🏙️ Dubai opens 2026 with strong sales, but growth is cooling

Dubai’s residential market recorded more than 45,000 transactions worth AED 137 billion in Q1 2026, as price and rental growth began to moderate. CBRE said off-plan deals did much of the heavy lifting as the market entered the year with strong trading volumes.

CBRE’s UAE Real Estate Market Review Q1 2026 said residential activity remained elevated across the emirate, but the pace of growth is easing as more supply is expected later in the year. The report pointed to a market that is still liquid, yet increasingly shaped by expectations of new inventory and more measured pricing.

Why it matters for investors

For investors, the latest figures suggest Dubai is still delivering transaction depth, but the easy phase of broad-based price acceleration may be fading. A market driven heavily by off-plan sales can support volumes, but it also raises sensitivity to delivery timelines, absorption rates and future supply pressure. Moderating rents and prices may improve entry points for capital seeking yield, while also narrowing the scope for short-term capital gains.

➡️ Off-plan sales remained the main engine of Q1 activity.

➡️ Expected supply later in the year could temper pricing momentum.

The data leaves Dubai positioned as a market with strong liquidity, but one where investor returns are likely to depend more on asset selection and execution than on sector-wide appreciation.