Dubai’s residential property market recorded broadly stable asking prices in the third quarter of 2026, with most popular communities seeing price movements under 3 per cent, according to Bayut’s Q3 market report.
The report covers search trends and asking-price data across affordable, mid-tier, luxury, and ultra-luxury segments for both apartments and villas, and is accompanied by a UAE Market Sentiment Survey conducted across Bayut and dubizzle with over 2,000 respondents.
“What stands out this quarter is the range of communities attracting interest, from affordable apartments to established family neighbourhoods and prime waterfront homes. Across many of the popular areas in our report, asking prices have remained broadly steady, giving people more room to compare their options and plan their next move. Our combined UAE survey adds another dimension to that picture. Six in ten buyers surveyed were very confident or cautiously optimistic about the market over the next five years, and nearly half of renters had considered buying a home. That speaks to confidence in the UAE’s long-term prospects. People want to understand what they can afford, where they can find value and how a property fits their plans. Helping them answer those questions with clear information and trusted guidance through the tools we have on Bayut like TruEstimate and Dubai Transactions is how we can support that confidence and help them take the next step,” Haider Ali Khan, CEO of Bayut and Board Member of the Dubai Chamber of Digital Economy said in a statement.
On buyer sentiment, 60 per cent said they were very confident or cautiously optimistic about the property market over the next five years. Looking at the shorter term, 46 per cent expected prices to rise over the next 12 months, while 34 per cent expected them to stay flat. Among buyers, 72 per cent cited personal use as a reason for their purchase and 41 per cent cited investment, with respondents able to select both.
Nearly 45 per cent of renters surveyed had considered buying. Of those actively comparing the options, 52 per cent said long-term plans to stay in the UAE was their primary reason for considering a purchase, while 26 per cent of all renters who had thought about buying said they could not afford the downpayment.
In the apartment segment, Palm Jumeirah saw ultra-luxury asking prices rise 3.40 per cent quarter on quarter to AED 3,490 per square foot. JVC recorded an average asking price of AED 1,419 per square foot and an estimated rental yield of 7.10 per cent. Dubai Silicon Oasis led the affordable category with an estimated yield of 7.90 per cent, with studio asking prices averaging AED 556k and one-bedrooms at AED 856k.
In the villa segment, Palm Jumeirah four-bedroom properties averaged AED 44.10M in asking prices. Al Barari four-bedroom villas rose 8.20% to AED 29.6M, a move Bayut attributed to limited inventory and the community’s positioning among high-net-worth buyers. DAMAC Hills 2 led the affordable villa category at AED 1,054 per square foot.
On yields, Dubai Investments Park topped the affordable apartment category at 9.50 per cent, followed by Discovery Gardens at 8.50 per cent. Deira recorded the highest estimated yield in the affordable villa segment at 10.00 per cent. In the rental market, half of surveyed renters expected no change in rents over the next 12 months, with 25 per cent expecting decreases and 25 per cent expecting increases.
