Despite Broad Market Dip, Dubai’s Commercial Market and Apartments Outperform in February 2026

Thursday 12th March, Dubai, UAE - Dubai Land Department reported AED 60.15 billion in total sales transaction value for February 2026, representing a 17% decrease month-on-month but an 18% increase year-on-year. The month-on-month decline is largely attributed to the strong start to the year, with January traditionally seeing elevated transaction levels as new residents relocate to Dubai. While most data points across the market were down compared to January, the overall trajectory remains positive, with the average sales price increasing by 12% year-on-year and sales transaction volume rising by 5% annually.

Residential real estate continues to dominate the market, accounting for 91% of the total sales volume and 75% of total sales transaction value, with the remaining share made up of commercial real estate. The commercial sector in particular has seen significant growth, especially in office space, where transaction volumes increased by 94% year-on-year and the average price rose by 13% month-on-month. Retail space and warehouses also recorded strong performance, with the average price increasing by 72% year-on-year.

The secondary market has also continued to strengthen, with the average price of resale properties increasing by 15% year-on-year and transaction volumes rising by 6% month-on-month, highlighting continued demand for ready properties. Villa and townhouse sales saw a slight drop in February following the surge in activity during January, although the segment continues to show strong long-term growth with average prices increasing by 36% year-on-year. While villas and townhouses made up only 18% of the total transaction volume in February, they accounted for 43% of the total transaction value, when compared to off-plan.

The apartment segment saw modest growth from January to February, with transaction value increasing by 2% and volume rising by 3% month-on-month. Year-on-year, the impact has been more significant, with values rising by 14% and transaction volume increasing by 8%. This growth is largely driven by the continued launch of off-plan apartment developments and the substantial supply entering the market.

Within the rental market, February proved to be a slightly weaker month, with the number of rental contracts declining by 27% month-on-month. Renewals also fell by 36% month-on-month and 27% year-on-year. This can be partly attributed to a growing number of residents transitioning from renting into homeownership, as well as investors who purchased off-plan properties in recent years now moving into newly handed-over homes. The average off-plan property price has increased by 57% year-on-year, reflecting the continued strength of Dubai’s off-plan market. Over the same period, sales volume has risen by 13% and total transaction value has increased by 17%, demonstrating sustained demand across both investors and end users.

Off-plan properties continue to account for a significant share of market activity, making up 65% of total transaction volume, compared to 35% in the secondary market. In terms of transaction value, the split is more balanced, with off-plan accounting for 52% and secondary properties representing 48%.

The growing dominance of off-plan sales highlights strong investor confidence in Dubai’s long-term growth and future development pipeline, reinforcing the city’s position as one of the world’s most dynamic and forward-looking real estate markets.

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