The UAE's property market closed 2025 with record numbers—Dubai recorded AED 682.5 billion ($185.8 billion) across 215,700 transactions, while Abu Dhabi reached AED 164 billion ($44.6 billion) with 30% price appreciation.
After five years of consistent growth, the market is entering a different phase. Buyers are scrutinizing developer track records, infrastructure connectivity, and construction quality more carefully than brand names alone. As one industry CEO put it: "In 2025, momentum drove decisions, but 2026 will be the year when buyers operate with logic and discipline."
Blockchain Enters the Property Market
In May 2025, Dubai Land Department launched the first government-backed property tokenization platform in the Middle East. Working with Prypco and Ctrl Alt, the initiative uses the XRP Ledger to tokenize property ownership, creating digital tokens representing fractional shares in physical properties.
The system allows investors to buy shares in Dubai real estate starting at AED 2,000 ($545). The first tokenized apartment sold out in under two minutes, attracting 149 investors from 35 countries, with over 10,700 people on the waiting list.
Dubai Land Department projects the tokenized real estate market will reach $16 billion by 2033, representing roughly 7% of total property transactions. In May 2025 alone, $399 million worth of real estate was tokenized—about one in every six property deals that month.
The regulatory framework involves the Virtual Assets Regulatory Authority (VARA), the Central Bank, and Dubai Future Foundation, creating what developers call a "controlled innovation sandbox." Major deals have followed: MultiBank Group, MAG, and Mavryk signed a $3 billion tokenization agreement, while DAMAC partnered with MANTRA on a $1 billion portfolio tokenization.
The technology offers faster transactions, fractional ownership access, and 24/7 trading capabilities. But it's still early days. Currently, the platform only accepts dirham transactions and is limited to UAE ID cardholders, though international expansion is planned.
The Branded Residences Market
Dubai now leads in branded residences. The city has 61 completed branded developments with another 100 underway. By 2030, this number is expected to reach 250 projects—an 80% increase from current levels.
These properties command significant premiums. Branded residences average AED 3,288 ($895) per square foot compared to AED 2,321 ($632) for non-branded properties—a 42% difference. In 2024, 13,000 branded units were transacted, up 43% year-on-year.
Several high-profile projects are launching in 2026-2027:
Mercedes-Benz Places – Binghatti City represents the developer's largest project to date. The AED 30 billion development in Meydan spans 10 million square feet and includes luxury residences, retail boulevards, parks, mobility hubs, and wellness zones. The project launched in January 2026 as a self-contained community.
Bugatti Residences by Binghatti in Business Bay features 182 residences including Sky Mansion penthouses starting at AED 19 million. The building includes private car elevators and Bugatti-branded interiors, with handover scheduled for Q4 2026.
Armani Beach Residences brings together Giorgio Armani and Pritzker Prize-winning architect Tadao Ando for a limited collection of beachfront properties on Palm Jumeirah. The minimalist, Japanese-inspired design is set for completion in 2026.
Bulgari Lighthouse on Jumeirah Bay Island commands the highest prices in the branded segment at AED 10,668 per square foot. The development by Meraas offers 4- and 5-bedroom penthouses with Italian design aesthetics.
Knight Frank's research shows that 69% of high-net-worth individuals now express interest in branded residences, up from 59% in 2023. The focus is shifting from amenities to wellness, with new developments incorporating longevity clinics and community wellness centers rather than just flashy extras.
Infrastructure Determines Value
The Dubai Metro Blue Line is becoming a significant factor in property valuations. Communities connected to the new line—Dubai Creek Harbour, Festival City, Dubai Silicon Oasis, and International City—are seeing renewed buyer interest based on commute times and employment hub access.
Beyond metro connectivity, Etihad Rail is creating opportunities along logistics corridors. Dubai South and surrounding industrial zones are attracting investors with longer time horizons who see value in inter-emirate connectivity.
In Abu Dhabi, Aldar is investing AED 3.8 billion in developments near Zayed International Airport, including a gated community on Yas Island with 665 townhouses and villas, plus 448 apartments in Yas Residential Village. In Al Shamkha, the company is developing 2,000 studios and one- to three-bedroom units in the Alreeman community.
The Disney World Abu Dhabi announcement has particularly impacted Yas Island and Saadiyat Island, with luxury villa prices in these areas increasing 10-13% in 2025.
Developer Execution Matters More
As the market matures, buyers are paying closer attention to who's building their property. They're examining completion histories, escrow account transparency, and specific handover dates with penalty clauses for delays.
Emaar continues to show the strongest resale liquidity, particularly in Downtown Dubai, Dubai Hills, and Dubai Creek Harbour. Nakheel is gaining momentum with Palm Jebel Ali developments. Sobha maintains its reputation in the luxury villa segment, while Meraas focuses on differentiated lifestyle communities. Damac's branded collaborations keep it competitive in the off-plan market.
Buyers now verify RERA and Dubai Land Department registration before committing, review sale and purchase agreements for cancellation policies, and check developers' financial transparency. The question isn't just what's being built, but who's building it and whether they can deliver on time.
What This Means for 2026
The UAE attracted 9,800 millionaires in 2025—more than any country globally—bringing an estimated $63 billion in capital. The Golden Visa program has issued over 250,000 visas since 2021, creating structural long-term demand.
Technology is making property ownership more accessible through tokenization. Infrastructure projects are creating clear value in connected communities. And quality execution is separating successful projects from those struggling to find buyers.
Dubai and Abu Dhabi are moving in slightly different directions—Dubai with higher volume and innovation, Abu Dhabi with tighter supply and stronger price appreciation—but both markets are building for sustained growth.
