Authored by the expert who managed and guided the team behind the United Arab Emirates Property Pack
Yes, the analysis of Dubai's property market is included in our pack
If you want to understand how the real estate market in Dubai is performing right now, you have come to the right place.
In this article, we cover the current housing prices in Dubai, the main trends shaping the market in 2026, and the key factors you need to know before buying property there as a foreigner.
We constantly update this blog post with fresh data to keep it relevant and useful for you.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Dubai.
Fact-checked and reviewed by our local expert
Ines Benaddi 🇲🇦🇫🇷
Real Estate Agent, Dubai Real Estate
How's the real estate market going in Dubai in 2026?
What's the average days-on-market in Dubai in 2026?
As of early 2026, the estimated average days-on-market for correctly priced residential properties in Dubai sits around 45 days for apartments and between 35 and 55 days for villas and townhouses.
Most typical listings in Dubai sell within 30 to 60 days if they are priced realistically, but overpriced properties can sit on the market for 90 days or longer until sellers adjust their expectations.
Compared to 2023 and 2024, the selling time in Dubai has remained relatively stable because transaction volumes stayed high, though the expected 2026 supply wave may push these numbers slightly higher for commodity apartments in oversupplied areas.
Are properties selling above or below asking in Dubai in 2026?
As of early 2026, the estimated average sale-to-asking price ratio for residential properties in Dubai ranges from about 95% to 102% of asking price, depending on the property type and location.
Roughly 60% to 70% of properties in Dubai sell at or slightly below asking price, while 20% to 30% of prime or scarce properties sell at or above asking price, though we should note that Dubai lacks an official citywide sale-to-list ratio dataset, so confidence in these numbers is moderate.
Bidding wars and above-asking sales in Dubai are most common in prime areas like Palm Jumeirah, Downtown Dubai, and Dubai Hills Estate, especially for scarce villas and waterfront homes where supply cannot keep up with demand from high-net-worth buyers.
By the way, you will find much more detailed data in our property pack covering the real estate market in Dubai.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the UAE. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What kinds of residential properties can I realistically buy in Dubai?
What property types dominate in Dubai right now?
In Dubai, the estimated breakdown of residential properties available for sale is roughly 65% to 70% apartments, 20% to 25% villas and townhouses, and the remainder consisting of off-plan units and other property types.
Apartments represent the largest share of the Dubai property market by far, accounting for the majority of transactions and listings in most market reports.
Apartments became so prevalent in Dubai because the city was built rapidly to accommodate a fast-growing expatriate population, and high-rise towers offered efficient use of limited land while meeting the demand for affordable and mid-range housing options.
If you want to know more, you should read our dedicated analyses:
- How much should you pay for an apartment in Dubai?
- How much should you pay for a villa in Dubai?
- How much should you pay for a townhouse in Dubai?
Are new builds widely available in Dubai right now?
New-build properties make up a significant share of the Dubai market, with off-plan units representing roughly 60% to 70% of total residential transactions in recent periods, and around 120,000 units are expected to be delivered in 2026 alone according to Fitch Ratings.
As of early 2026, the neighborhoods with the highest concentration of new-build developments in Dubai include Jumeirah Village Circle, Mohammed Bin Rashid City, Business Bay, Dubai Creek Harbour, and Dubai South, which are all areas with active construction and large delivery pipelines.
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Which neighborhoods are improving fastest in Dubai in 2026?
Which areas in Dubai are gentrifying in 2026?
As of early 2026, the top neighborhoods in Dubai showing the clearest signs of gentrification include Dubai Creek Harbour, Jumeirah Village Circle, Al Furjan, and Dubai South, all of which are experiencing rapid development and improving amenities.
Visible changes indicating gentrification in these areas include new metro station construction for the Blue Line at Dubai Creek Harbour, the opening of international schools and medical clinics in JVC and Al Furjan, and the influx of branded restaurants and retail centers replacing older strip malls.
Price appreciation in these gentrifying Dubai neighborhoods has been estimated at 15% to 30% over the past two to three years, with some areas like Dubai Creek Harbour seeing even stronger gains due to infrastructure announcements and waterfront appeal.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Dubai.
Where are infrastructure projects boosting demand in Dubai in 2026?
