Dubai Cash Buyers Drive Sales
Dubai's property market maintains strong momentum with first-time sales and cash buyers dominating early 2026. The market is seeing high demand for luxury projects and off-plan properties despite regional tensions. UAE real estate remains resilient amid Middle East conflicts, while Abu Dhabi attracted $893 million in foreign real estate investments this year.
The momentum from a record-breaking 2025, which saw real estate transactions hit an all-time high of Dh917 billion, has powerfully continued into the new year. For the first two months of 2026, total sales transactions surged 38.8% in value to Dh133.3 billion compared to the same period last year. In February 2026, cash was king in the secondary market, with just over 69% of all resale transactions conducted in cash. The primary market for new properties, however, represented the bulk of activity, accounting for 11,351 sales transactions worth Dh42.1 billion, more than double the value of the resale market's Dh18.6 billion. While geopolitical tensions have introduced a note of caution, leading some buyers to pause and adopt a more analytical approach, it has not weakened overall demand. Instead, the UAE's geopolitical neutrality and reputation as a safe haven continue to attract capital and new residents, sustaining demand for property as a long-term base for living and business. This activity isn't confined to the ultra-luxury segment. In February, properties valued between Dh1-2 million accounted for the largest share of sales (32.41%), followed by those under Dh1 million (24.1%). The most active areas by transaction value in the preceding year included Business Bay and Jumeirah Village Circle (JVC). Abu Dhabi's market is also experiencing a significant boom, ending 2025 with a record Dh142 billion in real estate transactions, a 44% increase in value from the previous year. The UAE capital saw foreign direct investment in its real estate sector grow by 13% in 2025, with notable contributions from investors from Russia, China, the U.K., and the U.S. Looking ahead, buyer preferences are shifting towards quality and long-term value. Proximity to new infrastructure, such as the Dubai Metro's Blue Line, is becoming a key determinant for investment decisions, boosting demand in areas like Dubai Creek Harbour and Dubai Silicon Oasis. This focus on fundamentals signals a maturing market driven more by data and logic than by hype.
