The UAE property market is set to end 2025 with unprecedented achievements, driven by strong investor interest, a growing population, and solid economic fundamentals across major emirates.
As 2026 unfolds, the UAE is entering a more stable era. Supply is increasing, demand remains strong, and market cycles are becoming more predictable. Analysts from Moody’s and Fitch describe the upcoming period as one of steady growth, contrasting with the exuberance of the past two years.
According to CBRE, Colliers, Cavendish Maxwell, and Property Finder, the year witnessed record-high transactions and price growth, even as early signs of market normalization emerged.
The macroeconomic environment in 2025 was supportive. CBRE estimates GDP growth at around 4.9%, driven by tourism, non-oil sector expansion, and foreign investment. The UAE PMI remained above 54, indicating consistent business activity.
Population growth was a significant driver of demand—ValuStrat reports that Dubai gained approximately 1,000 residents per day in early 2025, increasing housing needs across the city. Wealth migration also contributed, with Henley & Partners noting nearly 10,000 millionaires relocating to the UAE in 2025, enhancing the high-end market.
Dubai’s residential sector had another robust year. Cavendish Maxwell reports 55,300 transactions in Q3 2025, a 17% annual increase, while Property Finder recorded 59,044, the highest ever for the quarter. Off-plan sales dominated, accounting for over 70% of activity, driven by attractive payment plans and investor interest.
Prices increased about 16% year-on-year, according to Cavendish Maxwell, supported by demand for waterfront and branded projects. Ready sales softened slightly—down 5% quarter-on-quarter—as buyers became more price-sensitive.
Supply is the market’s next pivotal factor. Deliveries in Q3 reached 9,400 units, with a significant wave expected ahead. Fitch and Moody’s estimate 150,000–250,000 units between 2025 and 2027. While this poses a temporary oversupply risk, both agencies anticipate a soft landing, with any corrections focused on mid-market apartments rather than prime segments.
CBRE notes that rental growth moderated to 8–12% year-on-year in 2025 after rapid increases in previous years. Apartment rents rose 2% in Q3, and villas 4% year-on-year. With more supply coming in 2026, rental stabilization is expected to continue.
This shift is encouraging more long-term residents to consider ownership: surveys cited by Property Finder suggest over half of Dubai residents plan to buy within three years.
The office market remained one of the tightest globally. CBRE and JLL report 94% occupancy in Grade A districts, with rents rising nearly 29% annually. Transaction values increased 87% in Q3, driven by strong off-plan activity.
With limited new stock until 2027, the commercial segment is likely to remain landlord-favorable through 2026.
Abu Dhabi recorded its strongest year ever. Property Finder reports 7,154 transactions in Q3, a remarkable 76% annual rise. Off-plan sales dominated at 73%, led by projects on Fahid Island and Al Hidayriyyat. Off-plan apartment values surged 276%, supported by controlled supply and strong absorption.
Colliers highlights 11–13% rental growth across key segments, while prime offices in ADGM neared full occupancy, with fitted units exceeding Dh3,000 per sqm.
Abu Dhabi’s disciplined supply strategy positions it for continued resilience in 2026.
The Northern Emirates expanded rapidly in 2025. Colliers reports over 13,000 new units launched in Q3 alone. Ras Al Khaimah experienced 18% annual price growth and 12% rental increases, driven by relocations from Dubai and tourism-related demand tied to Al Marjan Island and the upcoming Wynn Resort.
Sharjah posted 12% price growth and strong family-driven demand, while Al Ain maintained stable, community-focused performance with new government-backed housing initiatives.
The luxury market remained a top performer, boosted by high-net-worth migration and limited supply. Cavendish Maxwell notes 15–30% annual growth in Dubai’s ultra-prime districts such as Palm Jumeirah and Dubai Hills.
RAK’s coastal luxury projects gained global attention, with some developments reporting nearly 80% international buyers.
Increasing supply—especially in Dubai—is expected to cool price growth. Fitch anticipates potential softening of up to 15% in select mid-market segments. Luxury and waterfront assets should remain stable due to limited supply and global interest. More completed homes in 2026 will broaden choices and ease affordability pressures.
Enhanced transparency and project oversight will reinforce investor confidence. Corporate relocations and expatriate inflows will continue to support both residential and commercial markets.
The UAE enters 2026 from a position of strength. Dubai is moving toward equilibrium, Abu Dhabi continues its steady upward trajectory, and the Northern Emirates are capturing new migration and tourism-driven demand.
The outlook is one of maturity, stability, and sustained long-term appeal, experts say. “The next phase will focus less on record-breaking numbers and more on balance, resilience, and strategic growth—signs of a property market evolving with confidence.”
