UAE Property Market Enters Steadier Growth Phase In Q3 2026

(MENAFN- Khaleej Times) The UAE real estate market is showing signs of evolution rather than slowdown, with the third quarter of 2026 pointing to a more mature and balanced phase after several years of exceptional growth. While transaction activity has moderated from the record highs seen in 2025, demand remains underpinned by strong population growth, economic expansion, business migration and continued interest from international investors.

Recent market data suggests the sector is moving away from rapid speculative gains towards a model increasingly driven by end-users and long-term investors. In Dubai, residential transactions totalled roughly Dh70.8 billion to Dh72.6 billion during Q3 across about 34,000 to 34,500 deals. Although volumes were lower than a year earlier, analysts say much of the moderation reflects fewer new launches and a normalisation of activity following an extraordinary growth cycle.

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A notable trend is the growing strength of the ready-home market. Transaction values for completed properties rose to Dh25.1 billion during the quarter, highlighting demand from residents seeking immediate occupancy and stable rental income. Meanwhile, off-plan properties continued to dominate activity, accounting for around 72% of transactions, demonstrating continued confidence in the UAE's long-term growth story.

Property consultants say buyers have become more discerning, placing greater emphasis on quality, location, pricing and long-term value rather than short-term capital appreciation.

In this regard, Mondrian Al Marjan Island Beach Residences, developed by ELEVATE in partnership with Ennismore, has recorded a landmark Dh73 million single transaction as Project Hits 75% sold. The deal marks a significant milestone for the development and highlights continued demand for quality branded residences on Al Marjan Island.

The deal was completed last month with a buyer from North America, reflecting the destination's growing international appeal.

The transaction covered four homes: a 5-bedroom penthouse, a 4-bedroom penthouse, a 3-bedroom townhouse and a 3-bedroom residence. The project is now 75% sold.

Progress on site is keeping pace with sales, with shoring works 100% complete and piling works 80% complete. In August 2026 alone, the project recorded more than Dh100 million in closed sales.

Commenting on the milestone, Zeeshaan Shah, Founder & Chairman of ELEVATE, said:“We are the most successful and fastest-selling project on Al Marjan Island in the last 12 months. It is the result of an uncompromising commitment to building something genuinely exceptional in a market that can tell the difference. What we are witnessing in Ras Al Khaimah right now is something that, frankly, most people are still sleeping on. The Wynn Al Marjan Island opens in less than twelve months. This is a $5.7 billion development, the largest single hospitality project ever built in this region.

“As the island moves closer to a new era of tourism and hospitality, the market is entering a phase where quality, scarcity and timing will play an increasingly important role in investment decisions.”

Meanwhile, Casagrand, one of India's leading real estate developers, has appointed Jaseera Building Contracting LLC as the main contractor for Casagrand HERMINA, its debut development in the UAE.

The appointment marks the next phase of construction at Casagrand HERMINA. With foundation works now complete and the main contractor formally onboarded, the project is progressing to schedule and is geared towards handover in Q2 2028.

Luthfullah K, Director Dubai, Casagrand, said:“Bringing Jaseera Building Contracting on board as our main contractor is an important step for Casagrand HERMINA and for every buyer who has placed their trust in us. Dubai Islands is one of the city's most promising waterfront destinations, and its growth as a place to live, visit and invest is gathering pace. Our responsibility is to match that momentum with disciplined execution on the ground. With foundation works complete and a capable contracting partner in place, we are well positioned to deliver HERMINA on time and to the standard our customers expect from Casagrand.”

Mohammed Konikkal, Managing Director, Jaseera Building Contracting LLC, said:“We are proud to partner with Casagrand on HERMINA. Casagrand brings a strong track record of delivery and a clear focus on quality, and we share that commitment. Our team is ready to move into the next phase of construction, and we look forward to working closely with Casagrand to deliver a development that meets the highest standards of build quality, safety and timely completion.”

Located at Dubai Islands, Casagrand HERMINA continues to attract interest from regional and international buyers seeking long-term value in a waterfront residential destination.

The dominant theme shaping UAE real estate in 2026 is market normalisation. Transaction volumes are no longer rising at the breakneck pace seen in previous years, but underlying demand remains resilient. Ready-home sales are gaining momentum, off-plan continues to attract investors, and price movements are becoming more measured as supply gradually increases. Analysts describe the shift as evidence of a healthier market rather than a weaker one, with growing participation from end-users helping create greater stability. If current demographic and economic trends continue, the sector appears well positioned for sustainable expansion rather than another short-lived boom.

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