The UAE real estate market started 2026 on a very strong note. January was not just good. It was historic. The data shows clear demand, steady confidence, and real activity on the ground. This is not hype. The numbers back it up.

A Record Start to 2026

Dubai recorded its highest ever January for real estate transactions. According to DLD data reported by Gulf News, total property deals crossed AED 107 billion in just one month, making it the strongest January on record for the city’s property market

This was a major jump compared to January last year. It shows buyers are still active and confident, even after a strong 2025.

Most of this activity came from sales. More than 16,858 properties were sold in a single month, while mortgage activity also remained high. This suggests buyers are not only investors. Many are end users as well.

This kind of start usually sets the tone for the rest of the year. And for 2026, the tone looks positive.

Communities That Performed Strongly

Transaction data from January shows that activity was not limited to one or two areas. Several communities stood out in terms of value and deal volume.

Large land and development zones such as Al Rowaiyah First and Al Yalayis First recorded very high transaction values. These areas continue to attract developer interest and long term planning.

Established mixed use locations like Business Bay also remained very active. Its central location and strong rental demand keep it attractive for both buyers and investors.

Growth areas linked to future infrastructure, including parts of Meydan and Sheikh Mohammed bin Rashid City, also saw strong deal activity. These locations benefit from long term development plans and improving connectivity.

The data shows a clear pattern. Buyers are spread across prime locations, growth corridors, and large scale development zones (Source: Gulf News).

What is Driving This Demand

There are a few clear reasons why the market remains strong.

People are moving to Dubai. Population growth is ongoing and continues to support housing demand. More people means more homes are needed, both for renting and buying. Off plan projects continue to attract buyers. Flexible payment plans and wider choice make it easier for first time buyers and long term investors to enter the market.

Dubai also feels stable compared to many global cities. In uncertain times, buyers value safety and clarity. This continues to work in Dubai’s favour.

Prices are Rising But Not too Fast

Prices are expected to grow in 2026, but not in a risky or overheated way. Market outlooks suggest growth will remain steady rather than aggressive.

The market is no longer driven only by short term investors. More families and residents are buying homes to live in. At the same time, new supply is being delivered, which helps balance demand.

In simple terms. Prices are moving up but the market still feels healthy.

Rental Demand Remains Strong

Rental demand continues to perform well. Population growth and limited ready supply in key areas are keeping rents firm. Landlords are seeing strong occupancy levels. Many tenants are staying longer, which adds stability to the rental market.

For investors, this means rental income in 2026 remains attractive in several communities.








Key January 2026 Numbers at a Glance

MetricJanuary 2026Total transaction valueAED 107.9 billionTotal number of dealsAround 21,800Sales transactionsOver 16,800Year on year value growthAround 86% Market sentimentStrong and active

(Source: Dubai Land Department via Gulf News)

What This Means Going Forward

The early signs for 2026 are clear. The market is active and the buyers are confident. Demand is real, not forced.

This does not mean prices will rise everywhere at the same pace. Some locations and communities will perform better than others. Quality, location, and long term planning will matter more.

  1. For end users, the market still offers choice.
  2. For investors, the market still offers returns.
  3. For the city, it shows long term confidence.

The key takeaway is simple. Dubai real estate in 2026 is not slowing down. It is moving forward in a more balanced and mature way.