Dubai's real estate market will enter 2026 on a solid foundation, supported by a strong and resilient overall economy, continuous population growth, and strategic infrastructure investments. According to a report by 'Valustrat', a global multi-sector consulting firm, obtained by 'Emirates Today', villa and townhouse prices continue to outperform residential apartments in the current year. The report projects that villa and townhouse prices will grow by 17.7% in 2026, compared to 7.4% for apartments, driven by limited supply and shifting buyer preferences towards low-density housing. New Supply Valustrat's report estimates the new supply in the market at approximately 131,234 residential units, with apartments accounting for 81% and villas and other units for 19%. It confirms that the strongest demand remains for standalone family homes, representing less than 20% of the total supply, while some villa communities have seen prices triple since the 'COVID' pandemic. The report anticipates that the residential sector will maintain its upward trajectory in the current year, with capital gains expected to reach around 10%, reflecting the market's entry into a stabilization phase after years of rapid growth. It also predicts that rental price growth rates will stabilize in the current year, indicating that prices have peaked and rental market dynamics are changing. Office Market Furthermore, the report states that Dubai's office market will continue to record unprecedented demand levels, fueled by corporate expansion and new business formations. It states: 'Capital values and rental rates are expected to rise by 15%, a lower rate compared to 2025 but still strong, amidst continued supply constraints in prime locations, with Class A offices maintaining their premium due to limited supply.' According to developer estimates, 153,122 square meters (1.65 million square feet) of total leasable area are expected to be added in 2026, bringing Dubai's total office stock to 9.94 million square meters (107 million square feet). Business Flows Haider Taimeh, Head of Research at Valustrat, noted that population growth remains a key driver of demand in Dubai's real estate market, with the resident population expected to reach 4.7 million by the end of 2026. He also pointed out that Dubai's real estate market in 2026 will be shaped by strong economic growth, strategic infrastructure investments, and the evolving dynamics of various sectors. Taimeh forecasts that villas will remain the most in-demand asset class in the current year, with 50,000 residential units expected to be delivered from the total supply. He also anticipates that the office and hospitality sectors will continue to perform strongly, supported by global business flows and tourism demand, reflecting Dubai's resilience and its status as a global hub for trade, tourism, and investment.
