Have some home buyers been priced out of Dubai property market?

With UAE property values increasing steadily over the past five years, some more cost-sensitive buyers have been priced out of the market, say industry experts.

For others, the consistent rise in property prices has meant recalibrating their home aspirations, says Matthew Green, head of research at property consultancy CBRE Mena.

“Many end users have been forced to consider more secondary and tertiary locations towards the Al Qudra corridor and along the E611, and even further afield, as values have increased across popular central locations like [Dubai's] Downtown, Palm Jumeirah, Jumeirah Park and Jumeirah Living,” he adds.

John Lyons, managing director of Espace Real Estate, says some mid-income professionals, particularly potential first-time buyers, are more cautious and are carefully weighing up whether to rent or buy. However, there are no widespread delays or any “meaningful withdrawal” from the market, he adds.

Many buyers who waited for a price correction over the past couple of years found themselves priced out of preferred locations. As a result, buyers are now more pragmatic and less focused on timing the market than on securing the right property, particularly when it suits their lifestyle and long-term plans, Mr Lyons says.

Rather than delaying ownership, there is greater participation from mid-income professionals, driven primarily by rising rents and improved access to off-plan housing, according to Farooq Syed, chief executive of Springfield Properties.

“Extended payment plans, lower initial capital requirements and improved mortgage availability have made ownership more achievable for salaried households, particularly as rental renewals continue to place pressure on monthly budgets,” he says.

Price correction on the cards?

Overall property prices in Dubai have risen close to 13 per cent in the 12 months to the end of the third quarter of 2025, while quarter-on-quarter they rose around 3 per cent, data from CBRE shows.

While value growth has slowed from its highs over the past two years, supply is still not sufficient to help fully balance dynamics, with around 35,000 units completed across 2025, Mr Green estimates.

However, during 2026 and 2027, deliveries are likely to jump, with more than 70,000 units per year anticipated, which should help to keep a lid on price increases, he says.

Dubai’s residential market is expected to slow down in 2026, according to property consultancy ValuStrat real estate research team. This reflects a deceleration rather than a sharp correction, supported by strong population growth and sustained end-user demand, research shows.

Supply is still not sufficient to help fully balance dynamics Matthew Green ,

head of research, CBRE Mena

Affordability constraints and the impact of new supply are expected to limit price rises, particularly in communities with a high volume of scheduled handovers.