Dubai is heading into 2026 with broad-based economic momentum, supported by strong real estate fundamentals, expanding infrastructure investment and sustained demand across multiple sectors, according to Al Bayan, citing ValuStrat’s Dubai Market Outlook 2026.
ValuStrat notes that Dubai’s economy is expected to grow by around 5%, driven by non-oil sectors including real estate, tourism, construction, financial services and logistics. Ongoing demographic growth and a maturing regulatory framework continue to reinforce the emirate’s position as a globally competitive investment destination.
Within real estate, the residential market is expected to remain on a positive trajectory, albeit at a more measured pace. ValuStrat forecasts capital gains of around 10% in 2026, down from 19.8% in 2025, signalling a transition toward market stability after several years of rapid growth. Villas and townhouses are expected to outperform apartments, with forecast price growth of 17.7% versus 7.4%, driven by limited supply and sustained demand for low-density, family-oriented housing.
The residential supply pipeline for 2026 is estimated at 131,234 units, with apartments accounting for 81% of new supply. ValuStrat cautions that construction delays may result in lower actual deliveries, helping to sustain pricing pressure in constrained segments. Rental growth is expected to stabilise at around 0%, reflecting affordability ceilings across established communities.
Dubai’s office market is forecast to remain one of the strongest-performing sectors, with capital values and rents expected to rise by around 15% in 2026, supported by corporate expansion and limited Grade A supply in prime locations.
Beyond property, ValuStrat highlights continued strength in hospitality, underpinned by Dubai’s growing hotel inventory and global tourism appeal, alongside persistent demand in industrial and logistics driven by trade and infrastructure investment. Retail performance is expected to remain shaped by structural shifts toward e-commerce, even as new shopping centres and mall expansions come online.
Overall, ValuStrat’s outlook suggests Dubai is not merely sustaining growth in 2026, but consolidating its position as one of the most dynamic and resilient global economies, with long-term fundamentals firmly in place.
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