Dubai has been one of the most active real estate markets in the world for a long time. As we get closer to the end of 2025 and look ahead to 2026, investors want to know where the market is going. The city’s reputation as a safe place for global capital to go, along with its smart government policies, keeps attracting buyers from both inside and outside the country.
This article talks about important trends in the real estate market, government policies, and predictions for the fourth quarter of 2025 to the fourth quarter of 2026. It also explains why Dubai is still a good place to invest.
A look at the Dubai real estate market in the fourth quarter of 2025
Real estate in Dubai has done very well in 2025. Demand has stayed strong because foreign investors keep coming in, there are opportunities to buy property linked to residency, and Dubai is known as a global business and lifestyle hub.
- Prices: By the fourth quarter of 2025, prime residential prices are expected to rise by 5–7% each year, with luxury waterfront areas like Palm Jumeirah, Downtown, and Dubai Creek Harbour leading the way.
- Transactions: Off-plan sales are still the most common type of transaction, making up almost 60% of all transactions. This shows that investors are very confident in future developments.
- Rentals: Rental yields have stayed strong, averaging 6–8%, which is much higher than in major real estate markets like London or Singapore.
The forecast for the fourth quarter of 2026 is steady growth
The future of Dubai’s real estate market looks good as we look ahead to 2026. The fundamentals are still strong, even though the rate of growth may slow down compared to the surge that happened after the pandemic.
- Price Growth: Residential prices are expected to go up by 4 to 6 percent in 2026, thanks to steady demand from end-users and long-term investors.
- Supply Pipeline: By the end of 2026, about 35,000 to 40,000 new units are expected to be delivered. This will give investors more options while keeping the market stable.
High-net-worth individuals (HNWIs) still see Dubai as a great place to go on vacation. The ultra-luxury villa and branded residence market is expected to do better than the rest of the market because of the movement of wealth around the world. - Focus on sustainability: Projects that have green certifications, smart-home features, and eco-friendly designs will probably be worth more.
Why investors should stay positive
Some market analysts think that growth will slow down a little, but Dubai’s fundamentals are still very strong:
- Golden Visa Effect: Investors who buy property worth AED 2 million or more can still live in the UAE for a long time, which increases demand.
- Expo Legacy: The excitement from Expo 2020 has led to ongoing growth in infrastructure in places like Dubai South and Expo City.
- Strong Rental Yields: Investors still get some of the highest rental yields in the world, which means they always have money coming in.
Dubai is seen as a safe and tax-efficient place to invest because of the ongoing changes in world politics. It draws money from Asia, Europe, and Africa.
Important government actions that help the market
Government help has been very important in making the property market stable and growing:
Long-term visas tied to property ownership are a game-changer for foreign buyers in the Residency Reforms.
- Regulatory Framework: The Dubai Land Department (DLD) is still putting in place clear systems for registering property and establishing ownership rights.
- Smart City Development: Projects that focus on AI, green buildings, and sustainability are in line with what investors around the world want in real estate that is ready for the future.
Areas to Watch in 2026 That Are Good for Investors
Several hot spots are likely to give good returns in the next year:
- Dubai Creek Harbour is becoming the “next Downtown” with high-end waterfront developments.
- Business Bay and Downtown are always in demand from professionals and businesses.
- Dubai South and Expo City are close to Al Maktoum Airport and have quickly growing infrastructure.
- Palm Jebel Ali (revival projects) is being marketed as the new luxury waterfront destination.
Market Outlook: Numbers for Q4 2025 to Q4 2026
| Quarter | Price Growth (Residential) | Average Rental Yields | Transaction Trend | Supply Additions |
| Q4 2025 | +5–7% YoY | 6–8% | Strong (led by off-plan) | ~25,000 new units |
| Q4 2026 | +4–6% YoY | 5.5–7.5% | Stable growth, end-user driven | ~35,000–40,000 units |
The message to investors looking at Dubai in late 2025 and early 2026 is clear: the city’s real estate market is still strong, profitable, and competitive on a global scale. Even though growth rates may go back to normal after the peak years, Dubai’s high rental yields, government-backed reforms, and global appeal make it a key part of a diversified property portfolio.
Dubai’s economy is still on the rise, and investors who make smart choices, like investing in off-plan properties, luxury projects, or environmentally friendly developments, will benefit.