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By Ovalaute · 12 Jan ,2026 · News
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As 2026 approaches, the UAE real estate market is entering a more mature phase, characterized by diversified demand, increased supply, and a gradual rebalancing of prices following several years of accelerated growth. Dubai continues to lead market activity, while Abu Dhabi maintains steady momentum, reflecting broader confidence across the sector.
Recent reports indicate that rental rates in Dubai recorded double-digit growth during 2024 and 2025. However, market analysts anticipate a moderation in 2026, supported by new project completions and improved negotiating leverage for tenants. Despite this expected adjustment, the overall market outlook remains positive, underpinned by economic expansion, long-term residency initiatives, and sustained investor confidence.
Supply Expansion and Market Impact
According to international credit agencies, more than 150,000 residential units are expected to be delivered across the UAE between 2025 and 2027, with a significant share scheduled for completion in Dubai during 2026. This increase in supply is enhancing market depth, expanding buyer choice, and contributing to improved affordability while supporting long-term market stability.
Rental Market Trends
Following a period of exceptional rental growth, particularly in premium villa and waterfront communities, rental performance in 2026 is expected to normalize. Suburban areas such as Jumeirah Village Circle and Al Furjan may experience slight easing, while established locations including Creek Harbour and Expo City are likely to sustain strong occupancy levels due to infrastructure development and employment growth.
Buyer and Investor Outlook
End-users are expected to benefit from wider selection, competitive pricing, and more flexible developer payment structures. Investors, meanwhile, are likely to focus on projects offering clear value fundamentals, particularly within well-located, sustainable, and strategically planned communities.
Key Risks and Considerations
Market participants should continue to monitor construction delivery timelines, global economic conditions, currency movements, and the performance of lower-tier residential segments as new inventory enters the market.
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