Indian and British expatriates continued to drive Dubai’s residential property market in the first half of 2026, helping transactions reach Dh225.7 billion despite regional geopolitical tensions, according to a new report by Anarock.
The consultancy found that buyers from more than 150 countries invested in Dubai’s housing market in 2025, with Indians accounting for the largest share at 22 per cent, followed by British buyers at 17 per cent and Chinese investors at 14 per cent.
The report said Dubai’s residential market remained resilient during the US-Iran regional conflict, with buyer confidence returning quickly after a brief slowdown. Residential transactions reached Dh225.7 billion in the first half of this year as the market recovered from the regional unrest.
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Overall residential prices averaged about Dh1,900 per square foot in the first half of 2026, up from Dh1,800 per square foot during the same period last year, representing a 6 per cent annual increase.
“While geopolitical tensions briefly affected buyer sentiment during March and April 2026, the correction was largely sentiment-driven – not structural,” said Aayush Puri, CEO of Residential, Middle East & CEO at Anarock Channel Partners, India.
“Residential prices softened by just 4-7 per cent in the February to April period, significantly outperforming the Dubai Financial Market Real Estate stock index, which crashed 34 per cent at its peak,” he noted, adding that it’s the widest sentiment-to-asset gap of any Dubai crisis on record.
Off-plan market dominates
Puri said the recovery was supported by strong market fundamentals, with off-plan properties accounting for between 70 and 77 per cent of residential transactions during the period, reflecting sustained buyer confidence despite short-term uncertainty.
The report found that weekly residential sales rebounded to as much as Dh10 billion after ceasefire efforts progressed, suggesting investors viewed the slowdown as temporary rather than a sign of weakening market fundamentals.
Dubai’s growing population also continued to support demand. The emirate added around 470 new residents a day in 2025, taking its population above 4.03 million.
The report noted that more than 129,600 new investors entered Dubai’s property market in 2025, up 23 per cent year-on-year. Around 80 per cent of transactions were cash purchases, reducing the market’s exposure to interest rate fluctuations.
Among buyers, 38 per cent purchased homes for their own use, while 28 per cent bought properties for rental income. Another 21 per cent invested to qualify for the UAE’s Golden Visa programme, while 13 per cent cited capital preservation as their main motivation.
Looking ahead, Anarock expects Dubai’s residential prices to rise by 4 to 7 per cent this year, supported by continued population growth, expanding international buyer demand and government initiatives. However, it said renewed regional conflict in the second half of 2026 remains the main downside risk to the market.
Source: Khaleej Times