Engel & Völkers Middle East reported that Dubai’s real estate market has transitioned into a more mature and sustainable growth phase following a period of rapid acceleration. Activity remains strong, with a continued focus on luxury residential units and rising demand for quality, while the availability of prime commercial assets—particularly Grade A offices—has declined.
The residential real estate sector recorded a 20.8% year-on-year increase in transactions, reaching 15,981 deals with a total value of AED 55.9 billion, marking a 55.3% growth in value. The luxury segment delivered standout performance, with more than 1,000 transactions exceeding AED 10 million in January alone.
Prestigious locations such as Palm Jumeirah and emerging communities like The Oasis highlighted the diversity within the high-end segment. New development projects also continued to stimulate the market, while rental yields rose to 6.9%.
In the commercial sector, sales transactions reached 1,446, up 23.7% compared to last year, with total value surging 82% to AED 17.1 billion. The office segment was particularly prominent, with the value of offices sold jumping 296% and transaction volumes increasing by 133%. However, the shortage of ready-to-move-in office space has driven growing interest in off-plan and under-development projects.
Daniel Hadi, CEO of the company, stated that the market is undergoing a maturity cycle characterized by a stronger emphasis on quality and long-term investment strategies. The residential sector is experiencing sustained growth in premium transactions, while the commercial sector is strengthening its activity through early acquisition of projects under development.
Dubai’s market demonstrates differentiated momentum, as premium residential and commercial assets continue to reinforce their position as fundamental pillars of growth, providing depth, liquidity, and confidence for investors in the years ahead.
