The luxury real estate market in Dubai in 2026: figures, trends & outlook
Dubai's luxury real estate market is currently among the most attractive segments in the world for international investors, combining strong price growth, high transaction volumes, and a diversified offering.
In 2025, this momentum continued to intensify: prestigious villas, high-end apartments, and off-plan projects all demonstrated remarkable health, with significant price increases and volumes.
In this article, we analyze recent figures, projections for 2026, and the factors influencing the decisions of buyers and investors in Dubai's high-end real estate market.
📈 Key market data 2025
The latest statistics show robust growth in high-end property prices in Dubai:
- 📉 In 2025, average villa prices increased by approximately +30.7% year-on-year, with an average value of around **4.1 million AED** (~1 million €) for villas sold, reflecting sustained demand despite limited supply.
- 🏢 Apartments have also increased, with an average price increase of +14% (~1.4 million AED) in 2025.
- 🏘️ In 2025, nearly **165,983 real estate transactions** were recorded, totaling ≈ **323 billion AED** (~78 billion €), of which villas accounted for a value of ~142.2 billion AED.
- 📦 Despite a general rise in prices, apartments have maintained their popularity, with an average of around **1,921 AED/sq ft** (~523 €/m²), reflecting strong demand in the rental and residential segment.
These data indicate strong sectoral growth, driven by international buyers, wealthy expatriates and institutional investors seeking to secure premium assets in an economy without income tax.
📅 Outlook for 2026
Projections from leading real estate observers and analysts suggest that 2026 should continue the upward trend, but with a more stable and sustainable dynamic:
📊 Estimated price growth
- 📈 In premium areas, prices are expected to grow on average by **+6% to +10%** for 2026, reflecting a balanced absorption between supply and demand.
- 🏙️ Ultra-luxury segments (villas on Palm Jumeirah, Emirates Hills) could exceed this range thanks to the scarcity of supply and the interest of HNWI investors.
- 🏘️ Overall residential real estate continues to be supported by attractive off-plan programs, which could account for **60% to 65% of transactions** in 2026.
This moderate but positive projection reflects a stabilization after several years of very rapid growth, with the luxury segment less likely to undergo drastic correction thanks to its premium nature and the continued influx of international capital.
📍 Trends by property category
🏡 Luxury villas
- 📌 Luxury villas remain the most dynamic segment: their scarcity and family demand explain a rise higher than that of other categories.
- 🌴 Palm Jumeirah and Emirates Hills continue to attract the highest budgets, with 5-6 bedroom villas often between **16,000,000 and 25,000,000 AED** (~€4,000,000 to €6,800,000) estimated to be stable or slightly higher for 2026.
- 📐 In Dubai Hills Estate, 4-5 bedroom villas are expected to see their prices increase by **+5% or more** in 2026.
🏢 Luxury apartments and penthouses
- 🌆 In Downtown Dubai, a high-end 3-bedroom apartment can be priced between **4,200,000 and 12,600,000 AED** (~1,100,000 € to 3,400,000 €), with a slight increase expected for 2026.
- 🌊 In Palm Jumeirah, prices for high-end apartments are expected to grow by approximately +5% to +8% in 2026.
- 📊 Demand remains strong in well-connected areas such as Dubai Marina and Business Bay, where premium properties retain high liquidity.
🌍 Factors influencing the luxury market
Several structural forces explain why Dubai maintains a favorable trajectory for luxury real estate:
- ✨ **No income tax** and the possibility of freehold ownership for foreigners in certain areas enhance the attractiveness.
- 📊 Economic diversification, with sectors such as finance, technology and tourism, fosters sustained demand for high-end housing.
- 🏙️ Sustainable urban programs, integrating green technologies and smart home features, appeal to modern buyers.
- 📈 International tourism and investor mobility contribute to robust rental demand, with rental yields still attractive compared to major European metropolises.
📊 Performance outlook and market indicators
Even though ultra-luxury markets are not always the most liquid in terms of turnover, they offer solid wealth-building prospects:
- 💼 Some districts show comparable gross rental yields of **4%–6%** on high-end properties, which remains attractive to international investors.
- 🏡 The migration of wealth holders to Dubai (via attractive visa programs) fuels demand for premium properties with a defensive logic of asset securing.
- 📉 The relative scarcity in the most prestigious areas reduces the risk of a significant price drop, even with new deliveries.
💡 Advice for investors and sellers in 2026
Given this global dynamic, adopting a clear strategy is essential to capitalize on the luxury market:
- 📌 **Study premium areas** before positioning yourself: waterfront districts and branded residences tend to preserve value.
- 📐 **Prioritize new or recent properties** that meet international standards.
- 💼 **Measure rental yields and liquidity** according to wealth management objectives.
- 🏙️ **Analyze off-plan programs** to take advantage of attractive entry prices and flexible payment schedules.
- 🤝 **Surround yourself with local experts** to navigate the legal, tax and contractual conditions specific to Dubai.
Your luxury real estate project in Dubai
Dubai's luxury real estate market presents a unique combination of opportunities for discerning investors and demanding buyers.
If you would like to explore your options further, obtain figures, or receive personalized guidance, please
Propriétés De Charme customer service team , who will be happy to assist you with your project.
