The real estate sector in the United Arab Emirates witnessed a strong start in 2026, supported by increasing demand for residential and commercial properties, according to a report issued by UBS Bank. The report indicated that major real estate developers in the country recorded great momentum in sales, and projects under implementation reached record levels, supported by the high investment demand for the real estate sector.
Distinctive position
The report explained that real estate companies listed in the Emirates began the year 2026 in a distinguished position, as both Emaar and Aldar recorded record levels of contracted work in their annual financial results for the year 2025, which was reinforced by the demand for residential investment in the region, in addition to the strong momentum in the commercial real estate sector.
The report drew attention to the fact that real estate company stocks have provided strong performance in recent months, and are currently trading at a one-year forward P/E of 10 times, which is in line with their historical average.
According to the report, a large number of new residential units are expected to enter the market in the coming years.
Regarding the Dubai market, the report expects that 110,500 housing units will be delivered in 2026, compared to a ten-year average of 27,000 units, in light of population growth.
The report suggested that the market will witness a state of moderation and calm, given the current very high occupancy levels, as the bank believes that the market tends to stability. The report also indicated that real estate prices in Dubai remain competitive at the global level despite the strong increases recorded recently.
Despite the significant increase in prices, house prices in Dubai remain low in the global context. For example, prices in Dubai were 23% cheaper compared to Mumbai in 2025, which enhanced its continued investment attractiveness.
