Dubai’s real estate market saw a major upswing in 2025. According to DLD, in the first half of the year, the city recorded 125,538 real estate transactions, marking a 26% increase compared to H1 2024. The total value of these transactions reached approximately AED 431 billion, reflecting strong investor confidence and continued demand across both off-plan and secondary segments.
While these numbers are impressive, they also highlight key market shifts that investors should pay attention to as they plan for 2026. Wondering what lessons from 2025 can guide your property-buying journey in Dubai? Read this blog to find out.
5 Insights Every 2026 Investor Needs
Dubai’s real estate market in 2025 has attracted interest from both local and international investors. As we move into a more mature market, here are some key points investors should consider to solidify their investment decisions for the upcoming year:
- Off-plan leads the way: With more than 70% of transactions, investors who chose off-plan are already earning or are earning their way from choosing a choice that supports flexible payment plans and modern designs.
- Suburban communities win: It’s no longer solely about affordability. Communities like Jumeirah Village Circle (JVC) and Dubai Silicon Oasis have shown that the focus is now on choosing self-sufficient neighbourhoods that promise higher long-term returns in the future.
- Focus on wellness and sustainability: Highest wellness is the new standard of luxury, and this is the type of trend that will continue into the future. Homes integrated with wellness features as investments equal to a good quality of life.
- Maturing market: The sales values has already hit their peak at Dh559.4 at the end of October 2025, now we are transitioning to a phase where all decisions are empowered by population growth, new visa programs, and balanced supply management. For 2026, this could further intensify.
Explore: Top Benefits of Working With a RERA-Registered Broker – Find the Best Real Estate Agent in Dubai
Dubai Real Estate Market: Positive outlook for 2026
Sources predict mixed signals for the coming years, but considering the growth and performance of 2025, the outlook for investors in 2026 remains largely positive. Here’s why:
- New supply: According to Knight Frank, if around 70% of registered projects reach completion, Dubai could see about 331,000 new homes delivered over the next five years. This would create more opportunities for investors or buyers across different communities.
- Infrastructural development: Ongoing and planned infrastructure, including metro extensions, road upgrades, and improved connectivity, supports long‑term demand and can help accommodate population growth.
- Stabilised Rent (in certain areas): With increased supply and new residential units coming online, there is evidence that rents are moderating, especially in communities like Jumeirah Village Circle (JVC), Dubai South, and other emerging districts. This could also mean more negotiating power for renters and tenants.
Revealed: Top Dubai Areas Offer the Highest Rental Returns in 2025
Where to Invest in 2026?
Dubai’s property market is open to everyone today, with various budgets and goals. There isn’t a single answer or a list of areas for investors; it’s about knowing whether the market aligns with your goals of today or tomorrow. This means for:
- Off-Plan Investors: Focus on areas like Yas Island, Saadiyat Island, Al Reem Island, and Dubai Hills. These locations show strong local demand and are developed by reputable developers who prioritize timely project delivery.
- For Short-Term Rental Income: Look at waterfront or nature-focused districts such as Dubai Marina, Downtown Dubai, and Palm Jumeirah, where tourism remains consistently high, supporting rental yields.
- For Long-Term Capital Growth Seekers: Prioritize properties or projects with energy-efficient systems, walkable communities, and eco-friendly features. Shifting to a mixed-portfolio approach can also enhance long-term growth potential.
Conclusion
2025 is coming to an end, and it will be a memorable chapter for all of us, especially for investors. Are you one of the investors who think they just missed out? Don’t worry, it’s never too late. With AZCO Real Estate, we can assist you in finding the right property and projects, as well as help you manage your investments, alleviating concerns about future trends and their impacts.
You’re just one free consultation away from getting started. Alternatively, feel free to visit our website for the latest updates on the Dubai real estate market.
Also Read: Dubai Real Estate Trends: Apartments Surpass Villas in Demand – Here’s Why?
Frequently Asked Questions
Rental prices are expected to stabilise or moderate in some areas, providing renters with more options.
Off-plan properties often come with flexible payment plans and modern designs, making them appealing to investors who may struggle with a higher upfront payment.
A major crash is unlikely. While some areas with high new supply may see moderate price corrections, overall demand from local and international buyers is expected to remain strong, preventing a severe downturn.
Areas with significant new supply may experience slight corrections, but prices in established and desirable neighbourhoods are likely to remain strong.