As of early 2026, the top areas in Dubai where major infrastructure projects are boosting housing demand include Dubai Creek Harbour, Al Jaddaf, Meydan, and areas along the planned Metro Blue Line corridor.
The specific infrastructure projects driving this demand include the Dubai Metro Blue Line with its 14 new stations, the expansion of Dubai Creek Harbour's waterfront district, and the ongoing development of Expo City Dubai into a permanent urban district.
The Dubai Metro Blue Line is expected to be completed by 2029, while many Expo City Dubai developments are already operational and continuing to expand through 2027 and beyond.
Historically in Dubai, properties near announced metro stations have seen price increases of 5% to 15% upon announcement, with an additional 10% to 20% appreciation by the time of completion, though actual results vary by location and market conditions.
We have made this infographic to give you a quick and clear snapshot of the property market in the UAE. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
What do locals and insiders say the market feels like in Dubai?
Do people think homes are overpriced in Dubai in 2026?
As of early 2026, the general sentiment among locals and market insiders in Dubai is mixed, with many feeling that prices are high after years of strong growth, but also acknowledging that properties keep selling due to sustained demand.
Those who argue homes are overpriced in Dubai typically point to the rapid price increases of 60% or more since 2020, rising service charges, and the upcoming supply wave of 120,000 units expected in 2026 that could soften prices.
On the other side, those who believe Dubai prices are fair argue that strong population growth, zero income tax, high rental yields of 6% to 8%, and continued inflows of high-net-worth individuals justify current valuations.
The price-to-income ratio in Dubai is challenging to measure precisely due to the expatriate-dominated population, but property prices relative to typical professional salaries are generally considered more affordable than cities like London, Hong Kong, or Singapore.
What are common buyer mistakes people regret in Dubai right now?
The most frequently cited buyer mistake in Dubai is purchasing based on a beautiful showroom or marketing materials without properly researching the developer's track record, the building's service charges, and the actual quality of construction and management.
The second most common buyer mistake in Dubai is underestimating the total cost of ownership, including service charges that can reach AED 20 to AED 50 per square foot annually, chiller fees for air conditioning, insurance, and sinking fund contributions that add thousands of dirhams to yearly expenses.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Dubai.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Dubai.
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How easy is it for foreigners to buy in Dubai in 2026?
Do foreigners face extra challenges in Dubai right now?
Foreigners face a moderate difficulty level when buying property in Dubai compared to local buyers, primarily because they can only purchase in designated freehold areas and face stricter mortgage terms, but the overall process is quite streamlined by global standards.
The main legal restrictions for foreign buyers in Dubai include being limited to purchasing in freehold zones such as Dubai Marina, Downtown Dubai, Palm Jumeirah, and JVC, while leasehold areas remain off-limits for full ownership by non-GCC nationals.
Practical challenges foreigners commonly encounter in Dubai include navigating the strict Know Your Customer and anti-money laundering documentation requirements, coordinating property viewings and transactions remotely across different time zones, and understanding the nuances of off-plan payment schedules that differ significantly from most Western markets.
We will tell you more in our blog article about foreigner property ownership in Dubai.
Do banks lend to foreigners in Dubai in 2026?
As of early 2026, mortgage financing is widely available for foreign buyers in Dubai, with most major UAE banks offering dedicated non-resident mortgage products for purchasing property in freehold areas.
Foreign buyers in Dubai can typically expect loan-to-value ratios of 50% to 75% depending on the property value and type, meaning down payments of 25% to 50% are usually required, with interest rates ranging from about 4% to 6.5% annually.
Banks in Dubai typically require foreign mortgage applicants to provide six months of bank statements, proof of income showing a minimum salary of around AED 15,000 per month or equivalent, a valid passport, and evidence of employment or business ownership verified by an independent source.
You can also read our latest update about mortgage and interest rates in The United Arab Emirates.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UAE versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How risky is buying in Dubai compared to other nearby markets?
Is Dubai more volatile than nearby places in 2026?
As of early 2026, Dubai's property market is estimated to be more volatile than Abu Dhabi and Riyadh, primarily because Dubai has greater exposure to international capital flows, faster supply responses from developers, and a higher proportion of investor-driven purchases.
Over the past decade, Dubai has experienced price swings of up to 50% during downturns like 2008 to 2009 and 25% to 30% during the 2014 to 2019 correction, while Abu Dhabi saw more moderate fluctuations of 15% to 25%, and Riyadh remained relatively stable until its recent growth phase.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Dubai.
