Strong Investor Demand Continues to Underpin UAE Real Estate Growth into 2026
The UAE real estate market is entering 2026 with sustained momentum, supported by strong investor participation, population growth, and a resilient economic environment. Both Dubai and Abu Dhabi continue to demonstrate robust performance, with each emirate reflecting distinct but complementary market dynamics that reinforce the country’s position as a global real estate investment hub.
Dubai remains the most liquid property market in the UAE, recording record-breaking transaction volumes throughout 2025. In the first half of the year alone, the emirate registered 98,726 sales transactions valued at AED 327 billion, driven by a combination of end-user demand and deep investor engagement. Residential price growth remained firm across both apartments and villas, while rental values continued to rise despite an expanding supply pipeline.
Established urban centres such as Dubai Marina, Downtown Dubai, and Business Bay continued to attract consistent transactional activity, supported by strong rental absorption and limited availability of high-quality stock. Waterfront and lifestyle-led destinations, including Palm Jumeirah, also maintained pricing resilience as demand from high-net-worth buyers and international investors remained steady.
Mid-market communities such as Jumeirah Village Circle and master-planned family-oriented districts like Dubai Hills Estate played a critical role in sustaining transaction volumes. These locations benefited from affordability relative to prime areas, strong end-user demand, and continued infrastructure investment.
Abu Dhabi, meanwhile, posted a notable acceleration in activity after a slower start to 2025. The capital recorded AED 54 billion in transactions during the first half of the year, representing a 38% increase in residential sales. Demand for ready homes strengthened, while rental values rose sharply due to population growth and constrained availability of completed, high-quality inventory. Apartment rents increased by 6% quarter-on-quarter, while villa rents climbed by up to 11%, reinforcing Abu Dhabi’s improving yield profile.
Together, Dubai and Abu Dhabi are shaping a property narrative defined by sustained confidence, broad-based capital inflows, and a maturing market cycle. This environment continues to attract both regional and international buyers seeking long-term value, regulatory clarity, and stable returns.
Developer-led activity remains a cornerstone of this growth. Leading master developers such as Emaar, DAMAC, Sobha Realty, Nakheel, Meraas, and Select Group continued to anchor buyer confidence through large-scale master communities, phased delivery strategies, and diversified product offerings.
In line with these market dynamics, international developers are increasingly entering the UAE. India-based Casagrand has officially broken ground on Casagrand HERMINA, a premium residential development located on Dubai Islands. Valued at AED 420 million, the project reflects rising investor interest in emerging coastal destinations. Dubai Islands recorded a 156% increase in transaction volumes in 2025, positioning it among the fastest-growing districts in the emirate.
Casagrand HERMINA comprises 131 residences with prices starting from AED 1.92 million and a structured 60/40 payment plan. The project reflects a broader trend of boutique, design-led developments targeting both investors and end-users seeking lifestyle-oriented living with long-term appreciation potential.
Abu Dhabi has also seen a steady pipeline of new launches aligned with premium island living. Merath Development recently announced Vista Del Mar on Yas Island, a limited collection of 90 residences developed in collaboration with Metropolitan Capital Real Estate. The project offers one- to four-bedroom apartments, with prices starting from AED 1.9 million and handover scheduled for Q4 2026. Yas Island continues to benefit from strong infrastructure, entertainment-led demand, and limited high-quality residential supply.
As the UAE progresses deeper into 2026, the outlook across both emirates remains constructive. Dubai’s sustained transaction volumes and persistent price growth point to enduring investor appetite, while Abu Dhabi’s rising sales activity and strengthening rental performance highlight a market benefiting from stability and long-term demand fundamentals.
With supply expanding in a measured manner and absorption levels remaining healthy, the UAE property market continues to balance growth with resilience. Economic diversification, population inflows, and global investor confidence remain key anchors supporting the country’s position as one of the world’s most dynamic and investable real estate markets.
At Aurantius Real Estate, we closely track these market movements to help investors and end-users identify opportunities aligned with long-term value, credible developers, and high-demand locations. As the UAE market evolves, informed strategy and disciplined selection remain central to successful property investment decisions.
