A further increase in real estate prices and rents in Dubai could increase rent-related inflation, said a top real estate expert. The emirate witnessed over 30,000 transactions in Q2, 2023 resulting in sales value of Dh91 billion, growing by 35 percent in the corresponding period last year, that reflects strong demand for properties. According to Dubai Land Department, Dubai’s real estate saw transactions worth Dh283 billion (US$77 billion) in H1 2023, which is more than three times the total value of the land and property transactions of Dh81.03 billion recorded in 2019.
Dubai real estate has recorded more than Dh917 billion (US$249.7 billion) in value from 270,000 transactions the past year, marking appreciation of 20 percent from the annual collection in 2024. This makes the value higher than the gross domestic product (GDP) of 140 countries, reflecting the strength of the sector and its significance in bolstering the UAE’s economy.
Danube Properties, the Dubai-based private real estate developer, is going to have the rare distinction of becoming the first and so far the only developer to develop two more than 100-storeyed SuperTall towers that, once completed, will create a world record for the same feat and reinforce Dubai’s reputation as a global hub of skyscrapers.
The city of Dubai is solidifying its position as one of the tallest cities in the world and the first in the Middle East region, according to Council on Vertical Urbanism, the global market intelligence provider on tall towers.
Dubai Land Department (DLD) has launched the Initial Registration platform to streamline the developer journey and integrate project registration, real estate transaction registration and escrow account management. By deploying artificial intelligence, automating processes and delivering more efficient and transparent digital services, the platform supports the sector’s readiness for growth and reinforces Dubai’s position as a global destination for real estate investment.
Damac Properties, one of the largest real estate developers in the UAE, has announced the delivery of 50,000 homes. It has another 55,000+ units in the pipeline, including 8,800-plus targeted for handover this year across Damac Lagoons, Damac Hills, Damac Hills 2, Chic Tower and Elegance Tower. Construction contracts worth more than Dh10 billion were awarded during the first half of 2026. Over 100 million square feet of project area are currently in the planning and development phase. These works will establish the base for the next phase of deliveries in 2027 and beyond.
The commercial real estate in Abu Dhabi and Dubai exhibited a mixed performance in Q1 2026, with the office sector seeing improvements compared to retail. Owing to the recent geopolitical uncertainty, retail took a hit, particularly the segments catering to tourism-dependent categories.
According to Jones Lang LaSalle’s (JLL) Real Estate Market Dynamics report, rental rates in the UAE office sector demonstrated sustained growth momentum, with both Dubai and Abu Dhabi posting double-digit annual growth amid tight vacancy conditions, reflecting sustained occupier demand and constrained supply dynamics.
Prime office rents in the capital saw maximum year-on-year appreciation of 11.7 percent, while Grade A and Grade B spaces were up 5.1 percent and 4.2 percent, respectively. Limited availability of prime space in Dubai’s core business districts saw occupiers turn to Grade B alternatives, and this segment led rental appreciation by 23.4 percent year-on-year, followed by Grade A at 19.0 percent and prime at 17.2 percent.
Office inventory reached 101.1 million square feet in Dubai. Abu Dhabi’s total office stock expanded to 4.18 million square metres. Vacancy rates remained exceptionally tight, with Abu Dhabi citywide at 1.4 percent and prime at 0.1 percent. Following new building deliveries, Dubai’s citywide vacancy rose to 7.3 percent while prime edged up marginally to 0.7 percent.
On the other hand, first quarter office rental contract registrations in both Abu Dhabi and Dubai recorded year-over-year declines of 6.0 percent and 7.7 percent respectively. Monthly new contracts declined 19.7 percent in Abu Dhabi and 20.6 percent in Dubai in March, compared to February 2026. However, Dubai showed resilience, posting an 11.2 percent increase in renewals in annual terms, confirming existing occupier confidence despite cautious new commitments.
While global supply chain pressures impact development activity, developers are responding through strategic sourcing arrangements, phased procurement planning, and ongoing contractor negotiations to manage challenges. Looking ahead, transaction momentum is expected to strengthen with compelling market prospects sustained by limited prime stock.
The retail sector in Dubai citywide vacancy tightening to 4.8 percent as existing retail inventory stood at 56 million square feet. Abu Dhabi maintained a stable vacancy rate of 8.9 percent. Government support measures, including the Dh1 billion stimulus package, and landlord flexibility on lease structures such as turnover-rent models and short-term rent relief, were crucial in sustaining occupancy and preserving retail ecosystem stability.
Rental rates of super-regional malls in Dubai recorded strong performance at 12.4 percent annual growth, with prime super-regional properties exhibiting moderate growth of 1.7 percent. Abu Dhabi's prime super-regional malls sustained premium positioning at Dh5,524 per square metre, driven by selective tenant demand.
New rental contracts declined 9.9 percent year-on-year in Dubai. Abu Dhabi, however, recorded growth in total registrations, up 3.6 percent year-on-year, supported by new contracts rising 16.7 percent. Negotiations increasingly focused on flexible deal structures like occupancy-cost-ratio (OCR) and turnover-rent (TOR) models.
The current environment presents opportunities for retailers to diversify revenue sources and enhance domestic market capture through innovative strategies such as pop-up retail destinations and experiential offerings targeting resident demand. Community and neighbourhood centres are expected to maintain resilience. While prime, super-regional, and regional malls may face near-term headwinds if tourism remains constrained, experiential concepts, home-grown retailers, and wellness-focused offerings are well-positioned for growth as consumers prioritise mental and physical wellbeing.
Taimur Khan, Head of Research, MEA, JLL, said, “With strong underlying economic fundamentals and agile occupier and landlord strategies, the UAE’s office and retail sectors demonstrated remarkable resilience and a strong capacity for strategic adaptation as they navigated measured activity in the first quarter. Despite short-term adjustments, demand remains robust, signalling the market’s inherent strength and positioning it for sustained growth as demand for prime spaces accelerates amid tightening supply.”
