UAE Property Prices to Cool in 2026 Amid 150,000 New Homes
<p><strong>Dubai Property Market Poised for More Balance as New Supply Arrives in 2026</strong></p><p><strong>Dubai:</strong> The UAE’s property market, known for rapid price and rent increases, is set for a new phase starting in 2026. Moody’s Ratings forecasts a significant influx of homes, creating better balance between supply and demand and offering potential relief for renters and buyers alike.</p><h3>Surge in Housing Supply</h3><p>Over 150,000 new apartments and villas are expected to be completed between 2025 and 2027, boosting Dubai’s housing stock by nearly 20%. Moody’s anticipates a “modest price correction” beginning in 2026, which could ease upward pressure on prices and rents. Buyers may gain stronger negotiation power, while renters could see slower rent growth.</p><h3>Demand Remains Strong</h3><p>The anticipated moderation in prices is not due to weak demand. Dubai’s population grew 6% in 2024 to 3.9 million, fueled by economic growth and visa reforms encouraging long-term residency. Smaller household sizes and continued interest in luxury properties support sustained demand. The city now hosts over 80,000 millionaires, with 590 ultra-luxury homes priced above Dh20 million sold in Q1 2025 alone.</p><h3>Apartments vs. Villas</h3><p>Villas have outperformed apartments since 2020, with 20% price growth in 2024, compared to 18% for apartments. Moody’s expects villa demand to remain solid but moderate as more communities are completed, while mid-market apartments could see sharper corrections if supply outpaces demand, offering potential bargains for buyers.</p><h3>Strong Developers and Safer Market</h3><p>Major developers like Emaar are financially resilient, with record backlogs of Dh129 billion in 2025, improved leverage ratios (1.4x vs 4.8x in 2020), and combined profits of Dh46 billion among the top six developers. This stability ensures projects progress even amid price adjustments.</p><h3>Enhanced Buyer Protections</h3><p>Regulatory reforms strengthen market stability. Off-plan buyers benefit from escrow accounts, stricter launch requirements, and controlled access to funds. Sharjah’s new 2025 escrow law aligns with Dubai and Abu Dhabi, boosting buyer confidence and reducing risks of stalled projects.</p><h3>What It Means for Residents and Investors</h3><p><strong>Buyers:</strong> More choice and negotiation opportunities from 2026.</p><p><strong>Renters:</strong> Potential relief, especially in apartments.</p><p><strong>Investors:</strong> Villas and luxury homes remain attractive, though competition is rising.</p><h3>Outlook</h3><p>Despite a modest correction, Moody’s sees the UAE property market as stable and resilient. Strong demand, wealthy inflows, financially secure developers, and tighter regulations suggest the coming years could bring a more balanced and sustainable market, combining affordability with continued growth.</p>