Dubai real estate market shifts toward asset selectivity

The Dubai real estate market is undergoing a transition in 2026, moving from a period of rapid, broad growth to a more nuanced landscape characterized by increased selectivity among investors.

Following a record-breaking 2025, where residential transactions reached 205,431 worth AED 544.2 billion, recent data indicates a slowdown in transaction volumes. CBRE’s Q2 2026 review shows residential transaction volumes fell 29% year-on-year, with ready-property transactions declining by 42% and off-plan transactions by 23%.

The market is currently diverging into three distinct tracks: a broad residential market sensitive to supply and competition; an off-plan market driven by flexible payment plans; and a luxury segment influenced by global wealth flows and scarcity. While transaction volumes have decreased, prices remain resilient in certain segments, and investors are shifting their focus from general market growth to specific asset selection.