Dubai property momentum broadens on stronger buyer-seller activity

emirates7 - -With strong demand and new listings, the market is poised for sustained activity, even as supply challenges loom

Dubai’s property boom is entering a new phase in 2026, with fresh data showing a surge in both buyer and seller activity — a rare dual momentum that signals sustained confidence in one of the world’s hottest real estate markets and suggests transaction volumes could remain elevated despite mounting supply concerns.

Online search behaviour, often viewed as a leading indicator of real estate sentiment, shows that interest from both sides of the market has strengthened markedly over the past six months, underlining the depth of demand supporting Dubai’s multi-year property rally.

Research by eXp Dubai based on Google Trends data shows search interest for “real estate agency” jumped 115 per cent between July 2025 and January 2026 compared with the previous six-month period, pointing to a sharp increase in potential sellers exploring listing opportunities.

At the same time, searches for “buy property” rose 16.2 per cent, indicating sustained buyer appetite even after several years of price growth.

The simultaneous rise in buyer and seller interest suggests Dubai’s property cycle is evolving from a pure demand-driven rally into a more balanced and mature market, with more homeowners and investors seeking to capitalise on strong prices while new buyers continue to enter.

“While much of the attention in the property market tends to focus on headline indicators such as house prices and transaction volumes, it is early indicators such as search behaviour that often provide some of the clearest insight into changing market sentiment,” said Dounia Fadi, managing director of eXp Dubai.

“Our latest research shows that both homebuyers and sellers remain highly engaged with the market, reflecting ongoing confidence in Dubai’s property sector."

The rising seller interest is being fuelled by strong capital gains achieved over the past four years, with Dubai residential prices having climbed more than 40 per cent since 2020, according to data from global consultancy Knight Frank.

Many long-term investors and homeowners are now considering partial profit-taking, encouraged by high liquidity and steady demand from end-users and overseas investors. At the same time, buyer demand continues to be underpinned by population growth, wealth migration and pro-business residency policies.

Dubai’s population crossed 3.8 million in late 2025 and is projected to exceed 4 million within two years, according to government estimates, creating sustained demand for both ownership and rental housing.

Dubai Land Department data that property transactions reached record levels in 2025, with total sales exceeding Dh520 billion and more than 170,000 deals completed — among the highest annual totals on record.

Off-plan properties continue to dominate activity, accounting for nearly 70 per cent of transactions as developers roll out new master-planned communities and branded residences.

Global real estate consultancy CBRE noted in a recent market that Dubai’s residential prices rose by about 12 per cent in 2025, with villa prices outperforming apartments due to continued demand from families and high-net-worth individuals relocating to the emirate.

While price growth has moderated from the double-digit surges seen in 2022 and 2023, the market remains firmly in expansion territory.

Analysts say the increase in seller activity is a healthy sign of a maturing cycle rather than a signal of weakness. More listings can improve market liquidity and provide greater choice for buyers, potentially stabilising price growth while sustaining transaction volumes.

“Dubai continues to attract global capital and talent, and this structural demand is keeping the market resilient,” said Faisal Durrani, Head of Middle East Research at Knight Frank.

“Even as more supply comes to market, demand depth remains strong enough to absorb new inventory in most prime and mid-market segments.”

Property Monitor data that new project launches may moderate in 2026 as developers manage rising construction costs and land prices, but delivery of previously announced projects will gradually increase housing stock over the next two years. This could help ease rental inflation, which surged in recent years, while keeping the sales market active.

Market watchers say that with both buyers and sellers stepping up activity and underlying economic fundamentals remaining strong, “Dubai’s property sector appears set to maintain its momentum into 2026, though with a more measured pace of price growth and a gradual shift towards a more balanced, sustainable market cycle.”