Dubai has a habit of confounding expectations, and the first half of 2026 proved no exception. With regional tensions unsettling the wider picture, buyers holding back and investors treading carefully, how the market would respond was an open question. The H1 2026 report published by Haus & Haus answers that question, and the picture is considerably stronger than many expected.
The report’s most striking observation is this: June brought a level of activity the market had not seen for months, and even that appears to be only the tip of the iceberg. Behind it sits a substantial pipeline of buyers, investors and tenants waiting for the right moment to re-engage.
Investor Confidence Is Written in the Off Plan Numbers
The most reliable measure of confidence in a market’s future is demand for property still under development. Off plan purchasing is, by its nature, an investment in tomorrow rather than today. And this segment continued to grow even as the wider market slowed:
| Segment | Transactions | YoY Change | Avg. Price (AED per sq ft) | YoY Change |
| Overall Market | 79,280 | -13.8% | 1,897 | +6.5% |
| Secondary | 22,607 | -39.4% | 1,681 | +8.9% |
| Off Plan | 56,673 | +3.7% | 1,981 | +2.1% |
The point worth noting: transaction volumes fell, yet prices per square foot rose. The average climbed from AED 1,782 to AED 1,897 in a single year. Fewer properties changed hands, but those that did were newer, higher-value stock. The report underlines another important detail: even the small number of sellers who accepted below asking price still, in most cases, walked away with a profit. This was not a market where anyone was forced to sell at a loss. In that respect, today’s picture bears no resemblance to past crisis periods, whatever some headlines may imply.
The buyer profile also points to a mature market: 67 per cent of purchases were completed with mortgage finance. This tells us the market rests on long-term, finance-backed genuine demand rather than speculative cash inflows.
A Decade Record in Lettings
While sales were finding their feet, lettings had already gathered pace. With only half the year behind us, 2026 has recorded the highest number of new rental contracts in a decade. According to DXB Interact, more than 177,000 new contracts were signed in the first six months, with January and June leading the way at 18,000 each.
| Property Type | Contracts | YoY Change | Avg. Rent (AED) | YoY Change |
| Overall | 272,522 | -4.8% | 87,496 | +5.3% |
| Apartment | 247,425 | -4.8% | 72,912 | +4.8% |
| Villa | 14,618 | +1.2% | 277,490 | +6.6% |
| Townhouse | 10,479 | -11.4% | 166,796 | +1.9% |
Villas stand apart here: the only category where both contract numbers and rents increased. It is a clear signal that family-driven, long-term residential demand remains firm. For income-focused investors, the message is equally clear: rents are rising across every segment.
In the final week of June, registered tenant enquiries surpassed the year’s previous peak entirely. People who had spent months on the sidelines moved quickly at the first sign of stability and recommitted to Dubai.
The Prime Segment: A Brief Pause, Then New Records
The year opened with two landmark transactions: AED 340 million on Jumeirah Bay Island and AED 350 million at Asora Bay, La Mer Jumeirah. Both ranked among the ten largest deals of the entire half. Activity at the very top of the market paused briefly in April; by June, Dubai was breaking records again.
In the second quarter alone, the Haus & Haus team closed six deals above AED 18 million, worth a combined AED 153.9 million. By transaction count, The Oasis (575 deals) and Dubai Hills Estate (251 deals) led the way, while on Jumeirah Bay Island and Naia Island, average deal values reach nine figures. The prime segment’s message is unambiguous: appetite for Dubai’s top end never left, and it has returned stronger.
Selective Growth on the Commercial Side
Office leasing volumes rose 4.1 per cent. Tighter unit availability is steering tenants towards longer lease terms, and a wave of new office developments will come through to meet that demand in the years ahead. In retail, rents per square foot climbed 6.3 per cent. Fewer but higher-value transactions show that quality retail space is becoming increasingly sought after.
What Does This Mean for Investors?
Dubai has emerged from a testing period in a position of strength. We are looking at a market where prices are rising, rents are at record levels, the prime segment is gathering pace and buyer registrations have surpassed the year’s peak. The turbulence many were bracing for proved to be a bump in the road rather than a turning point.
For investors looking to secure the right project at the right time, Dubai enters the second half of 2026 on firm ground.
Sources: Haus & Haus H1 2026 Dubai Real Estate Market Report; DXB Interact and Dubai Land Department (DLD) data.