Dubai Real Estate Market Insights: Week 1, March 2026

Executive Snapshot 

Dubai’s real estate market entered March with a moderate slowdown in transaction activity. During the first week, the market recorded 2,402 sales transactions totaling AED 8.29 billion. Although transaction volumes fell by 45% compared with Week 1 of February and 17% relative to January, the smaller decline in transaction value indicates that higher-ticket deals continued to take place despite lower volumes. 

Stable pricing indicators, sustained absorption in the off-plan segment across multiple developers, and a rental market dominated by renewals suggest that the slowdown reflects a temporary adjustment in transaction velocity rather than weakening demand fundamentals. 

 Key Market Indicators 

 Sales Market: Off-Plan Leads Activity, Ready Properties Maintain Stability 

The off-plan segment continued to dominate transaction volumes during Week 1, generating 1,657 transactions worth AED 5.31 billion. This represented roughly 69% of total sales activity and 64% of total transaction value. 

Investor demand for under-construction properties remains strong, supported by flexible payment plans offered by developers and long-term investment outlooks. 

Meanwhile, ready property sales recorded 745 transactions valued at AED 2.98 billion, providing steady liquidity in the secondary market and largely reflecting activity in established communities developed by major master developers.  

Residential Market: Apartments Drive Activity, Villas Command Higher Ticket Sizes 

Residential real estate remained the dominant component of overall market activity, with 2,270 transactions totaling AED 6.99 billion, reflecting an average price of AED 1,923 per square foot. 

Within the off-plan segment, 1,618 residential transactions generated AED 5.01 billion in value. Apartments averaged AED 2,109 per square foot, while villas averaged AED 1,405 per square foot. The higher pricing levels for apartments highlight strong demand in urban communities offering lifestyle amenities and accessibility. 

The ready residential segment recorded 652 transactions valued at AED 1.98 billion. Notably, ready villas averaged AED 2,025 per square foot, exceeding both ready apartment pricing (AED 1,617 per square foot) and off-plan villa pricing. This reflects continued end-user willingness to pay a premium for completed homes in established neighborhoods offering immediate occupancy. 

Serviced and hotel apartments achieved the highest average price levels at AED 2,735 per square foot, highlighting niche demand within the hospitality-linked residential segment.  

Mortgage Market: A Key Indicator of End-User Demand 

Mortgage activity remains one of the clearest indicators of genuine end-user participation within the property market. During Week 1, 633 mortgage transactions were recorded with a total value of AED 2.57 billion, accounting for approximately 26% of overall sales transactions and 31% of total sales value. 

Importantly, almost all mortgage transactions were concentrated in completed properties, with only five off-plan mortgage deals recorded throughout the week. 

Within the residential segment, 533 mortgage-backed transactions worth AED 1.25 billion were completed at an average price of AED 1,076 per square foot, significantly below the overall residential average of AED 1,923 per square foot. 

Apartments represented 338 mortgage transactions, while villas accounted for 166 deals. The relatively strong mortgage participation in villa purchases suggests family-driven end-user demand, reinforcing the long-term strength of the ready housing segment. 

In contrast, most off-plan acquisitions continue to be equity-funded, demonstrating a healthy separation between investor capital and leveraged end-user purchases.  

Residential Rentals: Stability Driven by Renewals 

Dubai’s residential rental market recorded 11,479 contracts with a combined value of AED 1.03 billion. Lease renewals significantly exceeded new tenancy agreements, with 7,627 renewals compared to 3,852 new leases, reflecting strong tenant retention and stable occupancy levels. 

New apartment leases averaged approximately AED 156 per square foot annually, while renewed leases averaged AED 176 per square foot, suggesting gradual rent adjustments during contract renewals. 

Villa rentals demonstrated even stronger pricing momentum. Renewed villa leases averaged AED 836 per square foot annually, compared with AED 693 per square foot for new leases, highlighting continued demand for family-oriented housing within suburban communities. 

Across all property types, the rental market recorded 18,013 contracts totaling AED 1.61 billion. Although volumes declined 23% compared with February, rental values increased 47% compared with January, reinforcing the strength of Dubai’s occupier-driven housing demand.  

Commercial Market: Continued Confidence in Office and Retail Assets 

Commercial property sales remained stable with 63 transactions valued at AED 397 million, achieving an average price of approximately AED 2,903 per square foot. 

Off-plan commercial assets showed particularly strong performance. Off-plan offices averaged AED 3,242 per square foot, while retail units averaged AED 2,479 per square foot. Interestingly, off-plan commercial pricing exceeded ready asset pricing across both categories, highlighting investor confidence in future commercial growth. 

Commercial leasing activity also remained robust. The market recorded 6,480 rental contracts totaling AED 571 million, averaging AED 183 per square foot annually. 

Retail renewals achieved higher rental rates at AED 294 per square foot, compared with AED 234 per square foot for new leases, indicating business stability among existing tenants rather than aggressive expansion. 

Office spaces and retail units dominated leasing activity, while labour accommodations and warehouses maintained consistent demand, reflecting continued operational activity across Dubai’s broader economy.  

Community Spotlight: Areas Driving Market Activity 

Leading Off-Plan Apartment Communities 

Jumeirah Village Circle maintained its position as Dubai’s most liquid mid-market off-plan hub, with an average price of AED 1,430 per square foot. The slight price decline reflects market normalization after earlier strong activity rather than weakening demand. 

Dubai South recorded the highest price growth at +5%, reflecting increasing investor interest in emerging growth corridors aligned with Dubai’s long-term expansion strategy. 

Dubailand Residence Complex and Motor City also recorded moderate price growth, highlighting sustained investor demand for mid-market suburban communities offering relative affordability and future infrastructure potential.  

Leading Ready Apartment Communities 

JVC again demonstrated strong performance in the secondary market with a 7% price increase, reinforcing its liquidity across both primary and resale segments. 

Dubai Marina recorded the largest price growth at 26%, reflecting sustained demand for established waterfront living environments. 

Meanwhile, Discovery Gardens and International City continued to attract affordability-focused buyers, with International City showing gradual price strengthening despite lower overall price levels. 

Business Bay and Downtown Dubai experienced short-term price adjustments but continue to maintain premium market positioning, where transaction volumes fluctuate while pricing stability remains intact. 

Week 1 Market Takeaway 

The first week of March 2026 signals a market transitioning from peak transaction momentum toward a more sustainable and balanced phase of growth. Three key structural trends continue to support Dubai’s real estate market: 

 As Dubai’s property cycle gradually shifts from rapid expansion toward stabilization, data-driven analysis becomes increasingly important for investors and market participants. 

At Reliant Surveyors, our insights are supported by 48 years of valuation expertise and market intelligence, enabling investors, developers, and institutions to interpret market movements with clarity and confidence. 

Through independent analysis and advisory services, we translate complex real estate data into actionable insights that support informed investment decisions. 

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