Dubai’s real estate market moderated in February following January’s exceptional opening, with AED 61.4 billion in total sales value across 17,120 transactions. This represents a 15.3 percent monthly adjustment from January’s record AED 72.5 billion, yet maintains robust annual growth of 20.4 percent compared to February 2025’s AED 51 billion. Transaction volumes held relatively steady, dipping just 2.0 percent month-on-month while advancing 6.3 percent year-on-year, indicating a market recalibrating toward sustainable velocity rather than experiencing demand erosion. Apartments emerged as February’s standout performer, flipping the narrative from January’s villa surge. The segment recorded 13,081 deals worth AED 27.2 billion, marking a 2.0 percent volume increase and 3.0 percent value gain month-on-month. Off-plan apartments commanded AED 2,063 per square foot—a new threshold—while maintaining absorption above 8,900 units. Buyer concentration remained in mid-market hubs including JVC, Business Bay, and Dubailand Residence, where flexible payment plans and rental yield security continued driving investor decisions. The shift toward apartment dominance reflects both seasonal normalization and sustained end-user appetite for accessible entry points in established communities. The villa segment underwent a sharp correction after January’s peak performance, recording 2,792 transactions worth AED 18.7 billion. This 30.2 percent value contraction and 19.0 percent volume decline from January’s exceptional highs represents a return to normalized trading levels rather than fundamental weakness. Off-plan villa sales settled at 1,994 units (AED 13.9 billion), while ready stock contributed 798 deals. Demand persisted in Damac Hills 2, Mirdif, and Dubai Hills Estate, though at reduced velocity following the previous month’s high-value inventory releases. The adjustment brings villa activity in line with historical Q1 averages while maintaining year-on-year pricing premiums. Commercial properties demonstrated resilience, posting 819 transactions worth AED 4.2 billion—a 5.0 percent value increase despite flat volume. Office assets in Business Bay and DIFC maintained investor interest through stable occupancy above 90 percent, while retail units in high-footfall corridors sustained yield premiums. Industrial leasing bucked broader trends with a 2.0 percent transaction increase, reflecting continued logistics absorption in Dubai South. The segment’s value growth amid volume stability indicates improving per-unit pricing and sustained institutional confidence in income-generating assets
Leasing activity normalized seasonally, with 37,185 new rental contracts registered—down 13.8 percent from January’s post-holiday surge but maintaining healthy underlying absorption. Apartment leases moderated to 19,856 contracts, while villa registrations settled at 2,207. The correction aligns with historical first-quarter patterns, with JVC (1,379 leases) and International City (1,135) retaining dominance in the residential rental market. Commercial leasing softened to 15,122 contracts as year-end renewals cycled through, though office demand in central business districts showed relative stability. Off-plan sales continued anchoring market liquidity, capturing 64 percent of residential volume (10,974 transactions) and 72.6 percent of value (AED 33.3 billion). While down from January’s peak, the segment maintained strong pricing power with average rates reaching AED 2,063 per square foot and transaction sizes averaging AED 3.05 million. Damac Island City retained leadership with 912 sales, supported by Meydan City (632) and Dubai Islands (620). Cash transactions dominated at approximately 79 percent of residential deals (12,491 cash versus 3,382 mortgage), though villa financing maintained a 36 percent share, indicating sustained end-user family demand. The market enters March with substantial new supply—11,036 apartments and 2,005 villas scheduled for handover—against a backdrop of firm pricing and steady transaction velocity. February’s data confirms Dubai’s real estate sector has transitioned from January’s explosive villa-led growth into a more balanced, apartment-driven expansion phase. With population growth sustaining rental demand and developer launches maintaining disciplined absorption rates, the fundamental outlook remains constructive despite the monthly value moderation. The sector appears positioned to absorb incoming inventory efficiently while maintaining the pricing gains established through early 2026
