Dubai Real Estate: A Ramadan Growth Story

Dubai Property Market Poised for 8–12% Growth During 2026 Ramadan

The Myth of Seasonal Slowdown Transformed

For a long time, the month of Ramadan was automatically associated with more subdued market activity in Dubai's real estate sector. Due to shorter working hours, a changed daily rhythm, and lifestyle changes associated with the festive period, some investors and buyers chose to wait. However, transaction numbers from recent years show that this previous pattern is gradually changing.

For the 2026 Ramadan, market participants predict an activity increase of 8–12%. This expectation is not optimistic exaggeration but is based on recent stable, data-driven performance. The Dubai property market is increasingly less responsive to short-term seasonal effects and is driven much more by fundamentals, consumer confidence, and sustained investor demand.

The Strong Base of Previous Years

The positive outlooks are not unfounded. During the 2025 Ramadan period, sales volumes showed significant growth compared to the previous year's figures. The total transaction value exceeded 39 billion dirhams, representing nearly a 20% year-on-year increase. The number of transactions also rose by nearly 19% compared to the same period the previous year.

This dynamic indicates that Ramadan is no longer a period of stalling but rather a phase of balanced yet continuous market presence. Buyers do not disappear from the market but make decisions more consciously and thoughtfully. Investor activity and end-user demand together form a stable demand base.

End-user Confidence and Investor Appetite

One of the key characteristics of the current market structure is that demand is no longer dominated exclusively by speculative investors. The presence of so-called end-users, who buy homes or villas for their personal use, is becoming increasingly strong. This group typically plans for the long term, is less sensitive to short cycles, and provides greater market stability.

Meanwhile, international investors remain active. The Dubai property market offers competitive returns, a transparent regulatory environment, and favorable tax structures even on a global scale. Demand does not come from a single country but from diverse sources, reducing the risk of market fluctuations.

Strong Ready and Off-plan Segments Alike

Based on 2026 early transaction patterns, there is vibrant interest in both ready and off-plan properties. Ready homes and villas attract buyers seeking security, while off-plan projects captivate investors considering long-term value growth.

Data from the past three Ramadans clearly show the continuous rise in transaction value. In 2023, total turnover during the festive month was 20.3 billion dirhams, which grew to 33.4 billion dirhams by 2024, and reached 37.5 billion dirhams in 2025. The number of transactions also significantly expanded: from 8,741 to 14,386 in two years.

This is not a one-time spike but a steady upward trend.

Dominance of Apartments, but Strengthening Villa Segment

The majority of transaction value still comes from apartments. The volume of apartment sales rose from 13.2 billion dirhams in 2023 to 22.6 billion dirhams by 2025. This well reflects the stable demand for mid-range and premium apartments.

Meanwhile, the villa and townhouse segment has also significantly strengthened. The value realized in this category grew from 7.1 billion dirhams to 14.9 billion dirhams during the same period. The demand for family-friendly communities, green developments, and larger living spaces remains a significant factor.

This duality – strong apartment market and expanding villa segment – indicates that demand moves across a wide spectrum, not concentrated in a single price category or product type.

Tourism Slowdown Did Not Break the Momentum

Although tourism typically moderates during Ramadan, this increasingly has less direct impact on the property market. The Dubai property market is no longer solely based on short-term rental and tourism foundations. Population growth, long-term residence visa programs, and economic diversification all contribute to keeping demand stable.

Disciplined pricing, improving project financing structures, and the predictability of the regulatory environment create strong fundamentals. These factors together reduce the significance of seasonal fluctuations.

Market Maturity and Long-term Confidence

Perhaps the most important change is that the Dubai property market has matured. Instead of former cyclical, fluctuating movements, a more balanced, data-driven growth pathway emerges. Ramadan no longer represents an automatic brake, but rather a unique yet stable-paced period.

The forecasted 8–12% activity growth for 2026 suggests that the market is no longer driven by short-term sentiment, but by long-term confidence. Buyers are more conscious, developers are more disciplined, and the financing background is more stable than before.

What Does This Mean for Investors?

Those considering investing in Dubai real estate should recognize that a seasonal pause strategy no longer necessarily offers a competitive advantage. Continuous demand presence means well-located, appropriately priced properties quickly find buyers, even during the festive month.

Thus, the 2026 Ramadan is expected not to bring a slowdown but a controlled, stable growth phase. The numbers, transaction patterns, and buyer behavior all point toward the fact that Dubai’s property market is beyond mere seasonal logic.

The question is no longer whether the market pauses during Ramadan but who can capitalize on opportunities arising from steadily increasing activity. Current data suggests that the 2026 festive period can again prove that Dubai's property market has entered the era of stability and long-term confidence.