The UAE Real Estate Market: Balance and Confidence in 2026

Part of this confidence comes from how much has been put in place over the past year. Abu Dhabi spent 2025 improving everyday life in subtle but meaningful ways: new parks, safer crossings, walkable waterfronts and neighbourhoods stitched together with better public spaces. Dubai kept extending infrastructure for districts mapped out under the 2040 Urban Master Plan, so areas that were just coordinates on a brochure now open with schools, supermarkets and shaded paths already in use. And up north, Ras Al Khaimah’s coastline around Al Marjan Island reshaped itself month by month as the multibillion-dollar Wynn resort advanced, pulling developers toward a shoreline that only recently felt quiet. Even the updated federal sustainability rules from 2025 appear in small details – cooler buildings, wider pavements, and communities that settle in smoothly rather than slowly finding their rhythm.

The figures reinforce the feeling. In Dubai, the Land Department logged about 169,000 home sales in 2024 worth roughly AED 367 billion, the highest on record. By late 2025, real-estate transactions across all asset types had already passed AED 559 billion. Analysts expect roughly 60,000 to 70,000 new homes to be delivered in 2026 – one of the city’s largest handover years.

In Abu Dhabi, residential prices were more than 17% higher year-on-year in mid-2025, with Saadiyat and Yas Island leading demand and more than 33,000 homes underway for delivery through 2029. Meanwhile, Ras Al Khaimah saw deal values surge by about 117% to nearly AED 16 billion, driven largely by development around Al Marjan’s future resort corridor. Taken together, the numbers point to a market expanding quickly and on firmer footing than earlier cycles.

That sets the tone for the year to come, shaped mostly by what finally gets handed over. The projects sold in 2022 and 2023 are now completing, turning construction sites into real neighbourhoods. Rental pressure in mid-market apartments is already easing as new stock reaches residents, while villas and waterfront homes remain competitive because supply there is still limited. Developers are delivering communities that feel complete from the first day – schools, retail corners, shaded walkways – so early residents step into places that function immediately rather than waiting years for amenities to catch up.

All of this gives 2026 a noticeably different mood. People are choosing the UAE for longer chapters of their lives. Families settle quickly. Entrepreneurs stay for the stability as much as the pace. High-net-worth buyers continue to relocate under the Golden Visa program, one of the strongest draws in the region. And the population keeps rising, helped by a tax environment that rewards staying, not just investing. What once looked like a surge now feels like a steady movement – confident, continuous and adding depth to the market month after month.