Dubai Real Estate in 2026: A Buyer's Market? What Supply Data Reveals
Introduction
Many investors and prospective buyers interested in Dubai's real estate market may have heard the prediction that 2026 will bring a "buyer's market" with an abundant supply of new homes and affordable prices. However, actual data tells a different story. This article, incorporating expert analysis, delves into the truth of the Dubai real estate market in 2026.
The Gap Between Plans and Reality: The Truth About Dubai's Housing Supply
Market predictions are often based on the number of planned residential units, but the number of properties actually completed and handed over tends to be significantly lower. This "gap between plans and reality" is a crucial key to understanding the market in 2026.
According to data tracked by international real estate company Morgans International Realty, while 71,613 residential units are planned for delivery in Dubai in 2026, it is projected that less than half – only 34,740 units – will actually reach handover. This figure is significantly below general market expectations and recent supply performance.
This trend is also evident from past data:
- 2025 Performance: An initial forecast predicted 37,171 residential units would be supplied, but ultimately, only about 62% of those were handed over.
Since not all planned properties make it to market, it is currently unlikely that supply will significantly outweigh demand.
Expert Analysis of Market Trends
Elias Hannoush, founder and CEO of Morgans International Realty, comments on the situation:
"The realistic number of handovers is not at a level that will overwhelm the market's absorption capacity. Therefore, we cannot say that the market is structurally shifting to favor buyers."
Hannoush notes that the projected number of handovers in 2026 (approximately 34,740 units) is even lower than Dubai's annual average handovers over the past five years (approximately 35,500 units). As long as the inventory of completed properties remains limited and demand is stable, a widespread decline in property prices is unlikely.
Strategies for Smart Buying in 2026
So, how should prospective buyers navigate the Dubai real estate market in 2026? Experts suggest that instead of viewing the entire market as a "buyer's market," a more selective approach is necessary.
Not a 'Buyer's Market,' but a 'Selective Market'
The 2026 market will not be favorable for all buyers. Instead, it is more appropriately described as a "selective market," where "informed buyers" who know where, what, and when to buy will have an advantage. It will be crucial to identify specific opportunities where negotiation power becomes important.
Where are the Opportunities?
Experts point to the possibility of short-term buying opportunities emerging in specific areas. Specifically, these are areas characterized by:
- High-density, mid-market segments: Areas where multiple investor-driven projects are completed simultaneously.
In such areas, a temporary increase in supply can create room for buyers to negotiate. However, such opportunities are very short-lived, and once the initial supply is absorbed, competition quickly intensifies, and negotiation power diminishes.
What is the Biggest Risk?
The biggest risk in the 2026 market is not overpaying for a property or waiting too long to buy. Experts warn against "choosing the wrong property."
Understanding both supply forecasts and actual handover data, and focusing on properties likely to retain value in the long term, will lead to wise investment decisions.
Conclusion
The Dubai real estate market in 2026 is unlikely to become the widespread "buyer's market" that is widely anticipated. There is a significant discrepancy between housing supply plans and actual handover numbers, and demand remains robust.
However, there is no need for pessimism. By accurately understanding market trends and focusing on specific areas and timings, smart buyers can still find good opportunities. The key is not to be swayed by superficial predictions but to make careful property selections based on data.
Reference Article: Is 2026 really a buyer’s market? Dubai’s delivery data tells a different story - Khaleej Times