Dubai Property Market Hits Dh141 Billion in Q3 Transactions, Says Report

Dubai’s real estate sector recorded approximately Dh141 billion in combined sales and mortgage transactions during the third quarter of 2026, according to a new report from Windmills Group. The data points to sustained investor interest in the emirate’s property market, supported by strong rental returns, active financing and demand spanning affordable to ultra-luxury segments.

Rental Yields Remain a Key Draw

The report highlights rental yields as a major attraction for investors. Apartment yields averaged around 7.7 percent during the quarter, while villa yields stood at about 7.0 percent. Commercial properties delivered even higher returns, with shops yielding approximately 8.5 percent and offices about 8.2 percent.

“With apartment yields at 7.7 percent and commercial yields above 8 percent, Dubai continues to offer income returns that few global cities can match,” said Bilal Moti, Chairman and CEO of Windmills Group. “For investors, the conversation is shifting from quick gains to sustainable, long-term income, and that is a sign of a maturing market.”

Mortgage Activity and Property Types

Mortgage transactions held steady at about Dh49 billion, matching the same period last year. This stability signals continued confidence from lenders and buyers alike.

Ready properties accounted for nearly two-thirds of all transactions during the quarter, reflecting strong demand from those seeking immediate occupancy or rental income. Off-plan projects also continued to attract investors, supported by flexible payment plans and expectations of future capital appreciation. The report notes that rising prices in the ready market have narrowed the gap with off-plan properties, giving buyers more balanced options.

Price Segments and Community Hotspots

Market liquidity was evident across different price brackets. Properties priced below Dh3 million made up the majority of cash sales, supporting healthy transaction volumes and resale activity. Ultra-luxury deals valued above Dh30 million contributed a significant share of total transaction value, underscoring Dubai’s appeal to wealthy international investors.

Among individual communities, Dubai South recorded the highest level of activity during the quarter, followed by Business Bay, Wadi Al Safa 4, Al Barsha South Fourth and Palm Jumeirah. The spread of activity across emerging and established districts points to broad-based demand across the emirate.

Land, Commercial and Hotel Segments

Beyond residential real estate, the report noted quarter-on-quarter growth in land and commercial transactions. Industrial rents remained above 2025 levels throughout the year, supported by logistics and e-commerce demand as well as a shortage of modern warehouse space. Hotel occupancy also improved sharply, rising from 36 percent in March to 66 percent in August, while international overnight visitors approached seven million between January and August.