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A report from the Emirates News Agency highlighted that the UAE real estate sector maintains its momentum, driven by strong demand, economic resilience. The assessment drew on data from the second quarter of 2025 but the trend has extended into 2026 with even stronger figures emerging from both Dubai and Abu Dhabi. This performance reflects the sector’s role as a key pillar of the national economy that has diversified away from traditional sectors.
Dubai Land Department figures show real estate transactions in the emirate reached AED 252 billion in the first quarter of 2026, a 31 percent increase from the previous year, alongside a 6 percent rise in the number of deals to 57,744. Of these, residential transactions totaled 45,221 units valued at AED 137.31 billion with off-plan properties accounting for 75.3 percent of the value. The department’s data also indicated heightened activity in mortgages and overall procedures that exceeded 718,000 during the quarter.
According to the Abu Dhabi Real Estate Centre, the capital’s market achieved AED 142 billion in total transaction value for 2025, representing a 44 percent increase, while residential sales rose 67 percent to AED 76 billion. Foreign investment contributed 69 percent of the overall growth in Abu Dhabi, where demand for master-planned communities has transformed the market landscape. Such figures demonstrate how both major emirates are reinforcing the UAE’s position in regional real estate.
Projections from Statista place the value of the UAE real estate market at nearly AED 2.56 trillion, equivalent to $698 billion, by the end of 2026. This anticipated expansion builds on consistent year-on-year gains observed since the post-pandemic recovery phase. Market consultants have noted that improved regulatory frameworks and economic stability have been instrumental in attracting international buyers and tenants.
Additional data from real estate advisory firms reveal that average transaction prices for off-plan homes in Dubai stood at AED 2,030 per square foot in the first quarter of 2026, up more than 12 percent year on year. Ready homes saw prices rise by nearly 6 percent to AED 1,691 per square foot over the same period. These price movements coincide with increased mortgage activity that grew 16 percent in volume during the quarter.
The sustained interest in UAE properties extends to the commercial sector where leasing demand has remained firm in prime locations. Industrial and logistics spaces have also seen uptake driven by supply chain expansions and e-commerce growth across the region. Overall activity levels point to a mature market that balances new supply with robust absorption rates.
