What to expect from the UAE property market in 2026

Property investment | 06.11.2025 | Benham and Reeves UAE

With 2026 approaching, the UAE property market is all set to enter a new chapter with greater maturity, diversified demand and a rebalancing of prices after several years of strong growth. With Dubai following in the footsteps and Abu Dhabi showing a steady momentum, analysts expect that the real estate sector is showing all signs of rapid expansion towards sustainable stability.

The National News reported that rental prices in Dubai have increased by double digits in 2024-2025, but experts expect a slight decline in 2026 due to new supply and increased bargaining power for tenants.

Despite being moderate, the UAE property market forecast for 2026 remains positive due to economic growth, long-term visa programs, and strong investor confidence.

What can you expect further?

According to Moody’s, over 150,000 new homes will be built in the UAE from 2025 to 2027, with around 120,000 units expected in Dubai in 2026.

This expansion is increasing market diversity and offering more choices for buyers at various prices. More supply can stabilize short-term price increases and support long-term growth and accessibility.

Rental trends: Normalising after a record run

After two years of record-breaking rental increases, particularly in prime villa and waterfront districts, 2026 is expected to bring a more measured pace of rental growth.

The supply increase in suburbs such as Jumeirah Village Circle and Al Furjan may result in slight easing, while high-demand areas like Creek Harbour and Expo City are anticipated to maintain strong occupancy due to infrastructure improvements and job opportunities.

Prime districts are likely to outperform in terms of rent increases, although the rate of growth may slow from the previous double-digit rises.

Buyer and investor outlook

• In 2026, end-users may have more bargaining power, more options, and better payment plans from developers when entering the market.
• Investors may see potential in projects with clear value propositions, especially in prime, sustainable, and strategically located communities for long-term growth.

Dangers and cautions

Despite the strong fundamentals, stakeholders should keep monitoring:

• Completing projects on time to keep the balance between supply and demand.
• Shifts in global economic conditions and currency trends
• Performance of the lower-tier apartment market amid expanding stock

Key takeaways for stakeholders

Dubai real estate trends 2026: What's cooking?

• Sustainability & smart homes: Developments with green credentials and tech integration are likely to hold better value.
• Flourishing communities: Areas consisting Dubai South, Expo City, Creek Harbour will likely gather more interest due to affordability, infrastructure, lifestyle etc.
• Payment-plan innovation: More flexible off-plan terms to attract sales in a cooler price environment.

Now when such market shift happens, getting your hands on a good market expertise becomes more crucial than ever. And, this is where you can consult Benham and Reeves! With rich on-ground insights, we help clients identify which sub-markets are prone to outperform and offer access to both off-plan ready to move properties and that too with attractive payment plans. Our professional team provides you with end-to-end guidance, due diligence and contact details making sure that your every step is the right move.

So, whether you’re an investor looking for strong yields, a first-time buyer entering the real estate market or someone relocating to the UAE, Benham and Reeves offers tailored advice to help you make confident as well as informed decisions.