Dubai residents who expect to stay in the emirate for several years may consider buying a home, while those who need flexibility or would use most of their savings for a deposit may be better placed to continue renting.
In an interview with Lana, Lewis Allsopp, chairman of Allsopp & Allsopp, said the decision depended on each resident’s circumstances, although demand for villas and townhouses showed that buyers continued to see value in ownership.
“That decision always comes down to individual circumstances, but what we’re seeing on the ground is that villa and townhouse buyers in particular continue to see long-term value,” Allsopp said.
Villa and townhouse purchases accounted for 44 per cent of Allsopp & Allsopp’s transaction volume during the first half of 2026 but represented 74 per cent of its total sales value.
“For anyone planning to stay in Dubai for several years, that’s a strong signal that ownership continues to make sense,” he said.
Echoing the sentiment, Zacky Sajjad, director of business development and client relations, said residents should consider how long they expect to stay in Dubai, their employment position and whether they can afford the deposit, mortgage and transaction costs.
“For residents who expect to remain in Dubai for at least five to seven years, have stable employment and can comfortably fund the deposit, transaction costs and mortgage repayments, purchasing can provide long-term security and protection from future rent increases,” Sajjad told Lana.
“However, renting may still be the better option for people who require flexibility, may relocate within a few years or would need to use most of their savings for the deposit.”
When does buying a home in Dubai make sense?
Buying may suit residents who plan to stay in Dubai for at least five to seven years and can meet the initial and continuing costs of ownership. Sajjad said residents should not compare their rent with the mortgage payment alone.
Service charges, maintenance, insurance, financing costs and acquisition fees can change the calculation.
“The decision should be based on personal circumstances and the specific property rather than a general belief that buying is always superior to renting,” he said. Residents should also consider whether the property will continue to meet their needs if their job, commute or family circumstances change.
When could renting be the better option?
Renting may suit residents who are unsure how long they will remain in Dubai, may move between communities or do not want to commit their savings to a property.
Tenants could also gain more choice in areas where housing supply is entering the market. However, Allsopp revealed that rents were showing signs of stabilisation in some communities.
“We are seeing early signs of stabilisation in a number of communities, particularly where new supply has come online,” he said, adding that however rents in areas with tenant demand continued to hold.
Sajjad, on the other hand, said the rental market was moving in different directions depending on the community and property type. Apartment rents were stabilising or declining in some areas with more supply, while rents for villas, waterfront homes and homes in family communities remained supported.
“Recent market evidence suggests tenants have gained more negotiating power in areas such as Jumeirah Village Circle, Arjan, Dubai Silicon Oasis, Discovery Gardens and Dubai Sports City, where new handovers are increasing competition among landlords. By contrast, locations such as Dubai Hills Estate, Arabian Ranches, Jumeirah Golf Estates and Tilal Al Ghaf remain supported by limited villa availability and strong family demand. We should therefore avoid talking about a single Dubai rental trend,” he explained.
“The direction of rents now depends increasingly on the balance between new supply and tenant demand within each individual community as Dubai is maturing and the occupied geographic territory is growing,” he added.
Are Dubai property prices currently too high for first-time buyers?
Affordability has become harder for some end-users and first-time buyers following increases in property prices and rents since 2020, according to Sajjad.
“The affordability issue is particularly noticeable in established central locations, waterfront communities and popular family villa developments. Nevertheless, Dubai is not one uniform market. More affordable opportunities remain available in emerging and apartment led communities, although buyers may need to compromise on location, property size, commute or completion status,” he said.
Villa and townhouse prices across the Dubai market increased by 17 per cent year-on-year, according to figures supplied by Allsopp. Allsopp & Allsopp further recorded an average villa and townhouse sales price of AED9.4 million during the first half of 2026. Apartment prices recorded by the agency increased by almost 5 per cent year-on-year to an average of AED2.56 million.
“Our transaction mix tells a broader story too – apartment prices, which remain more accessible, were also up nearly 5 per cent year-on-year in our own sales, at an average of AED 2.56 million, so there’s still real activity across a range of price points, not just at the top end,” he said.
