Dubai Property Market Shifts To Long-Term Investment Destination, Say Analysts

2026-05-26 04:26:57

(MENAFN- Khaleej Times) Dubai's real estate market is increasingly evolving into a long-term investment destination, with residents committing to home ownership faster and investor confidence remaining resilient despite regional geopolitical tensions.

According to Nagham Hassan, market analyst at eToro, a trading and investing platform, the average time for a renter in the UAE to become a homeowner has now dropped to just 4.8 years, highlighting a growing shift toward long-term residency and ownership rather than short-term property trading.

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The trend also reflects changing buyer behaviour in the UAE property market.

Dubai has also launched the First Time Home Buyer Programme to support individuals seeking to purchase their first home in the emirate by offering a range of exclusive benefits that make it easier to enter the property ownership market.

In 2025, data showed that the investor base expanded to more than 193,000 active participants, with resident investors accounting for over half of total investments by value – a trend analysts say reflects increasing market maturity and stronger long-term confidence in the UAE economy.

As reported by Khaleej Times earlier, industry experts noted that strong demand, fast-moving launches and limited supply in key communities are encouraging buyers to make quicker long-term purchasing decisions rather than waiting on the sidelines.

Dubai recorded Dh252 billion in real estate transactions during the first quarter of 2026, up 31 per cent year-on-year, following a record-breaking Dh917 billion in transactions during 2025. Meanwhile, property prices rose 9.81 per cent last year, moderating from the double-digit gains seen in previous years.

Despite heightened regional tensions earlier this year, Dubai's property sector showed resilience. February transactions reached Dh84 billion before slowing to Dh56 billion in March as buyers briefly paused amid geopolitical uncertainty. However, sales rebounded 23 per cent in April to Dh69 billion, signalling renewed confidence in the market.

The resilience has also extended to listed real estate developers, although share prices have lagged behind physical market performance.

Emaar Properties entered 2026 with a revenue backlog of Dh163.4 billion, up 29 per cent year-on-year, while Aldar Properties reported a 12 per cent increase in revenue and a 22 per cent rise in EBITDA, alongside total liquidity of Dh38.2 billion.

Hassan said a resolution in the regional conflict would act as a catalyst, unlocking the pent-up demand that has already proven itself in the physical market and accelerating the repricing of both stocks toward their fundamental value.

Analysts say the sector's long-term outlook remains supported by escrow-protected sales structures, recurring income streams and strong project pipelines, making major UAE developers relatively insulated from short-term market volatility.