Indian and British buyers continued to drive Dubai's residential property market in the first half of 2026 despite regional geopolitical tensions, helping residential transactions reach Dh225.7 billion (Rs 5.91 lakh crore), according to a report by property consultancy Anarock.
The report found that buyers from more than 150 countries invested in Dubai's residential market in 2025, with Indians accounting for the largest share at 22%, followed by British buyers at 17% and Chinese investors at 14%.
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 2026 as the market recovered from the regional uncertainty, according to the report, as cited by Khaleej Times.
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Average residential prices stood at around Dh1,900 (about Rs 50,000) per square foot in the first half of 2026, up 6% from Dh1,800 (about Rs 47,000) per square foot during the same period a year earlier.
"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, and CEO of 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 said, adding that it marked the widest sentiment-to-asset gap recorded during any Dubai market downturn.
Puri said off-plan properties accounted for 70-77% of residential transactions during the period, reflecting sustained buyer confidence despite short-term uncertainties. He added that the market's rebound was supported by strong underlying fundamentals.
Demand also remained supported by Dubai's growing population, which increased by around 470 residents a day in 2025, taking the emirate's population to more than 4.03 million.
The report also found that the number of new investors in Dubai's real estate market rose 23% year-on-year to more than 129,600 in 2025. Cash purchases accounted for about 80% of transactions, making the market less vulnerable to changes in interest rates.
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Among buyers, 38% purchased homes for personal use, while 28% invested to generate rental income. Another 21% bought property to qualify for the UAE's Golden Visa programme, while 13% cited wealth preservation as their primary motivation.
Anarock expects Dubai's residential prices to rise 4-7% in 2026, supported by government initiatives, sustained demand from overseas buyers and continued population growth. However, it said a renewed escalation in regional conflict remains the biggest downside risk for the market in the second half of the year.
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