The UAE real estate market has entered 2026 with remarkable momentum, building on a record-breaking 2025 that saw Dubai surpass 270,000 transactions valued at AED 917 billion – a 20 percent year-on-year increase. With Abu Dhabi also posting strong gains and a staggering $470 billion committed to real estate projects through 2030, the sector is transitioning from rapid expansion into a phase defined by depth, resilience, and sustainable leadership. Here are the key developments shaping the market right now.
Record-Breaking Performance and Future Pipeline
The numbers tell a compelling story. Dubai’s residential market delivered its strongest performance on record last year, while Abu Dhabi closed 2025 with total property sales exceeding AED 164 billion, underlining sustained demand and growing investor confidence.
Looking ahead, JLL projects that the UAE will see $795 billion in total project cash flow between 2026 and 2030, with $470 billion specifically allocated for real estate development. This includes over $300 billion in Dubai alone, reinforcing the emirate’s position as a global real estate powerhouse.
James Allan, CEO of JLL UAE, Egypt and Africa, notes: “Strong market fundamentals boosted the Middle East and Africa real estate market in 2025, setting the momentum for sustained performance across asset classes in 2026”.
8 Key Trends Shaping Dubai and Abu Dhabi’s Residential Market
Property Finder’s latest data reveals distinct patterns driving both emirates :
Dubai Trends:
1. Home-seekers Choose Buying Over Renting
A clear shift toward homeownership is underway, with 70 percent of respondents planning to buy within the next six months. Sales listing impressions on Property Finder’s platforms increased to 49 percent in 2025, while rental impressions declined. First-time buyers played a significant role, supported by initiatives like Dubai’s First-Time Home Buyer programme, which enabled over 2,000 residents to purchase their first homes, generating more than AED 3.25 billion in residential property sales in the last six months.
2. Buyers Opt for Larger and Premium Homes
Entry-level properties under AED 1,000 per square foot made up just 8 percent of the market in 2025, down from 14 percent the previous year. Premium and luxury homes above AED 2,500 per square foot accounted for 20 percent of the market, up from 15 percent in 2024, fueled by high-net-worth inflows and $63 billion in incoming wealth.
3. Apartments Dominate Volumes, Villas Lead Price Growth
Apartments comprised 93 percent of residential transactions in 2025, while villa prices rose by 14 percent, outpacing apartments at 6 percent year-on-year.
4. Studios Outperform Larger Apartments
Studios now account for 25 percent of apartment transactions, delivering rental yields of 6 percent compared with 4–5 percent for larger units, making them the most return-efficient residential format.
5. Established and New Communities Both Thrive
Top ready communities including Downtown Dubai, Dubai Marina, Palm Jumeirah, and Dubai Hills Estate remain popular, while off-plan developments like Dubai Islands and Maritime City attract strong interest for luxury and waterfront homes.
Abu Dhabi Trends:
6. Strong Tilt Toward Homeownership
Sales listings accounted for 39 percent of platform impressions in 2025, up from 26 percent the year before, reflecting growing intent to settle long term.
7. Apartments Gain Demand Share
Apartments represent 72 percent of residential transactions, driven by healthy supply and wider choice across locations and price points.
8. Villa Buyers Upsize to Larger Homes
Within the villa segment, 4+ bedroom homes made up 62 percent of all villa transactions, up from 38 percent three years ago, highlighting family-led and lifestyle-driven demand.
Mega Project Launches Transforming the Landscape
Dh15 Billion Manchester City Yas Residences
Ohana Development has officially launched “Manchester City Yas Residences by Ohana,” a Dh15 billion gated waterfront community on Yas Canal in Abu Dhabi. This marks Manchester City F.C.’s first branded residential project globally.
The project spans 1.67 million square metres and will offer over 2,000 residential units, including villas, twin villas, maisonettes, waterfront penthouses, and apartments. Located adjacent to Ferrari World Abu Dhabi and SeaWorld Abu Dhabi, the development is scheduled for completion in 2029, with average standalone villa prices at AED 7 million.
At its core is an integrated Manchester City Academy, supported by elite training and recovery facilities aligned with the club’s approach to player development. Husein Salem, CEO of Ohana Development, stated: “The project underscores our long-term dedication to the emirate and our ambition to contribute to its global prominence through thoughtfully designed, future-ready communities”.
Luxury Market Momentum
Dubai’s ultra-luxury segment continues to defy expectations. H&H Development recently sold a penthouse for $108 million and is betting strongly on continued demand. The firm has begun presales of branded-luxury residences as part of a AED 5.5 billion ($1.5 billion) high-end mixed-use development called Janu Dubai in the Dubai International Financial Centre.
Shahab Lutfi, Chairman of H&H Development, notes: “We were talking about slowing demand two years ago. It hasn’t slowed and prices have gone up.” With over AED 30 billion in properties under development, the average price of apartments H&H sells is $10 million.
Remarkably, about 500 homes sold for more than $10 million last year in Dubai, surpassing all global cities including New York and Hong Kong, according to Knight Frank.
The Shift to Lifestyle-Led Developments
The market is witnessing a fundamental transformation, with residential properties increasingly functioning as lifestyle assets rather than simple housing solutions. Talal M. Al Gaddah, CEO of the Keturah luxury brand, observes that developers are moving away from high-volume construction toward projects focused on quality and wellbeing.
“The UAE real estate market in 2026 is entering a phase of maturity, selectivity, and institutional-grade discipline,” he says. “The key trend is a clear shift away from speculative volume toward value-driven, wellness-integrated, and purpose-led developments”.
Keturah Reserve, an AED 5.7 billion bio-living community at Mohammed Bin Rashid City’s District 7, exemplifies this approach with just 93 townhouses, 90 villas, and 533 apartments, designed to maintain quality rather than maximize units.
Transit-Oriented Development: A Blueprint for Urban Living
Dubai’s announcement of the Metro Blue Line, with an investment value of approximately $5 billion, represents more than transportation infrastructure—it’s a blueprint for future urban development. JLL highlights that Transit-Oriented Development (TOD) presents a dual value proposition: significant investment opportunities alongside meaningful urban transformation.
Well-executed TOD projects create truly integrated communities where residents can live, work, and thrive within accessible, connected neighborhoods.
Market Outlook and Investor Insights
CBRE reports that the UAE’s real estate markets ended 2025 on a high note, supported by resilient non-oil economic activity, strong population growth, and sustained domestic and international investment appetite.
Matthew Green, Head of Research at CBRE Mena, notes: “The UAE real estate market continues to demonstrate remarkable resilience across all major sectors. Demand fundamentals remain exceptionally strong, supported by ongoing economic diversification, robust population growth, and rising investor confidence”.
The Bottom Line
The UAE real estate market in 2026 is defined by maturity, selectivity, and unprecedented institutional-grade investment. With a committed $470 billion in real estate projects through 2030, strong buyer fundamentals, and innovative developments reshaping communities, the sector offers diverse opportunities for investors, end-users, and industry professionals alike.
From branded sports residencies in Abu Dhabi to ultra-luxury waterfront developments in Dubai, the market’s evolution reflects a clear trajectory: real estate in the UAE is no longer just about property—it’s about lifestyle, longevity, and long-term value creation.
Whether you’re a first-time buyer, seasoned investor, or industry professional, understanding these market dynamics is essential for making informed decisions in 2026. Contact Realty Access for personalized guidance on navigating today’s opportunities.
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