler 5.4% correction to 8,218 contracts, supported by resilient professional services demand.

Industrial leasing proved the exception, rising 2.0% to 304 contracts as logistics users continued absorbing warehousing capacity in Dubai South and Al Quoz.

The “other” category, encompassing staff accommodation and flexible-use spaces, declined 20.7% to 4,625 leases following Januaryʼs corporate relocation surge.

The sectorʼs relative stability in office and industrial categories offset retail volatility, maintaining occupancy rates across prime business corridors.

Off-plan sales sustained market dominance in February, accounting for 10,974 residential transactions (64.1% of volume) valued at AED 33.3 billion, compared to 4,936 ready deals worth AED 12.6 billion.

This represents a shift in composition from January, with off-plan value share moderating to 72.6% of residential totals as ready stock gained marginal ground.

Apartment launches remained the primary driver, contributing 8,979 off-plan sales (AED 19.4 billion), while villa off-plan activity cooled to 1,994 transactions (AED 13.9 billion) from Januaryʼs exceptional highs.

The average off-plan transaction value normalized to AED 3.05 million, reflecting the mix shift toward apartments, while ready market activity concentrated in established communities with immediate occupancy appeal.

Apartments anchored residential activity in February with 13,081 sales totaling AED 27.2 billion, marking a 2.0% volume increase and 3.0% value gain month-on-month.

The segment split favored off-plan acquisitions, with 8,979 transactions (AED 19.4 billion) compared to 4,102 ready sales (AED 7.8 billion).

Villa transactions normalized to 2,792 deals worth AED 18.7 billion following Januaryʼs surge, comprising 1,994 off-plan sales (AED 13.9 billion) and 798 ready transactions (AED 4.7 billion).

Price trends remained positive, with off-plan apartments reaching AED 2,063 per square foot (up from Januaryʼs AED 2,021) and average off-plan tickets settling at AED 3.05 million.

Top off-plan destinations included Damac Island City (912 sales), Dubailand Residence (772), and JVC (739), while secondary buyers concentrated in JVC (437 sales), Business Bay (287), and Dubai Marina (187), indicating sustained end-user appetite for both emerging launches and established communities with rental income potential.

Off-Plan Sales

Februaryʼs off-plan landscape saw shifting dynamics among top performers, with transaction volumes moderating from Januaryʼs peak while maintaining robust absorption.

Damac Island City retained market leadership with 912 sales, though down from Januaryʼs 1,099 transactions as initial launch inventory absorbed.

Dubailand Residence climbed to second position with 772 deals, up significantly from Januaryʼs 644, driven by continued phase releases and competitive payment structures.

JVC advanced to third with 739 transactions (up from 617), leveraging its established infrastructure and mid-market appeal.

Meydan City entered the top tier with 632 sales, reflecting renewed investor interest in centrally located master plans, while Dubai Islands rounded out the top five with 620 deals, moderating from Januaryʼs 654 but maintaining strong waterfront demand.

These communities continue benefiting from phased release strategies and structured buyer terms, though average price points edged higher to AED 2,063 per square foot.

Secondary Sales

The ready market demonstrated resilience in February, with established investment corridors maintaining activity despite tighter inventory.

JVC strengthened its position as the secondary market hub, recording 437 resale deals, up marginally from Januaryʼs 432, supported by strong rental yields and affordability.

Business Bay followed with 287 transactions, down from Januaryʼs 304 as premium stock faced supply constraints.

Dubai Marina climbed to third with 187 deals, up from 159 previously, benefiting from end-user demand for immediate occupancy in waterfront locations.

Dubai Creek emerged as a notable entry with 182 transactions, reflecting growing interest in the emerging waterfront district, while Downtown Dubai registered 176 deals, down from 204 as luxury inventory became increasingly scarce.

These areas continue offering institutional-grade infrastructure and established tenant demand, supporting capital preservation strategies.

New Villa Rentals

The villa leasing market showed selective strength in February, with Damac Hills 2 extending its dominance despite broader seasonal cooling.

The community recorded 254 new leases, up significantly from Januaryʼs 219, supported by ongoing handovers and expanding retail amenities.

