February offered a clear reminder that Dubai’s property market isn’t slowing down, it looks to be settling into a more balanced phase after a really strong start to the year.
Based on Dubai Land Department (DLD) data, total property sales reached AED 60.15 billion in February 2026. This represents a 17% decrease month-on-month, but still an 18% increase compared to February 2025.
This shift from January isn’t unexpected or concerning. From experience we know that the beginning of the year often sees a surge in activity, typically from international buyers and investors re-entering the market. What we like to look at is the underlying trend, and that remains firmly positive.
Transaction volumes were up 5% year-on-year, while average property prices increased by 12% annually, reinforcing continued demand and sustained upward pressure on values.
Residential property continues to dominate the market, accounting for 91% of all transactions and 75% of total sales value. Within this, apartments are playing a key role in maintaining momentum. The segment recorded 2% growth in transaction value month-on-month and 14% year-on-year, alongside 3% growth in volume month-on-month and 8% annually.
This steady performance reflects ongoing demand for more accessible entry points into the market, particularly from first-time buyers and those investors who are looking at rental yields.
The secondary (also known as ‘ready property’) market is also strengthening. Resale prices increased 15% year-on-year, with transaction volumes rising month-on-month which is a strong indication that buyers are not solely focused on off-plan opportunities, but are actively targeting completed homes – and this is to be expected with the number of families who are moving to Dubai to settle and start their new lives in the Emirate.
Villa and townhouse activity softened slightly compared to January’s spike, but the broader trend remains strong. Prices in this segment are still up 36% year-on-year, and while they do account for a smaller share of transactions, they represent a significant proportion of overall market value, reflecting continued demand for larger, family-oriented homes.
A notable shift can also be seen in the rental market. February recorded a decline in rental contracts month-on-month, with renewals also easing. This is partly driven by tenants transitioning into homeownership, alongside increased handovers from recent off-plan developments that are now entering the market.
Overall, February reflects a market that is evolving rather than declining.
While short-term fluctuations are natural, the fundamentals remain strong. For buyers and investors, this creates opportunity across different segments of the market.
- Apartments continue to offer accessible entry points.
- Ready properties are seeing renewed demand.
- Commercial assets are emerging as a serious area of growth.
Overall, Dubai’s real estate market is becoming more mature and more balanced.
Data source: Dubai Land Department (DLD), February 2026 transaction data
Analysis: Liv Squared Properties