Is Dubai resilient during downturns historically?
Dubai has shown a mixed resilience pattern during downturns, with sharp initial declines followed by policy adaptations and eventual recovery, making it more volatile than mature markets but capable of bouncing back within five to seven years.
During the 2008 to 2009 global financial crisis, Dubai property prices dropped by approximately 50% in some segments, and full recovery to previous peak levels took roughly six to seven years, with prices stabilizing around 2013 to 2014 before another correction began.
Property types and neighborhoods in Dubai that have historically held value best during downturns include prime waterfront locations like Palm Jumeirah, established communities like Emirates Hills, and scarce villa developments in Dubai Hills Estate, while commodity apartments in oversupplied towers tend to suffer the steepest declines.
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How strong is rental demand behind the scenes in Dubai in 2026?
Is long-term rental demand growing in Dubai in 2026?
As of early 2026, long-term rental demand in Dubai continues to grow steadily, driven by population growth that has pushed the city past 4 million residents and ongoing inflows of professionals relocating for work and lifestyle reasons.
The tenant demographics driving long-term rental demand in Dubai include young professionals working in finance, technology, and hospitality, expatriate families seeking quality schools and community living, and high-net-worth individuals attracted by the Golden Visa residency program.
Neighborhoods in Dubai with the strongest long-term rental demand right now include Dubai Marina and JBR for young professionals, Arabian Ranches and Dubai Hills Estate for families, and Jumeirah Village Circle for those seeking affordability with good connectivity.
You might want to check our latest analysis about rental yields in Dubai.
Is short-term rental demand growing in Dubai in 2026?
Short-term rentals in Dubai are regulated through the Department of Economy and Tourism, which requires property owners to obtain a holiday home license and register with approved operators, and buildings must also permit short-term letting in their community rules.
As of early 2026, short-term rental demand in Dubai continues to grow moderately, supported by record tourism numbers that exceeded 18 million visitors in 2024 and a growing digital nomad population attracted by remote work visas.
The estimated average occupancy rate for well-managed short-term rentals in Dubai ranges from 65% to 80% annually, though this varies significantly by season, with peak occupancy during winter months from October to April and lower rates during the hot summer period.
Guest demographics driving short-term rental demand in Dubai include international tourists visiting for leisure and shopping, business travelers attending conferences and trade shows, and an increasing number of digital nomads and remote workers staying for one to three months.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Dubai.
We made this infographic to show you how property prices in the UAE compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What are the realistic short-term and long-term projections for Dubai in 2026?
What's the 12-month outlook for demand in Dubai in 2026?
As of early 2026, the 12-month demand outlook for residential property in Dubai remains positive but more selective, with strong interest in prime and unique properties while commodity apartments face increased competition from new supply.
The key factors most likely to influence Dubai property demand over the next 12 months include the delivery of approximately 120,000 new units creating more buyer choice, global interest rate movements affecting mortgage costs, and continued population growth driven by visa reforms and economic diversification.
Forecasted price movement for Dubai over the next 12 months is expected to be moderate growth of 5% to 8% for prime properties, while mid-market apartments may see flat prices or slight corrections of 5% to 10% in oversupplied areas according to multiple analyst reports.
By the way, we also have an update regarding price forecasts in The United Arab Emirates.
What's the 3 to 5 year outlook for housing in Dubai in 2026?
As of early 2026, the 3 to 5 year outlook for housing in Dubai is cautiously optimistic, with expectations of moderate price growth, continued population expansion toward 5 million residents, and infrastructure improvements supporting demand in well-connected areas.
Major development projects expected to shape Dubai over the next 3 to 5 years include the completion of the Metro Blue Line by 2029, the expansion of Expo City Dubai into a permanent urban district, and the ongoing buildout of Dubai Creek Harbour as a new central business and residential hub.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Dubai is the pace of supply absorption, because if the roughly 300,000 units expected by 2028 deliver faster than population growth can absorb them, prices in oversupplied segments could face prolonged pressure.
Are demographics or other trends pushing prices up in Dubai in 2026?
As of early 2026, demographic trends are a major driver of housing prices in Dubai, with population growth of over 3% annually creating sustained demand that has helped absorb new supply and support price levels across most market segments.
