Dubai Real Estate Market Outlook: What to Expect in 2026

Dubai's real estate market has been on an unprecedented run. In 2025, the emirate recorded over AED 580 billion in property transactions, marking a 12% increase from 2024. As we enter 2026, the fundamentals driving this growth remain firmly in place.

Population growth continues to be the primary demand driver. Dubai's population surged past 4 million in 2025, fueled by an influx of skilled professionals from Europe, Asia, and the Americas. The government's Golden Visa program, which grants 10-year residency to property investors spending AED 2 million or more, has been a particularly powerful magnet for high-net-worth individuals.

On the supply side, developers have been cautious about oversaturating the market. Unlike the 2008-2009 cycle, new launches are being carefully timed and priced. This disciplined approach has kept vacancy rates low -- around 8% across the emirate -- and rental yields healthy at 6-10% depending on the area.

Key areas to watch in 2026 include Dubai South, which is benefiting from the Al Maktoum International Airport expansion; Dubai Creek Harbour, where Emaar's masterplan is maturing; and JVC/JVT, which continue to offer strong yields for budget-conscious investors.

For international investors, the combination of zero income tax, strong rule of law, and world-class infrastructure makes Dubai one of the most compelling real estate markets globally. However, due diligence remains essential. Working with a licensed brokerage and experienced advisor can help you navigate the market confidently.

At HorizonCapital, we anticipate that 2026 will see continued price appreciation in prime areas (5-8%), stable to rising rental yields, and a growing volume of institutional investment flowing into the emirate. Now is an excellent time to position your portfolio for the next wave of growth.