Dubai building licences jump as construction activity accelerates

Dubai recorded a 37.4% year-on-year increase in licensed buildings during the first half of 2026, underscoring the pace of construction and urban expansion across the emirate.
The number of licensed buildings rose to 4,305 from 3,134 in the first six months of 2025, an increase of 1,171 buildings. The figures point to continuing development across residential, commercial and service-related projects as Dubai accommodates population growth, business expansion and strong property investment.
Building activity extended well beyond completely new developments. Dubai Municipality issued 19,715 building permits during the six-month period, including 3,364 permits for new projects and 16,351 covering additional buildings, modifications and minor or major extensions to existing buildings or projects under construction.
The volume of permits shows that developers are expanding and upgrading existing assets alongside launching projects, broadening the construction cycle beyond the headline-grabbing residential developments that have dominated Dubai’s property market.
Regulators also carried out more than 50,000 inspection visits to construction sites during the period, examining building work for compliance with approved technical and engineering requirements. The level of supervision has risen alongside the growing development pipeline as authorities seek to maintain safety and construction standards while accelerating approval procedures.
The first-half figures represent a significant step up from 2025, when Dubai Municipality conducted more than 25,000 field inspections during the corresponding six months. Those inspections covered more than 18,800 buildings under construction with a combined built-up area exceeding 36 million square metres.
Dubai also issued 1,669 building completion certificates during the first half of 2025, 30% more than a year earlier. They covered 1,484 villas, 74 multi-storey buildings and 60 industrial facilities, adding about two million square metres of residential, commercial and industrial space.
Badar Rashid Al Blooshi, chairman of Arabian Gulf Properties, said the expansion in licensed buildings reflected the scale of development activity and confidence in Dubai’s property outlook. He also pointed to investment in existing projects as an important component of the market rather than growth being driven exclusively by new launches.
Property demand has remained a powerful incentive for developers. Dubai’s real estate transactions reached AED252 billion during the first quarter of 2026, up 31% by value from the same period of 2025. The market recorded 60,303 property transactions during the quarter, a 6% increase.
Property investments were valued at AED173 billion across 57,744 transactions, while the number of investors rose 8% to 48,448. New investors accounted for 29,312 of the total, an increase of 14%, signalling continuing inflows of buyers entering the Dubai market.
Foreign investment reached AED148.35 billion during the first quarter, rising 26%, while luxury property investments climbed to AED87.71 billion. The figures reinforce the link between strong sales activity, capital inflows and the growing development pipeline.
Rental demand is also maintaining pressure on housing supply. Rental contracts were valued at AED32.2 billion during the first quarter, with 118,385 new contracts and 135,607 renewals registered. Developers are consequently balancing demand for new homes against construction costs, project delivery schedules and the risk of adding supply too rapidly in individual locations.
Authorities have been encouraging faster and more efficient construction while maintaining common standards under the Dubai Building Code. The code establishes minimum requirements covering safety, public welfare, environmental impact and sustainable building design.
Dubai Municipality has also expanded approval of alternative construction methods. It approved the Dubox Modular Construction System operated by AMANA Group in Dubai Industrial City in June, supporting greater use of modular construction to shorten project schedules and improve efficiency.