According to the latest market analysis from Engel & Völkers Middle East, Dubai’s ultra-prime residential property market reached new heights during the first half of 2026.
320 residential properties were valued above US $10m and were sold during the six-month period. This marked an increase of 23% year-on-year, with combined transaction value reaching US $6bn. Ultra-prime properties accounted for 9.7% of Dubai’s total residential sales value, demonstrating the increasingly significant role of high-value real estate within the wider market.
Following a strong start to the year, regional uncertainty from late February contributed to buyers and investors taking longer to make decisions, with transaction activity moderating through the middle of the half. As conditions improved, activity began to recover, reinforcing the resilience of underlying demand.
The ultra-prime performance came within a wider residential market that remained highly active during the first half of the year. Dubai recorded 80,509 residential sales with a total value of AED 226.5bn. Activity ranged in price points and continued to attract both domestic and international buyers.
Market conditions varied considerably over the six-month period. January and February began strongly, with transaction volumes ahead of the same period in 2025, before heightened regional uncertainty from late February contributed to more cautious buyer behaviour and lower activity through the following months. As conditions gradually improved, transaction volumes recovered in June, reinforcing the continued depth of demand across the market.
Despite the moderation in sales activity, property values remained resilient across much of Dubai. Performance was particularly strong within established villa communities and the prime residential segment, while buyers increasingly took a more measured approach to purchasing decisions, considering property quality, location, developer reputation and long-term value.
“The first half of 2026 demonstrated the resilience and increasing maturity of Dubai’s real estate market. We saw buyers become more considered during the period of regional uncertainty, but importantly, demand remained present and activity began to strengthen again as conditions improved.
“What continues to give us confidence is the depth of the market, from growing international demand for exceptional ultra-prime homes to sustained activity across the wider residential sector.”
Daniel Hadi, CEO, Engel & Völkers Middle East
Major transactions took place across some of Dubai’s most prestigious established and emerging locations. High-value sales across Jumeirah, Jumeirah Asora Bay and the Dubai Water Canal reflected continued demand for exceptional residences offering waterfront locations, privacy, architectural quality and access to world-class amenities.
The geographical spread of these transactions also reflects the continued expansion of Dubai’s luxury residential landscape. While established prime destinations remain highly sought after, a new generation of developments is creating additional opportunities for high-net-worth buyers seeking increasingly sophisticated homes and lifestyle-led communities.
