The UAE property market ended 2025 in continued growth in both prices and rents across all emirates, but 2026 could be different, according to a recent outlook by ValuStrat, a UAE-based consultant firm. According to a market report by the firm, the residential rents are expected to be broadly flat, but office rents are projected to rise by around 15 per cent.
Haider Tuaima, managing director and head of real estate Research at ValuStrat, was quoted by Arabian Business: “Dubai’s underlying demand drivers remain intact into 2026, but performance is likely to become more segmented. Our base case assumes slower overall residential price growth, with villas continuing to outperform apartments due to supply composition and lifestyle demand. In offices, the imbalance between prime demand and new supply remains the core support for continued rental and capital value growth.”
As for the Dubai rental market, ValuStrat forecasts flat residential rental growth (0 per cent) in 2026. But, there will be an over 15 per cent increase in rents for offices, thanks to supply constraints in prime markets.
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Dubai’s office market is expected to remain supply-constrained in prime submarkets, underpinning continued growth in both capital values and rents. ValuStrat forecasts around 15 per cent growth in office capital values and rents in 2026, moderating from the stronger gains recorded in 2025.
As for prices, the forecast is that residential prices will continue to rise in 2026, but at a slower pace and with a widening performance gap between property types. Villas and townhouses are forecast to increase by 17.7 per cent, significantly outperforming apartments, which are expected to rise by 7.4 per cent.
The research also revealed that the leasing markets are shaped by affordability constraints, evolving tenant preferences, and the balance between new supply and household formation.
It added that 153,122 square metres (1.65 million square feet) of office gross leasable area is expected to be delivered in 2026. This will take Dubai’s total office stock to 9.94 million square metres (107 million square feet).
Besides homes and offices, the study also has a positive outlook for the hospitality industry, thanks to Dubai’s positioning as a global tourism and events hub. In the industrial sector, demand is expected to continue outpacing supply, supporting further price growth.