UAE property prices are projected to experience a moderate decline over the next 12 to 18 months as a significant wave of new residential supply enters the Dubai market, according to Moody’s Ratings. The agency forecasts that approximately 180,000 new housing units will be delivered between 2026 and 2028, averaging 60,000 units annually, well above the historical average of 30,000 to 40,000 units recorded over the past five years.
Analysts indicate that the increase in completions is likely to slow overall price growth, with modest outright declines expected, particularly in the mid-market apartment segment, including studios and one-bedroom units, where supply remains elevated. After five years of exceptional growth, UAE property prices are expected to stabilize as market dynamics shift toward a more balanced supply-demand environment.
Despite the anticipated softening, fundamentals remain supportive. Continued population growth and sustained inflows of high-net-worth individuals are expected to absorb a substantial portion of new inventory. According to this UAE property news update, developers maintain strong financial positions backed by solid revenue backlogs and robust cash generation.
However, as domestic reinvestment opportunities moderate, several UAE developers are increasingly pursuing geographic diversification, expanding into international markets to sustain long-term growth. At the same time, UAE property prices adjust to the evolving cycle.