The specific demographic shifts most affecting Dubai prices include the influx of high-net-worth individuals from Russia, India, and Europe seeking tax-friendly residency, the growth of young professional households attracted by career opportunities, and increasing family migration supported by the Golden Visa program.
Non-demographic trends also pushing prices in Dubai include the shift toward remote and hybrid work making Dubai attractive as a lifestyle destination, continued inflows of global capital seeking safe-haven real estate, and the city's positioning as a crypto and fintech hub drawing new business investment.
These demographic and trend-driven price pressures in Dubai are expected to continue for at least the next 3 to 5 years, supported by the Dubai 2040 Urban Master Plan which targets population growth to 5.8 million residents and continued economic diversification away from oil.
What scenario would cause a downturn in Dubai in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Dubai would be a combination of the 120,000-unit supply wave delivering faster than population can absorb it, combined with tightening credit conditions or a global economic shock that reduces investor appetite.
Early warning signs that would indicate a downturn is beginning in Dubai include a sustained increase in days-on-market beyond 90 days across multiple segments, developer incentives becoming widespread rather than selective, and significant increases in inventory levels without corresponding transaction growth.
Based on historical patterns, a potential downturn in Dubai could realistically see price declines of 10% to 20% in mid-market apartments and oversupplied areas, while prime properties in scarce locations would likely hold up better with corrections limited to 5% to 10%, similar to what occurred during the 2014 to 2019 correction cycle.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Dubai, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Dubai Land Department via Government of Dubai Media Office | This is the official government-published transaction data for Dubai's real estate market. | We used it to anchor actual market activity including sales volumes, transaction values, and investor participation. We treated it as the baseline reality check against private sector commentary. |
| Dubai Land Department Open Data Portal | This is Dubai's official public price index and metrics portal for real estate. | We used it to ground our market cycle discussion and verify pricing momentum. We relied on it to avoid depending solely on listing portals or broker narratives. |
| Central Bank of the UAE | This is the binding regulatory rulebook that all UAE banks must follow for mortgage lending. | We used it to explain how borrowing works for expatriates and foreigners including LTV ratios and down payment requirements. We kept the mortgage section grounded in regulation rather than sales talk. |
| Dubai Statistics Center | This is the official statistics agency for Dubai publishing verified population data. | We used it to link housing demand to population growth and household formation. We supported our demographics section with official government statistics rather than estimates. |
| Fitch Ratings | Fitch is a top global credit rating agency with formal methodology and explicit risk estimates. | We used it for quantified 2026 supply forecasts and downside risk scenarios. We balanced bullish local headlines with their sober risk assessment lens. |
| Knight Frank | Knight Frank is a major international research house with established market tracking methodology. | We used it to describe late 2025 pricing momentum and segment differences between prime and mainstream properties. We triangulated official signals with their on-the-ground market research. |
| Deloitte | Deloitte is a major global consulting firm publishing structured annual market outlooks. | We used it to cross-check macro drivers and understand the key factors driving the market. We treated it as a sanity check against single-source optimism or pessimism. |
| Dubai Islamic Bank | This is a major UAE bank publishing analytical market reports with incentives to be accurate for their lending decisions. | We used it to triangulate transaction intensity and market context from a lender's viewpoint. We connected credit conditions with property market dynamics rather than treating them separately. |
| BIS via FRED | This republishes Bank for International Settlements data through a transparent and well-known data portal. | We used it for long-run volatility context and historical boom-bust patterns at the UAE level. We avoided judging risk based only on the latest 12 to 24 months of data. |
| Betterhomes | Betterhomes is a large and long-established Dubai brokerage publishing structured market reports with transaction-level insights. | We used it to corroborate transaction composition including apartment share, deliveries, and pipeline data. We treated it as a market practitioner cross-check against consultancy views. |
| Dubai Department of Economy and Tourism | This is Dubai's official tourism authority publishing recurring performance data on visitor arrivals. | We used it as a proxy for short-term rental demand drivers. We kept our Airbnb and holiday rental discussion tied to official arrivals data rather than speculation. |
| Dubai Roads and Transport Authority | The RTA is the transport authority executing major infrastructure projects and publishing official project details. | We used it to cross-check Metro Blue Line project scale including stations and capacity. We made our infrastructure section specific and verifiable rather than speculative. |
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