Dubai's ultra-prime residential market kept growing through the first half of 2026, even as geopolitical tensions tied to the Iran conflict rattled sentiment across the wider region. Homes priced above 10 million US dollars generated roughly 6 billion dollars in sales, according to research from Engel & Volkers cited by Khaleej Times, up 23 per cent from the same period a year earlier.
A total of 320 residential properties above the 10 million dollar mark changed hands in the first six months of the year. That segment alone accounted for 9.7 per cent of Dubai's total residential sales value, a disproportionate share for a slice of the market that represents a tiny fraction of total transaction volume.
Ultra-prime sales (above 10 million US dollars): 320 transactions, 6 billion US dollars, up 23 percent year on year Share of total residential sales value: 9.7 percent Total residential transactions: 80,509, worth Dh226.5 billion Source: Engel & Volkers research, cited by Khaleej Times
Why Wealthy Buyers Kept Signing
The report noted that heightened regional uncertainty from late February pushed some buyers toward caution, and transaction activity moderated through the following months. Momentum picked back up by June as sentiment improved, a pattern that suggests hesitation rather than genuine retreat from the market.
Daniel Hadi, CEO of Engel & Volkers Middle East, said the first half of 2026 demonstrated the resilience and increasing maturity of Dubai's real estate market. He noted that buyers became more considered during the period of regional uncertainty, but that demand remained present and activity began to strengthen again as conditions improved.
Hadi added that what continues to give the firm confidence is the depth of the market, from growing international demand for exceptional ultra-prime homes to sustained activity across the wider residential sector.
Where the Money Is Going
Major ultra-prime transactions were concentrated in Jumeirah, Jumeirah Asora Bay and along the Dubai Water Canal, all established addresses for waterfront and privacy-led living. That pattern tracks with DSD's earlier report on a Dh166 million off-plan apartment sale, which pointed to the same resilient demand at the very top of the market. The Khaleej Times report also flagged a wider trend worth watching: emerging luxury communities are increasingly competing with these established postcodes as affluent buyers look for new investment angles rather than simply following the crowd to legacy addresses.
Commercial Property Is the Quieter Story
While ultra-prime homes captured the headline, Dubai's commercial property market posted its strongest first half on record. Commercial sales reached Dh62.2 billion across 6,470 transactions. Office sales rose 35.3 per cent year on year to 2,570 transactions, and retail deals jumped 50.2 per cent to 853 transactions.
| Segment | H1 2026 Volume | Year on Year Change |
|---|---|---|
| Office sales | 2,570 transactions | +35.3% |
| Retail sales | 853 transactions | +50.2% |
| Off-plan commercial sales value | Dh17 billion | up from Dh3 billion in H1 2025 |
The sharpest shift was in off-plan commercial investment. The value of off-plan commercial sales climbed from Dh3 billion in the first half of 2025 to Dh17 billion in the same period this year, as investors targeted new Grade A office developments, retail space and mixed-use business districts, a trend that lines up with CBRE's reporting on surging UAE office rents even as residential and hospitality demand cooled elsewhere.
A near sixfold jump in off-plan commercial sales points to investors betting on Dubai's next generation of office and mixed-use stock, not just today's inventory. Rising office demand tracks with the steady influx of financial services, AI and wealth management firms setting up in DIFC and other free zones. For real estate-adjacent startups and proptech founders, both ends of this market, ultra-prime residential and Grade A commercial, are signalling sustained capital deployment.
The Outlook
Engel & Volkers said Dubai's longer-term fundamentals, including population growth, global capital inflows, economic diversification and infrastructure investment, continue to support demand across both residential and commercial real estate despite lingering geopolitical risks. For a market that some assumed would cool after several years of rapid growth, the first half of 2026 suggests demand is broadening rather than narrowing.
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