Mirdif followed with 97 contracts, down from 110 but maintaining family appeal through established schools and community infrastructure.

Mudon registered 80 leases (down from 98), Dubai Hills Estate posted 76 (down from 92), and Villanova recorded 74 (down from 79).

The contraction in secondary-tier communities reflects limited new supply releases and tenants securing longer-term leases in January.

However, Damac Hills 2ʼs continued growth underscores the marketʼs appetite for affordable family housing with recreational facilities, while the tight inventory in Dubai Hills Estate and Mirdif sustained rental rate premiums despite lower transaction volumes.

New Apartment Rentals

Leasing activity corrected seasonally in February following Januaryʼs post-holiday surge, though key corridors maintained strong absorption.

JVC led the apartment segment with 1,379 new leases, down from Januaryʼs 1,844 but retaining its position as the emirateʼs most active rental hub due to affordability and community maturity.

International City followed with 1,135 contracts, moderating from 1,556 previously while maintaining appeal for budget-conscious tenants.

Business Bay registered 894 leases, holding steady near Januaryʼs 906 levels, supported by professional services sector demand.

Dubai Marina recorded 606 contracts, down from 825, and Downtown Dubai entered the top five with 545 leases, displacing Silicon Oasis as tenants prioritized central locations with transit access.

The overall moderation reflects typical quarterly cycling rather than demand weakness, with occupancy rates remaining firm across these established nodes.

Cash maintained its position as the dominant transaction method in February, accounting for approximately 79% of residential deals.

Out of 15,873 recorded home sales (combining apartments and villas), 12,491 were completed in cash, while 3,382 utilized mortgage financing.

Total mortgage transaction value reached AED 8.1 billion, yielding an average loan size of roughly AED 2.39 million — consistent with Januaryʼs levels as villa financing remained prevalent despite the segmentʼs monthly volume correction.

Apartments continued to exhibit strong cash preference, though with slight moderation from Januaryʼs peak.

Of 13,081 apartment transactions, 10,705 were cash purchases while 2,376 employed financing, maintaining an 82% cash to 18% mortgage split.

This ratio reflects the segmentʼs accessible entry points and rapid turnover in off-plan developments, with investors and end-users alike leveraging liquidity for sub-AED 3 million acquisitions.

Villas demonstrated the highest mortgage penetration among residential categories, with financing capturing 36% of transactions.

Out of 2,792 villa sales, 1,786 were cash transactions while 1,006 used mortgage facilities.

The composition suggests that while villa volumes normalized from Januaryʼs exceptional highs, genuine owner-occupier demand remained active through bank financing.

The overall transaction mix reinforces Dubaiʼs liquidity-driven market structure, with cash investors maintaining dominance in apartment acquisitions while mortgage markets facilitate family home purchases in established villa communities.

Dubaiʼs residential pricing extended its upward trajectory through February, with both off-plan and ready segments registering month-on-month and year-on-year appreciation.

Off-plan rates averaged AED 2,063 per square foot, representing a 2.1% advance from Januaryʼs AED 2,021 and a substantial 15.8% gain over February 2025ʼs AED 1,782.

Ready property values climbed to AED 1,758 per square foot, up 3.7% month-on-month from AED 1,696 and 9.8% higher than the AED 1,601 recorded in February 2025.

The off-plan segment continues commanding premium pricing, with developers maintaining a firm stance on AED 3+ million average tickets in prime master plans.

This growth reflects sustained absorption of waterfront and branded residences, particularly in Damac Island City and Meydan City, where limited phase releases support pricing power.

Ready stock appreciation concentrated in supply-constrained districts like Downtown and Dubai Marina, where immediate occupancy commands significant premiums over off-plan alternatives.

Looking ahead, March brings substantial new inventory with 11,036 apartment units and 2,005 villas scheduled for handover.

This supply influx arrives as off-plan prices reach AED 2,063 per square foot and ready stock nears AED 1,758 per square foot, potentially moderating rate-of-growth in select secondary locations.

However, with population-driven demand remaining robust and Februaryʼs transaction volume holding steady at 17,120 deals, the market appears positioned to absorb incoming stock without destabilizing current price levels.

