Property Finder, the MENA region’s leading property portal, reports a record-breaking start to the year for Dubai’s property market, with a total transaction value increase of 63% year-on-year, hitting AED 72.4 bn – the highest in the emirate’s history – driven by a 90% surge in the primary market, supported by a 38% increase in secondary market values.
In terms of total transaction volumes, a 23% year-on-year increase was recorded, fueled by a 42% rise in primary transaction volumes, offsetting a slight drop of 1% in secondary volumes.
Off-plan demand in the primary market continues to rise, with January figures showing a 128% year-on-year increase in values, compared with a still-significant 49% increase in ready values. The secondary market is holding firm with a total year-on-year value increase of 38%, although here the off-plan segment dropped by 9%. The surge in primary off-plan values reflects robust investor and end-user confidence in upcoming high-quality projects.
Dubai’s secondary market demonstrated notable resilience in January, characterised by rising values despite a marginal dip in transaction volumes. The secondary market’s value increase of 38% year-on-year was driven primarily by the consistent performance of ready properties.
Ready properties remain the secondary market’s backbone, accounting for nearly 89% of total value in this segment. Ready unit values jumped 48% year-on-year, with transaction volumes increasing by 8%. The off-plan secondary segment saw a cooldown, with values declining by 9% and volumes dropping by 27% year-on-year.
Overall, while total secondary transaction volumes cooled slightly, recording a 1% drop, the substantial increase in total value suggests higher price points and sustained demand for assets offering immediate occupancy or strong rental yields.
Consumers continue to favour apartment livingPractical, affordable apartment accommodation is popular for renters and buyers, again continuing the trend from 2025. Among renters, apartments accounted for 78% of searches in January, compared to 22% for villas and townhouses. Among buyers, 59% were seeking the convenience of apartment living, while 41% of buyer searches were for villas.
While studios and one-bedroom units are gaining market share, 70% of apartment buyers are looking for one- or two-bedroom properties. This indicates that rent increases over the past year have prompted single people, couples and small families to consider more compact, affordable options.
Among apartment buyers, about 70% searched for one- and two-bedroom units, confirming a strong preference for mid-sized, budget-conscious homes in well-connected communities.
In January, new enquiries jumped by more than 25% compared to December 2025. This surge signals renewed buyer engagement, underpinned by significant tailwinds in the mid-to-high income segments.
More than two-thirds of enquiries originated from individuals earning above AED 40,000 per month, reflecting confidence among affluent buyers and sustained demand for premium properties, with villas and townhouses proving popular in this demographic. Among buyers earning less than AED 40,000 per month, apartments are the preferred entry point into the Dubai property market.
Supporting this trend, Dubai Land Department data reveals that more than 80% of mortgage-backed transactions are secured against apartments, highlighting their key role as an accessible route into the financed market, while the villa segment stays competitive and supply-limited.
The market remains predominantly end-user led, with owner-occupiers accounting for more than 85% of transactions. While financed investor activity has remained steady, a wave of expected property handovers is projected to re-energise this segment. Rising equity and the potential for reinvestment are expected to lure investors back, particularly toward off-plan opportunities.
Dubai’s mortgage market remains healthy, with volumes and values surging 30% year-on-year. This momentum is fuelled by improving affordability as the average three-month EIBOR cooled from 4.0% to 3.5%, increasing borrowing capacity.
With a significant number of property handovers expected this year, mortgage utilisation will remain a primary driver of market activity. Overall, the outlook is highly constructive, supported by resilient end-user demand and a favourable interest rate environment that enables buyers to access higher-value properties.
Cherif Sleiman, Chief Revenue Officer, Property Finder commented, “January has delivered a historic start to the year with a record-breaking transaction, a clear sign that Dubai’s real estate market continues to attract serious, confident buyers. What stands out is the continued appetite for high-quality off-plan projects alongside strong rental demand, showing that investors and residents alike are responding to value and long-term potential. This level of engagement across segments and property types reflects a market that is both mature and resilient, capable of sustaining momentum while adapting to evolving buyer priorities.”