“The greater concern is not simply the headline purchase price, but whether households are stretching their finances too far,” Sajjad explained, adding that buyers should test whether they could continue meeting mortgage payments if their circumstances changed, retain savings for emergencies and avoid assuming that prices or rental income would continue rising at the same rate, he added.
Which Dubai communities offer value?
Allsopp & Allsopp’s transaction data identified Jumeirah Golf Estates, The Springs and Damac Hills 2 as its leading villa and townhouse communities during 2026. The communities – according to Allsopp – offered space, privacy and amenities relative to price.
Dubai Marina, Downtown Dubai and Jumeirah Beach Residence were the agency’s leading apartment areas by transaction volume. Allsopp said the figures demonstrated the continued pull of those Dubai addresses.
Sajjad identified Town Square, Dubai South, Arjan, Dubai Silicon Oasis and parts of Jumeirah Village Circle as areas where buyers could find entry prices below those in central Dubai.
For renters, he said Jumeirah Village Circle, Arjan, Dubai Silicon Oasis, Discovery Gardens and Dubai Sports City provided more choice and, in some cases, more room to negotiate. Business Bay and Dubai South required assessment because of the volume of supply entering those locations, he added.
“Value should not be confused with simply being inexpensive,” Sajjad said.
“A genuinely good value property should combine an appropriate purchase price with realistic rental demand, manageable service charges, good accessibility, suitable amenities, reputable property management and a credible future supply position,” he said, adding properties in the same community could produce different results depending on building condition, management and location.
Is Dubai’s property market still growing?
Allsopp said Dubai recorded AED220 billion in property sales during the first half of 2026, making it one of the highest half-year totals on record. The figure was below the first half of 2025, when the market recorded 91,972 transactions worth AED262.6 billion.
“We’re seeing a market that’s normalising from an exceptional prior year rather than one that’s slowing structurally,” Allsopp said, adding that transaction volume declined by 30 per cent year-on-year, while its average sales price increased by 10 per cent.
“So pricing strength held firm even as volumes normalised, that’s really the story of the first half,” he said.
Sajjad said Dubai’s market remained active but was entering a phase in which buyers were paying more attention to price, supply, service charges, developers and property type.
He cited Dubai Land Department data showing total real estate transactions of AED252 billion during the first quarter of 2026, an increase of 31 per cent in value and 6 per cent in volume from a year earlier.
Residential transactions worth about AED225.7 billion were reported during the first half of the year, he added. Some market reports showed that transaction volumes had moderated from the levels recorded in 2025.
“I would describe the current market as normalising rather than experiencing a broad slowdown. Buyers are becoming more price sensitive, investors are scrutinising supply pipelines and service charges more carefully, and performance is increasingly dependent on the individual location, developer and property type,” Sajjad said.
Has the regional security situation affected buyers?
Regional developments prompted some buyers to take more time before completing a purchase from March onwards, Allsopp said. “There’s no question regional developments prompted a more considered pace from buyers from March onwards,” he said.
However, Allsopp & Allsopp’s average sales price remained 10 per cent higher year-on-year. British buyers were the agency’s largest nationality group, accounting for 28 per cent of transactions. They were followed by Indian, Russian, Lebanese and French buyers.
“That tells us confidence in Dubai as a long-term market wasn’t fundamentally shaken,” Allsopp said.
Sajjad said the security situation had caused caution among some overseas buyers who were less familiar with the region. Some buyers delayed decisions, requested more information or focused on completed properties and assets that could be resold.
However, transaction and investment figures did not indicate a withdrawal from the market, he said. “The key distinction is between a short-term change in sentiment and a structural deterioration in demand. At present, we are seeing more selectivity and caution rather than a widespread withdrawal from the market,” Sajjad said.
Is Dubai attracting safe-haven property investment?
Allsopp said investor caution and safe-haven demand were occurring at the same time. “Both are true simultaneously,” he said. “Some investors clearly took a more cautious approach in the immediate aftermath of regional developments.”
