Most Dubai home buyers are betting on unbuilt properties; here's why

Seven in every ten properties sold across Dubai in the first half of 2026 were still under construction when buyers signed the contracts.

That figure, 71% of all transactions classified as off-plan, comes from a report by MERED, an international real estate developer, and it captures something fundamental about how ordinary buyers, investors and new residents are now engaging with the city’s housing market. Committing capital before a building is finished is no longer the exception. It is the dominant mode.

The scale of activity behind that percentage is striking. Dubai recorded 87,800 transactions worth AED291.7 billion (approximately $79.4 billion) in the first six months of the year. For the families and individuals behind those numbers, the decision to buy off-plan is a calculated act of trust, trust in the developer, in the regulatory framework, and in the city’s continued growth.

That growth is not abstract. Around 121,000 new residents arrived in Dubai during H1 2026, each of them needing somewhere to live. Their arrival sustains demand across price points and residential segments, and it keeps the pressure on a market that is already moving fast.

Prices reflect that pressure. Average property values climbed 9% in the first half of 2026, meaning buyers are paying more even as they commit earlier. At the top of the market, the numbers are sharper still. Dubai recorded 296 home sales exceeding $10 million during H1 2026, generating $5.1 billion in total value and setting a new first-half record. Compared to the same period in 2025, transaction volume in that category rose 16% and sales value rose 14%, a signal that international appetite for the city’s most distinctive homes has not cooled.

By contrast, the challenge for developers is no longer simply building enough units. It is building the right ones. The city’s pipeline holds over 31,000 units scheduled for completion by 2030, representing 8% of total new residential supply. Increasingly, projects are differentiated through architecture, internationally recognised design partnerships and lifestyle-led experiences that position developments as destination communities rather than housing stock.

Dubai’s branded residence sector illustrates where this is heading. The city ranks as the world’s leading destination for branded residences, with 64 completed developments and another 87 in the pipeline. Branded homes command an average 64% premium over non-branded properties, a gap that reflects what buyers are willing to pay for established design credentials and lifestyle associations. That premium, though, creates its own pressure: developers must deliver genuine value, not just a recognisable name on the facade.

Michael Belton, CEO of MERED, put the stakes plainly. “Off-plan property buyers commit before they can experience the finished product, so confidence must be earned through architectural quality, functionality and delivery credibility,” he said. “As Dubai’s off-plan market continues to expand, these are the qualities that will define the next generation of luxury residences and reinforce Dubai’s position as one of the world’s most desirable places to live and invest. With ICONIC Residences Design by Pininfarina, MERED is responding to a more selective market by turning early promise into lasting value beyond handover.”

The convergence of sustained off-plan momentum and an expanding pipeline of design-led developments is expected to reinforce Dubai’s standing among the world’s most active real estate markets. What remains to be seen is whether the city’s delivery record, across thousands of units and dozens of developers, can keep pace with the confidence that buyers are already placing in it.