UAE residential prices and rents are expected to grow at a slower pace in 2026 compared to previous years on the back of more supply entering the market, according to analysts.
Around 120,000 units are scheduled for handover in Dubai in 2026, which will βlikely put pressureβ, on prices and rents in the emirate, Anton Lopatin, senior director at Fitch Ratings told The National.
βWe expect UAE residential price and rent growth to continue moderating in 2026. A moderate correction is possible, driven by a widening supply-demand imbalance β particularly in Dubai,β Mr Lopatin said.
Prices and rents are already recording a slowdown in growth in Dubai this year, Fitch data shows, with prices rising by about 13 per cent year-on-year in November β down from roughly 18 per cent annual increase in January.
Rent growth is also easing on average, slowing to about 6 per cent year on year in November from 14 per cent in January.
βThe Dubai residential market is transitioning into a more balanced phase following several years of exceptional growth,β said Prathyusha Gurrapu, head of research at Cushman & Wakefield Core.
βPrice appreciation is forecast to moderate to mid-single-digit levels of around 5 to 8 per cent in 2026, a marked slowdown from the 12 to 22 per cent annual growth recorded during 2024β2025.β
Rents are also expected to βstabilise or record modest low single-digit growthβ as new inventory is delivered, she added.
Property prices and rents have been on an upward trajectory in the UAE since the pandemic as more people chose to relocate to the Emirates amid a growing economy and new opportunities.
Government initiatives such as residency permits for retired and remote workers, expansion of the 10-year golden visa programme have also helped to support the property market.
Dubaiβs population grew 4.47 per cent year-on-year, reaching 4.03 million residents as of October 2025 β an a
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