Dubai: A survey conducted by the real estate platforms Bayut and Dubizzle, which included a sample of tenants and buyers, revealed that 46% of buyers participating in the survey expect property prices to rise during the next 12 months. About 45% of tenants reported that they had considered buying a property instead of renting, and 52% of all participants in the survey confirmed that planning to live in the UAE in the long term is the main reason behind their thinking about buying.
Matt Gregory, Senior Director of Strategy at Dubizzle Group, said at a press conference reviewing the Dubai and Abu Dhabi real estate market report for the third quarter of 2026 that expectations of rising prices reflect a positive outlook among a segment of buyers, supported by the UAE’s attractiveness for living, working and investing, and the continued influx of residents and investors.
Data from the Bayut platform showed relative stability in the average advertised prices per square foot in the most sought-after areas for buying properties in the economy and middle categories in Dubai, while Dubai Silicon Oasis topped the list of the most searched areas for buying apartments in the ‘low-priced apartments category’, while Dubai Silicon Oasis, Dubai Sports City, and Al Nahda in Dubai stood out among the most searched areas for renting apartments in the low-priced apartments category.
Real estate survey
Specifically, a survey conducted by the real estate platforms Bayut and Dubizzle, with the participation of 2,014 tenants and buyers, revealed that 46% of the buyers surveyed expect property prices to rise over the next 12 months, while 60% expressed strong confidence or cautious optimism about the market's performance over the next five years. About 72% of participants identified ‘personal use’ as their primary purpose for purchasing the property, while 41% cited 'investment,' with the possibility of selecting more than one purpose.
Around 45% of the tenants surveyed reported that they had considered buying a property instead of renting, including 18% who said they were currently comparing the two options. 26% indicated that the inability to afford the down payment was a barrier to ownership, while 52% confirmed that planning to live in the UAE for the long term was the main reason behind their consideration of buying.
Positive outlook
Matt Gregory, Senior Director of Strategy at Dubizzle Group, said that expectations of rising prices reflect a positive outlook among a segment of buyers. Picture credit: SuppliedIn addition, Matt Gregory, Senior Director of Strategy at Dubizzle Group, said that expectations of rising prices reflect a positive outlook among a segment of buyers, supported by the UAE’s attractiveness for living, working and investing, population growth, and the continued influx of residents and investors, which contributes to supporting demand for residential units of all categories.
He said that transaction data indicates a gradual increase in demand for real estate in the country, reflecting the growing interest of buyers in the market. He pointed out that the development of infrastructure, transportation networks, facilities and services, along with the expansion in the development of integrated residential communities, enhances the attractiveness of residential areas and provides diverse options for individuals and families wishing to move to the UAE or settle there in the long term.
He pointed out that the survey results reflect the participants' current expectations and do not represent a guarantee of price increases in the coming period, stressing the importance of monitoring actual real estate transaction data, price trends, and the size of new supply to assess market developments.
Dubai real estate market
Data from the Bayut platform showed relative stability in the average advertised prices per square foot in the most sought-after areas for purchasing properties in the economy and middle categories in Dubai, as changes in most cases remained below 3% during the third quarter of 2026. Changes in luxury and ultra-luxury areas also remained limited, not exceeding 2% in most cases, with the exception of some areas that recorded higher increases.
Bayut’s data reflected the continued interest of those looking to buy apartments in Dubai in a variety of areas that meet different needs and budgets, from competitively priced units to luxury and ultra-luxury apartments.
Apartment sales market
Dubai Silicon Oasis topped the list of most searched areas for buying apartments in the 'low-priced apartments' category, with the average price of a studio apartment reaching approximately AED556,000 compared to AED856,000 for a one-bedroom apartment. The area recorded an estimated rental yield of 7.9%. Dubai Sports City and Dubai South also emerged as preferred options for buyers seeking affordable apartments.
As for mid-priced apartments, Jumeirah Village Circle and Business Bay continued to attract the attention of those looking for apartments in this category. The average advertised price per square foot in Jumeirah Village Circle was around AED1,419, with an estimated rental yield of 7.1%, while the average advertised price per square foot in Business Bay was around 2,158 dirhams.
Dubai Marina, Downtown Dubai, and Dubai Hills Estate attracted the attention of those seeking luxury apartments, while Palm Jumeirah and Bluewaters Island stood out in the ultra-luxury apartment category. The average advertised price per square foot for ultra-luxury apartments on Palm Jumeirah saw a 3.4% increase compared to the second quarter of 2026, reaching AED3,490.
Villa sales market
Research trends showed continued interest from buyers in villas in various areas of Dubai, with Damac Hills 2 topping the list of most searched areas within the low-priced villa category during the third quarter of 2026, along with Rakan and Dubai South. The average advertised price per square foot in Damac Hills 2 was around AED1,054.
As for the mid-priced villas category, Damac Lagoons came out on top as the most searched area in this category, with an average advertised price per square foot of AED1,499, while Arabian Ranches 3 and Al Furjan continued to attract the attention of those looking for villas in the same category.
