Dubai’s ultra-prime residential property market continued to defy regional uncertainty in the first half of 2026, with sales of homes worth more than $10 million climbing 23 per cent year-on-year to reach $6 billion, data showed on Monday.
According to Engel & Völkers research, the strong performance came despite a period marked by geopolitical tensions in the region, including the Iran conflict, which prompted some buyers and investors to delay decision-making. Yet demand at the top end of Dubai’s property market remained remarkably resilient, underlining the emirate’s growing appeal as a safe haven for global wealth.
A total of 320 residential properties valued above $10 million changed hands during the first six months of the year, while the ultra-prime segment accounted for 9.7 per cent of Dubai’s total residential sales value. The market’s resilience was particularly notable given that the wider property sector experienced a more measured trading environment after a strong start to the year.
Heightened regional uncertainty from late February led to greater caution among buyers, with transaction activity moderating through subsequent months, the report noted. However, activity began recovering by June as sentiment improved. Dubai still recorded 80,509 residential transactions worth a combined Dh226.5 billion during the period, reflecting continued demand from domestic and international investors.
Daniel Hadi, CEO of Engel & Völkers Middle East, said: “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.”
He added: “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.”
Dubai’s luxury market continued to attract high-net-worth individuals seeking waterfront properties, privacy and lifestyle-led communities. Major transactions were recorded across Jumeirah, Jumeirah Asora Bay and the Dubai Water Canal, highlighting sustained demand for premium residences in some of the city’s most prestigious locations. The report also noted that emerging luxury communities are increasingly competing with established prime destinations as affluent buyers seek new investment opportunities.
The commercial property market also posted record figures, reinforcing confidence in Dubai’s broader economic outlook. Commercial sales reached Dh62.2 billion across 6,470 transactions, the highest first-half level on record. Office sales rose 35.3 per cent year-on-year to 2,570 transactions, while retail deals jumped 50.2 per cent to 853 transactions.
One of the standout trends was the surge in off-plan commercial investment. The value of off-plan commercial sales soared from Dh3 billion in the first half of 2025 to Dh17 billion in the same period this year, as investors targeted new Grade A office developments, retail space and mixed-use business districts.
Looking ahead, Engel & Völkers said Dubai’s long-term fundamentals, including population growth, global capital inflows, economic diversification and infrastructure investment, continue to support demand across both residential and commercial real estate markets despite lingering geopolitical risks.
Source: Khaleej Times