UAE Real Estate Faces Mixed Trends in Early 2026
The UAE residential real estate sector demonstrated notable resilience during the first quarter of 2026, navigating a landscape marked by moderated price growth and shifting investor sentiment due to regional geopolitical factors. While transaction activity experienced an initial dip—with weekly values in Dubai plummeting by nearly half during peak instability—the market showed signs of stabilization as confidence gradually returned. Experts at JLL have highlighted a clear divergence in performance, noting that while hospitality faced significant hurdles, the living and logistics sectors remained steady. This resilience is largely attributed to proactive government incentives and a focus on long-term fundamentals that continue to anchor the broader economy.
Within the residential landscape, a nuanced picture has emerged across the UAE’s two primary hubs. Dubai saw a 9.5% uptick in off-plan sales, signaling sustained appetite from investors, even as secondary market activity softened by 8.2%. Meanwhile, Abu Dhabi experienced a surge in transaction volumes fueled by a wave of new project launches. Although annual price growth has slowed to a more sustainable range of 8% to 12%, developers are increasingly using targeted incentives and flexible payment plans to move existing inventory. As the market looks toward the delivery of approximately 59,000 new units throughout 2026, the sector appears to be settling into a period of healthy adjustment rather than decline, supported by ongoing demand and careful strategic planning.