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What To Know
- Dubai enters 2026 following one of the strongest years in its real estate history, supported by sustained demand, a highly international buyer base, and a clear shift toward long-term ownership.
- In a recent market outlook, Louis Harding, CEO of betterhomes, said Dubai’s residential market is heading into 2026 from a position of stability rather than correction.
- With strong fundamentals, global investor interest, and resilient demand, Dubai’s real estate market is expected to move through 2026 with steady growth and selective stabilisation rather than correction.
Dubai enters 2026 following one of the strongest years in its real estate history, supported by sustained demand, a highly international buyer base, and a clear shift toward long-term ownership. According to market experts, the city’s property sector is no longer driven by short-term speculation but by residents choosing Dubai as a primary home.
In a recent market outlook, Louis Harding, CEO of betterhomes, said Dubai’s residential market is heading into 2026 from a position of stability rather than correction. With the population nearing 4 million, continued inflows of high-net-worth individuals, and strong foreign investment, the market’s fundamentals remain solid.
By the end of 2025, total real estate transaction value had already crossed AED 500 billion, with more than 186,000 property sales, surpassing full-year figures from 2024. Growth was recorded across luxury homes, apartments, townhouses, and villas, reflecting broad-based demand.
However, Harding noted a shift in market dynamics during the second half of 2025. While transaction volumes remained strong, price growth moderated in some mid-market segments due to increased supply. Monthly sales in October and November averaged around 18,000 transactions, pointing to a more balanced, end-user-led market.
Looking ahead, both apartments and villas are expected to perform well in 2026. Apartments continue to benefit from affordability and liquidity, while villas have shown steady capital growth. Rental yields across Dubai typically range between 5% and 9%, depending on location and property type.
Despite concerns around new supply, Dubai’s population growth suggests demand will remain strong. Around 100,000 units are forecast for completion in 2026, but delays and phased handovers are expected to ease pressure. When combined with second-home buyers, investors, and renters transitioning to ownership, supply remains broadly aligned with demand.
The Golden Visa programme continues to play a key role in supporting end-user stability. Since 2021, more than 250,000 Golden Visas have been issued, attracting entrepreneurs, professionals, and families committed to long-term residency.
With strong fundamentals, global investor interest, and resilient demand, Dubai’s real estate market is expected to move through 2026 with steady growth and selective stabilisation rather than correction.
