Parveen 
Dubai rents expected to ease in parts of the market as vacancy rises and demand shifts, but peak-season and prime areas remain resilient
A new report by fäm Properties indicates that logic-based decision-making will replace momentum-led buying in Dubai’s real estate market as it enters a more mature phase in 2026. The shift reflects a growing focus on long-term value rather than short-term hype.
Based on analytics from DXBInteract, which uses Dubai Land Department–verified data, the report highlights that future growth will favour developments offering strong fundamentals, reliable execution, genuine connectivity, lifestyle clarity, and true scarcity. Projects driven primarily by marketing momentum are expected to face increasing pressure.
Shift in Buyer Behaviour
While luxury real estate continues to show strong resilience, buyer behaviour is evolving. Both investors and end-users are expected to adopt a more disciplined approach, carefully evaluating price-to-value alignment, payment plan sustainability, construction quality, location strength, and developer credibility before making purchase decisions.
Firas Al Msaddi, CEO of fäm Properties, noted that while 2025 was largely momentum-driven, 2026 will mark a turning point. Buyers are expected to move beyond brand-led decisions and focus more closely on fundamentals, execution risk, and long-term usability.
Market Performance in 2025
The report highlights 2025 as a record-breaking year for Dubai’s real estate market. Between January and November, 197,263 property transactions were recorded, with a total value of AED 624.1 billion, surpassing previous annual records even before year-end.
This surge was largely fuelled by momentum-led demand. However, end-user activity strengthened, particularly among families choosing homeownership over renting, contributing to greater stability in established communities.
Dubai also continued to attract strong international capital inflows from Europe, the UK, CIS countries, India, Africa, and North America, alongside sustained growth in the commercial real estate sector.
Outlook for 2026
Looking ahead, the report forecasts a move toward selective, logic-driven purchasing, with Tier-1 developers expected to dominate off-plan demand due to proven delivery track records. Smaller or newer developers are likely to collaborate with established brokerages to build buyer confidence and mitigate execution risk.
Prime villas, branded residences, and waterfront developments are expected to retain strong pricing and liquidity due to limited supply. At the same time, rising competition from international developers—particularly from the United States—is likely to elevate development standards across Dubai.
Infrastructure as a Key Value Driver
Infrastructure development is identified as a major determinant of future value. Communities connected to the upcoming Dubai Metro Blue Line are expected to benefit disproportionately, as connectivity, walkability, and integrated urban planning increasingly influence pricing, demand, and long-term investment performance.
Source:ArabianBusiness