Object 1, a Dubai-based real estate developer, has completed its second project, V1ter Residence, a residential development located in District 12 of Jumeirah Village Circle (JVC). The building is 25 storeys high and comprises 175 apartments, including 34 studios, 91 one-bedroom units, 42 two-bedroom units, and eight three-bedroom homes. The project was launched in June 2023.
Each unit is equipped with built-in appliances, three-metre ceiling heights, smart air conditioning controls, and integrated access systems. The development’s amenities feature a landscaped podium, lounge lobby, clubhouse, swimming pool, gym, sauna, indoor and outdoor sports areas, and dedicated spaces for children, including a kids’ zone and pool.
Tatiana Tonu, CEO of Object 1, said, “As Object 1’s second completed project in Dubai this year, V1ter reflects our approach to development in Dubai, grounded in continuity, build quality, and the confidence that comes from consistent execution. Our projects align with the Dubai 2040 Urban Master Plan through a focus on connected communities, everyday convenience, and residential environments designed to support long-term quality of life. We remain committed to delivering developments that retain value, serve real residents, and contribute to the city’s future.”
V1ter Residence benefits from strong connectivity while maintaining the community appeal that continues to drive demand in JVC. The development is located two minutes from Circle Mall and in proximity to Dubai Hills Mall, Dubai Marina, and key business and leisure districts, with direct access to Al Khail Road and Sheikh Mohammed Bin Zayed Road. The Roads and Transport Authority’s Hessa Street Phase II project is expected to further enhance accessibility by increasing road capacity and reducing travel times for surrounding communities.
Nisus Finance Services Co Limited, a leading alternative investment and urban infrastructure platform, reported a 109.61 percent jump in its total income to Dh54.24 million (US$14.78 million or ₹1.41 billion) in the financial year ending March 31, 2026, up from Dh25.91 million (US$7.06 million or ₹673 million) in financial year ending March 31, 2025 with strong growth in the UAE market.
Its strong operational growth, platform expansion and sustained profitability come from the UAE operations despite temporary geopolitical disruptions during the fourth quarter.
Nisus Finance’s core business of fund management and transaction advisory reported a 108 percent jump in year-on-year Profit After Tax (PAT) at Dh26 million (US$7.10 million or ₹677.60 million), and Earnings Before Interest, Tax, Debt, and Amortisation (EBITDA) of Dh37.14 million (US$10.12 million or ₹965 million) with EBITDA margins reaching 70.5 percent.
The company’s assets under management (AUM) grew 67 percent year-on-year to Dh1 billion (US$275.81 million or ₹26.31 billion), driven by investment activity across India and Dubai, strategic exits and continued traction in private credit and urban infrastructure opportunities.
The fourth quarter saw a temporary moderation in revenue due to deferred investment activity linked to geopolitical developments in West Asia. However, the company stated that the impact was event driven and not structural in nature, with several India and UAE transactions expected to spill over in FY27.
In August 2025, Nisus Finance acquired a majority stake in New Consolidated Construction Company Limited (NCCCL), one of India’s oldest and most respected construction firms that accelerated its growth and expansion both in India and the UAE in later months.
Founded in 1946, NCCCL is among India’s longest-running Engineering, Procurement and Construction (EPC) companies, with a track record spanning nearly eight decades. Over the years, it has delivered more than 200 million square feet of projects across residential, commercial, IT parks, hospitals, industrial facilities, and data centres. With an active order book valued at over Dh1.15 billion, the company has consistently worked with some of the most prominent developers and corporations in India.
On a consolidated basis, including NCCCL, Nisus Finance reported total income of Dh220.82 million (US$60.17 million or ₹5.74 billion) and Profit After Tax of Dh31.96 million (US$8.71 million or ₹830.8 million) for FY26.
Nisus acquired NCCCL during FY26 that helped it to continue to strengthen the group’s integrated infrastructure platform. Since the acquisition, the business added new orders worth over Dh461.68 million (US$125.80 or ₹12.00 billion) till May 26, providing healthy medium-term execution visibility.
During the year, Nisus Finance also significantly expanded its international investment platform. Its Dubai-focused AUM grew 223 percent year-on-year to Dh583.24 million (US$158.92 million or ₹15.16 billion), driven by investments across income yielding residential assets and high-yield growth opportunities. Despite temporary disruptions arising from the West Asia conflict during Q4, the company said its UAE portfolio remained resilient, reporting zero impairment, and continued Net Asset Value (NAV) appreciation across key investments.
Dr. Amit Goenka, Chairman & Managing Director of Nisus Finance, said, “FY26 was a defining year for Nisus Finance. We scaled the platform meaningfully while continuing to remain resilient through a period of global uncertainty. Despite temporary disruptions in cross-border investment activity during the fourth quarter, we exceeded our revenue guidance for the year and maintained strong profitability.
“Both our India and UAE businesses continued to see healthy momentum, while the acquisition of NCCCL has further strengthened our integrated urban infrastructure strategy. We are entering FY27 with a strong pipeline across fund management, structured credit, redevelopment and infrastructure opportunities.”
During the year, the company also expanded multiple strategic initiatives, including preparations for Ni-YAM, its hybrid credit and asset appreciation platform, along with plans for SM REIT structures and GIFT City feeder platforms. Nisus Finance said it remains focused on capital preservation, disciplined underwriting and long-term value creation, while continuing to expand its cross-border investment and advisory capabilities.
With a diversified business model spanning fund management, transaction advisory, strategic investments and infrastructure execution, the company believes it is well-positioned to benefit from the growing demand for alternative capital and urban infrastructure financing across India and the GCC region.
