Dubai property market insight and predictions

With many wealthy homeowners considering a move abroad, Bardia Eshghi of Grand Lux Properties in Dubai shares his thoughts on how the city's luxury property market is changing, and what buyers need to know:

Strategic investment

"Dubai's evolution into a global wealth hub means capital preservation and long-term appreciation are now the key drivers, resulting in investors becoming more strategic. The focus is shifting from short-term flips to high-liquidity, long-term assets such as waterfront villas, branded residences and prime apartments.

Prime residential villas have delivered 8-15% annual ROI over the past few years, depending on community and build quality. Ultra-prime waterfront continues to appreciate as supply cannot keep up with global demand.

The rise of branded residences

Off-plan launches in premium locations show 20–35% ROI on resale upon handover, especially for branded units. In 2026, branded residences will continue to outperform the wider market as global buyers lean towards security, service and lifestyle consistency. The value is no longer just in the name; it's in the curated living experience that only top-tier hotel partnerships can deliver.

Hot locations and communities

Palm Jumeirah remains the benchmark for luxury living, but Palm Jebel Ali is set to define the next decade with its scale, privacy and shoreline offering. Meanwhile, Dubai Water Canal and City Walk will attract lifestyle-focused buyers seeking premium urban living.

Buyers are gravitating towards established, well-planned communities where the lifestyle is immediate and proven. Palm Jumeirah, Jumeirah Bay, District One and Dubai Hills will dominate demand, while Palm Jebel Ali will emerge as Dubai's next major long-term powerhouse.

Waterfront appeal

Waterfront properties will continue to command a significant premium due to extreme scarcity. Buyers want views, privacy and a resort-like lifestyle. In Dubai, genuine beachfront or uninterrupted water views have become the most desirable and defensible asset class.

Forecast

Dubai remains one of the safest and fastest-growing real estate markets globally.

Prices in waterfront communities are likely to grow 20-30% in the next few years, with prime villa prices likely to rise 10-20%. Branded residences should see a 15–25% increase, while luxury rental yields are stabilizing at 5-7% in prime areas.

Buyer requirements

We're seeing younger, globally mobile buyers entering the market: tech founders, entrepreneurs and wealthy families relocating for lifestyle and tax efficiency. Europeans, GCC nationals and Asian investors remain strong, but the new wave is driven by end users seeking turnkey luxury, privacy and brand-level quality.

Entrepreneurs

Prefer flexible layouts, private offices, high ceilings and proximity to business hubs, as well as prestige and functionality.

Recommend: Jumeirah Bay, Palm Jumeirah, Downtown penthouses.

Young Couples

Value lifestyle, safety, amenities, and modern design.

Recommend: Tilal Al Ghaf, District One, CityWalk, Marina waterfront.

Families

Need space, schools, greenery, stability and comfort.

Recommend: Al Barari, District One, Jumeirah Park, JGE.

High Net Worth investors

Prioritise ROI and yield, exclusivity, and liquidity.

Recommend: Palm Jumeirah, Palm Jebel Ali, branded residences, waterfront off-plan launches.

HNW buyers value speed, flexibility and negotiation power, and cash purchases allow deals to close within days. The majority of prime transactions in Dubai will remain cash over mortgages, reflecting confidence in Dubai as a long-term, stable wealth destination."