Cash purchases accounted for 46 per cent of Allsopp & Allsopp’s transactions, while financed purchases represented 54 per cent. The split was broadly in line with recent periods, he said.
“We’re still seeing a healthy mix of end-users and investors continuing to see long-term value in Dubai property, not a market dominated by nervous short-term sentiment.”
Sajjad said Dubai continued to attract buyers because of its political system, infrastructure, regulation, transport links and environment for capital and families. He cited Dubai Land Department figures showing foreign property investment of AED148.35 billion in the first quarter of 2026, an annual increase of 26 per cent.
At the same time, some buyers were taking longer to commit and were focusing on completed properties, developers with delivery records and assets producing rental income.
“Dubai can therefore continue attracting safe haven capital while also experiencing short-term caution. The two are not mutually exclusive,” Sajjad said.
Could conflict raise construction costs or delay projects?
Sajjad said disruption to shipping routes could increase fuel prices, freight charges, marine insurance costs and shipping times. Disruption around the Strait of Hormuz had contributed to increases in freight costs and reductions in regional economic forecasts, he said.
The effect on each project would depend on the length of the disruption, procurement agreements, contractor capacity and whether materials had been purchased or prices fixed in advance, he explained.
“The immediate impact may be more visible through reduced contractor margins, procurement substitutions or delayed delivery rather than an automatic increase in agreed property prices. Nevertheless, prolonged disruption could place upward pressure on the pricing of future launches and increase completion risk for projects with weak financial or procurement structures,” Sajjad said.
What should buyers check before purchasing?
Allsopp said buyers should work with a licensed agency, understand the property they were purchasing and avoid making decisions based on market sentiment.
“The fundamentals haven’t changed: work with a licensed, reputable agency, understand exactly what you’re buying whether that’s off-plan or secondary, and don’t let short-term market sentiment drive long-term decisions,” he said.
In addition, Sajjad said buyers should check completed transaction records rather than rely only on property advertisements or promotional claims. Off-plan buyers should examine the developer’s delivery record, project registration, escrow arrangements, payment schedule, completion clauses and the amount of supply planned for the surrounding area.
Buyers purchasing completed properties should check the title deed, service-charge history, building condition, maintenance records, tenancy status and approvals for property alterations. They should also budget for acquisition and ownership costs and seek legal, technical and valuation advice where required.
“Most importantly, purchasers should distinguish between buying a good property and simply buying into a strong overall market. A rising market does not remove asset specific risks,” Sajjad said.
What is the outlook for Dubai prices and rents?
Allsopp expects the market to continue stabilising during the second half of 2026, with villas and townhouses remaining the source of price growth.
“We expect continued stabilisation through H2 2026, with villa and townhouse demand remaining the primary driver of price growth. Our own June figures give us real confidence heading into H2 – villa and townhouse transaction volume was up 17% month-on-month, with average sale price up almost 22% to AED 8.36 million,” he said.
Sajjad expects growth to continue at a slower rate, with results varying by property type and community. Completed homes in communities with less competing supply could retain demand, while villas and family developments could perform above apartment markets with more projects due for completion.
Apartment prices in areas with large handover pipelines could remain unchanged, record slower growth or see adjustments, he said. Rents could become more stable overall, with some apartment rents remaining flat or declining while villa rents hold. The risks included continued geopolitical disruption, a reduction in overseas buyer confidence and delays to trade and travel.
“The most important point is that Dubai is transitioning from a market in which broad momentum lifted almost every segment to one in which asset selection will matter much more. Future performance will increasingly be determined by location, build quality, developer reputation, service charges, infrastructure, community maturity and competing supply,” Sajjad said.
Allsopp said Dubai’s results during the first half of 2026 showed demand had continued despite a period of uncertainty.
“Dubai’s H1 2026 story is one of resilience rather than retreat, and our own transaction data across communities, price points, and buyer nationalities reflects that clearly. A market that can absorb a genuinely uncertain few months and still post double-digit price growth in its strongest segment tells you a great deal about the underlying strength of demand here,” he said.
