Dubai Property Market Records AED 141 Billion in Q3 Transactions, Reports Windmills Group

Dubai's real estate sector maintained robust activity in the third quarter of 2026, registering approximately AED 141 billion in combined sales and mortgage transactions. A report by Windmills Group highlights continued investor interest, supported by attractive rental returns and diverse demand.

Strong Rental Yields Attract Investors

Rental yields remain a significant draw for investors in Dubai. The report indicates that apartment yields averaged 7.7 per cent, while villas provided around 7.0 per cent. Commercial properties offered even higher returns, with shops yielding approximately 8.5 per cent and offices about 8.2 per cent.

"With apartment yields at 7.7 per cent and commercial yields above 8 per cent, Dubai continues to offer income returns that few global cities can match," stated Bilal Moti, Chairman and CEO of Windmills Group, underscoring the market's shift towards sustainable, long-term income.

Sustained Mortgage Activity and Transaction Mix

Mortgage transactions remained steady at roughly AED 49 billion, mirroring figures from the previous year and indicating ongoing confidence among both lenders and buyers. Ready properties constituted nearly two-thirds of all transactions, reflecting a demand for immediate occupancy or rental income. Off-plan projects also continued to attract investors, benefiting from flexible payment plans and anticipated capital appreciation. The price gap between ready and off-plan properties has narrowed, offering more balanced investment choices.

Market liquidity was evident across different price points:

• Properties priced below AED 3 million accounted for the majority of cash sales.
• Ultra-luxury deals exceeding AED 30 million contributed significantly to the overall transaction value.

Community-Specific Performance and Broader Market Trends

Dubai South recorded the highest activity during the quarter, followed by Business Bay, Wadi Al Safa 4, Al Barsha South Fourth, and Palm Jumeirah, indicating broad-based demand across both emerging and established districts. Beyond residential real estate, the report observed quarter-on-quarter growth in land and commercial transactions. Industrial rents stayed above 2025 levels, supported by demand from logistics and e-commerce, and a shortage of modern warehouse spaces. Hotel occupancy also showed a sharp recovery, rising from 36 per cent in March to 66 per cent in August, with international overnight visitors nearing seven million between January and August.