The trend indicates a maturing cycle where quality differentials and location premiums increasingly drive valuation divergence across sub-markets.

The shift toward apartment dominance reflects both seasonal normalization and sustained end-user appetite for accessible entry points in established communities.

The villa segment underwent a sharp correction after Januaryʼs peak performance, recording 2,792 transactions worth AED 18.7 billion.

This 30.2% value contraction and 19.0% volume decline from Januaryʼs exceptional highs represents a return to normalized trading levels rather than fundamental weakness.

Off-plan villa sales settled at 1,994 units (AED 13.9 billion), while ready stock contributed 798 deals.

Demand persisted in Damac Hills 2, Mirdif, and Dubai Hills Estate, though at reduced velocity following the previous monthʼs high-value inventory releases.

The adjustment brings villa activity in line with historical Q1 averages while maintaining year-on-year pricing premiums.

Commercial properties demonstrated resilience, posting 819 transactions worth AED 4.2 billion — a 5.0% value increase despite flat volume.

Office assets in Business Bay and DIFC maintained investor interest through stable occupancy above 90%, while retail units in high-footfall corridors sustained yield premiums.

Apartments emerged as Februaryʼs standout performer, flipping the narrative from Januaryʼs villa surge.

The segment recorded 13,081 deals worth AED 27.2 billion, marking a 2.0% volume increase and 3.0% value gain month-on-month.

Off-plan apartments commanded AED 2,063 per square foot — a new threshold — while maintaining absorption above 8,900 units.

Buyer concentration remained in mid-market hubs including JVC, Business Bay, and Dubailand Residence, where flexible payment plans and rental yield security continued driving investor decisions.

Dubaiʼs real estate market moderated in February following Januaryʼs exceptional opening, with AED 61.4 billion in total sales value across 17,120 transactions.

This represents a 15.3% monthly adjustment from Januaryʼs record AED 72.5 billion, yet maintains robust annual growth of 20.4% compared to February 2025ʼs AED 51 billion.

Transaction volumes held relatively steady, dipping just 2.0% month-on-month while advancing 6.3% year-on-year, indicating a market recalibrating toward sustainable velocity rather than experiencing demand erosion.

Industrial leasing bucked broader trends with a 2.0% transaction increase, reflecting continued logistics absorption in Dubai South.

The segmentʼs value growth amid volume stability indicates improving per-unit pricing and sustained institutional confidence in income-generating assets.

Leasing activity normalized seasonally, with 37,185 new rental contracts registered — down 13.8% from Januaryʼs post-holiday surge but maintaining healthy underlying absorption.

Apartment leases moderated to 19,856 contracts, while villa registrations settled at 2,207.

The correction aligns with historical first-quarter patterns, with JVC (1,379 leases) and International City (1,135) retaining dominance in the residential rental market.

Commercial leasing softened to 15,122 contracts as year-end renewals cycled through, though office demand in central business districts showed relative stability.

Off-plan sales continued anchoring market liquidity, capturing 64% of residential volume (10,974 transactions) and 72.6% of value (AED 33.3 billion).

While down from Januaryʼs peak, the segment maintained strong pricing power with average rates reaching AED 2,063 per square foot and transaction sizes averaging AED 3.05 million.

Damac Island City retained leadership with 912 sales, supported by Meydan City (632) and Dubai Islands (620).

Cash transactions dominated at approximately 79% of residential deals (12,491 cash versus 3,382 mortgage), though villa financing maintained a 36% share, indicating sustained end-user family demand.

The market enters March with substantial new supply — 11,036 apartments and 2,005 villas scheduled for handover — against a backdrop of firm pricing and steady transaction velocity.

Februaryʼs data confirms Dubaiʼs real estate sector has transitioned from Januaryʼs explosive villa-led growth into a more balanced, apartment-driven expansion phase.

With population growth sustaining rental demand and developer launches maintaining disciplined absorption rates, the fundamental outlook remains constructive despite the monthly value moderation.

The sector appears positioned to absorb incoming inventory efficiently while maintaining the pricing gains established through early 2026.

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