Dubai property market holds firm 

Investor confidence returned quickly as residential demand stayed resilient despite West Asia tensions

PROPERTY PULSE

Dubai's residential property market has demonstrated remarkable resilience despite geopolitical tensions in West Asia, with strong investor demand and transaction activity reinforcing the emirate's position as a preferred global real estate destination, according to Anarock’s report, ‘Dubai Real Estate: Built on Vision. Proven by Numbers’.

The report says Dubai recorded residential transactions worth AED 225.7 billion during the first half of 2026, even as the region witnessed heightened geopolitical uncertainty. Residential prices softened by only 4-7 per cent during the February-April conflict period before demand recovered steadily as investor confidence returned.

Aayush Puri, CEO, residential, Middle East, said the correction was largely driven by sentiment rather than market fundamentals. While geopolitical tensions briefly affected buyer sentiment during March and April 2026, the correction was largely sentiment-driven, not structural. Residential prices softened by just 4-7 per cent during the February-April period, significantly outperforming the DFM Real Estate stock index, he said.

The report attributes Dubai's resilience to strong structural drivers, including sustained population growth, continued overseas investment and government initiatives such as the expanded Golden Visa programme. During 2025, Dubai welcomed around 470 new residents every day, while residential sales touched a record AED 547 billion across more than 206,000 transactions.

Buyers from over 150 countries participated in the market, with Indians accounting for the largest share at 22 per cent. Anarock expects Dubai's residential market to remain on a growth trajectory through 2026, projecting 4-7 per cent price growth under its base-case scenario, with stronger gains possible if regional stability improves further.

The report says renewed escalation of the West Asia conflict remains the principal downside risk, but Dubai's housing market has once again demonstrated its ability to withstand external shocks while maintaining long-term investment momentum.

Sentiment revival

• H1 transactions reached AED 225.7 bn.
  
• Market remained resilient amid tensions.
  
• Indians were the largest buyer group.
  
• Prices corrected only 4-7%.
  
• Anarock sees continued growth.