After several years of rapid growth, the UAE real estate market, particularly in Dubai, may be entering a more balanced phase. According to a recent industry outlook, residential property prices are projected to see a modest correction over the next 12 to 18 months as new supply is delivered across the emirate.

180,000 New Units to Be Delivered in Dubai

Between 2026 and 2028, around 180,000 residential units are expected to be completed in Dubai. This translates to an average of approximately 60,000 units per year, significantly higher than the annual average recorded over the past five years.

With more properties reaching handover stage, the increase in available inventory is likely to slow price growth. In some segments, particularly mid-market apartments such as studios and one-bedroom units, slight price softening may occur due to higher supply levels.

However, the anticipated decline is described as modest rather than severe, suggesting a market normalization rather than a downturn.

Strong Fundamentals Continue to Support the UAE Real Estate Market

Despite the projected price moderation, the overall fundamentals of the UAE property sector remain strong:

• Continued population growth
• Steady inflow of high-net-worth individuals
• Ongoing demand for residential units
• Front-loaded payment plans supporting developer cash flow

These factors are expected to absorb a large portion of the new supply over time. Dubai’s global appeal, business-friendly policies, and stable economic environment continue to support long-term real estate demand.

Developer Sales May Moderate

After five years of record-breaking performance in both transaction volume and price appreciation, developer sales activity may see a slight slowdown. As more completed properties enter the market, pricing pressure could increase in certain segments.

In response, developers may become more selective in launching new projects and may adjust pricing strategies to align with current market conditions.

UAE Developers Expanding Internationally

With strong revenue backlogs and healthy financial positions built over recent years, some UAE-based developers are increasingly exploring opportunities beyond the domestic market. Expansion into international markets allows diversification while domestic sales activity stabilizes.

At the same time, smaller developers may face higher exposure to funding and execution risks compared to larger, well-capitalized players.

What This Means for Buyers and Investors

For property buyers and investors, the next 12 to 18 months could present:

• More negotiation flexibility
• A wider selection of ready units
• Potential value opportunities in mid-market apartments

Rather than signaling a downturn, the projected price adjustment reflects a transition toward a more sustainable growth cycle. Long-term demand drivers remain intact, reinforcing the UAE’s position as one of the region’s most resilient property markets.