Dubai Hills Estate, Arabian Ranches, Al Barari, and Palm Jumeirah maintained their presence among the most searched areas for buying luxury and ultra-luxury villas, while the average advertised price for four-bedroom villas in Palm Jumeirah reached approximately AED44.10 million, while the average advertised price for four-bedroom villas in Al Barari increased by 8.20% to reach AED29.6 million.
Apartment rentals
In terms of rentals, Dubai Silicon Oasis, Dubai Sports City, and Al Nahda in Dubai emerged as the most sought-after areas for renting apartments in the low-priced apartment category, with the average annual rent for studios in Dubai Silicon Oasis reaching AED45,500, while the average annual rent for one-bedroom apartments reached approximately AED63,400.
Jumeirah Village Circle, Business Bay, and Arjan were among the most prominent areas that attracted the attention of those looking to rent apartments at average prices, with a decline in the average advertised rents in these areas.
In the luxury and ultra-luxury apartment category, Dubai Marina, Downtown Dubai, and Meydan emerged as the most searched areas for luxury apartment rentals, with slight decreases in average advertised rents. Meanwhile, Palm Jumeirah, Bluewaters Island, and Al Barari continued to attract those seeking ultra-luxury apartments.
As for villas, Damac Hills 2, Mirdif, and Dubai South topped the list of the most searched areas for renting low-priced villas. In the middle category, Damac Lagoons, Arabian Ranches 3, and Jumeirah Village Circle emerged as preferred options for tenants. For their part, luxury villas in Dubai Hills Estate, Mohammed Bin Rashid City, and Tilal Al Ghaf attracted the attention of those looking for distinguished residential options.
As for the ultra-luxury villa category, Palm Jumeirah, Jumeirah Islands, and Al Barari emerged as the most sought-after destinations for rent.
Abu Dhabi real estate market
In the emirate of Abu Dhabi, the report revealed that well-known residential areas in Abu Dhabi maintained the interest of those looking to buy real estate during the third quarter of 2026, amid relatively stable prices and minor changes in a number of areas.
Al Ghadeer topped the list of the most searched areas for buying low-priced apartments, while Al Reef and Al Shamkha emerged as preferred options in the same category.
As for the category of mid-priced apartments, Al Reem Island topped the list of the most searched areas, followed by Masdar City and Bani Yas, with the latter two areas recording an increase in the average price per square foot.
Yas Island and Al Raha Beach attracted the attention of those looking for luxury apartments, while Saadiyat Island and the Marina topped the list of the most attractive areas for those looking for ultra-luxury apartments.
In the villa category, Al Shamkha and Al Reef topped the list of the most sought-after areas within the low-priced villa category, while Al Raha Gardens and Zayed City maintained their position as preferred destinations for those looking for villas within the mid-priced category.
In contrast, Yas Island and Al Raha Beach continued to be the top choices for those seeking luxury villas. Those looking for ultra-luxury villas showed interest in both Nurai Island and Saadiyat Island.
The average price per square foot for low- and mid-range apartments in Al Ghadeer, Al Shamkha, Masdar City, and Baniyas saw increases ranging from 3% to 9.2% during the third quarter of 2026. Mid-range apartments in Baniyas recorded the highest increase at 9.2%, followed by low-priced apartments in Al Ghadeer at 6.2%. The average price per square foot for apartments on Al Maryah Island also rose by 3.2% during the same period.
In the rental sector, Khalifa City and Reem Island emerged as the most searched areas for renting low and medium-priced apartments respectively, while Zayed City topped the list of the most searched areas for renting low-priced villas, and Khalifa City stood out in the category of medium-priced villas.
As for the luxury and ultra-luxury apartment categories, Al Raha Beach and Saadiyat Island emerged as the most searched areas for rent, while Yas Island and Saadiyat Island topped the list of preferred areas for those looking to rent villas in the same two categories.
Highest rental yields in Dubai
Several areas in Dubai recorded varying estimated rental returns, depending on the property category and location. In the low-priced apartment category, the Dubai Investments Park area recorded the highest estimated rental return within the category at 9.5%, followed by Discovery Gardens at 8.5%, and then Remram Community at 8.4%.
The estimated rental yield in Living Legends reached 7.5%, followed by Town Square at 7.4% within the mid-priced apartments category. In the luxury apartments category, Al Safouh recorded an estimated rental yield of 7.1%, while Al Barari achieved the highest estimated yield within the ultra-luxury apartments category at 6.3%.
The Deira area recorded the highest estimated rental yield within the low-priced villas category at 10%, while the yield in both International City and Rakan reached 6.3%. As for the medium-priced villas category, Sustainable City recorded an estimated rental yield of 6.10%, followed by Damac Lagoons at 5.7%, and then Jumeirah Village Circle at 5.5%.
For their part, Jumeirah Golf Estates and Tilal Al Ghaf recorded the highest estimated rental yield in the luxury and ultra-luxury villas category at 5.5%, while Al Barari achieved the highest estimated rental yield within the ultra-luxury villas category at 4.9%.
