UAE Property Market Q2 2026: A More Balanced Outlook

The UAE property market showed signs of settling into a more balanced rhythm during the second quarter of 2026. After several years of strong growth, buyers and tenants in Dubai and Abu Dhabi saw prices and rents ease from the previous quarter, according to Colliers. The shift does not erase the strength built up over the past year. In several parts of the market, annual growth remains substantial.

In Dubai, average apartment and villa sale prices fell 3% quarter-on-quarter. Apartment rents declined 4%, while villa rents eased 2%.

Affordability is playing a bigger role in where residents choose to live. Colliers also pointed to two other changes: more residents are moving from renting into homeownership, while a larger rental inventory is giving tenants more options.

Supply is part of that picture. Dubai received around 11,650 new homes in Q2, made up of roughly 9,200 apartments and 2,450 villas. A further 56,600 residential units are scheduled for completion before the end of 2026.

The Dubai Land Department has also introduced Flexi Rent. Participating landlords can offer monthly, quarterly, and semi-annual payment arrangements. For landlords and Property Management teams, that creates a different rhythm around rent collection and tenancy administration.

Abu Dhabi followed a similar quarterly pattern. Average apartment sale prices declined 3% from Q1, while villa prices eased 1%.

The annual numbers tell a fuller story. The price of Apartments remained 19% higher than a year earlier. Villa prices were up 10%.

Around 7,200 residential transactions were recorded during Q2. That was 8% lower than the previous quarter but 83% higher year-on-year. Off-plan properties continued to dominate, accounting for about 84% of transactions.

Rents also adjusted after strong increases through 2025 and early 2026. Apartment rents eased 2% quarter-on-quarter, and villa rents 3%. Compared with a year earlier, apartment rents were still 7% higher, and villa rents 5% higher.

In Abu Dhabi, around 2,200 homes were delivered during Q2. Another 3,200 homes are expected during the rest of 2026.

Commercial property tells a slightly different story. Demand for premium office space remained strong in both major cities.

Abu Dhabi Global Market on Al Maryah Island was operating at full occupancy and had an active waiting list. It is showing continued company demand for Grade A space.

In Dubai, as per Colliers, offices are standout performers, with off-plan Grade A projects continuing to support price growth across several locations.

The Northern Emirates also recorded a gentler residential market. Apartment rents eased by around 2% on average, with Sharjah seeing the largest quarterly adjustment at about 4%. Apartment sale prices moved down 3% in Sharjah and 2% in Ras Al Khaimah.

Development activity remained busy. Around 4,600 residential units were announced in Sharjah during Q2.

Across the Northern Emirates, roughly 7,450 homes are expected to be completed in 2026: 5,450 in Sharjah, 600 in Ajman, and 1,400 in Ras Al Khaimah.

Al Ain remained comparatively steady. Apartment rents were 7% higher year-on-year, and villa rents rose 4%. Office rents increased 3%, while retail rents were up 5%.

For UAE businesses, the Q2 figures point to a market that is broadening rather than simply racing upward.

Ref: Khaleej Times