Dubai property prices Q3 2026 fell by roughly 1 per cent year-on-year, while average rents dropped 7 per cent, according to CBRE Middle East’s UAE Real Estate Market Review. Abu Dhabi moved the other way, with apartment prices up 13 per cent over the same period.
The report, covering the third quarter of 2026, points to a cooling residential market in Dubai after several years of rapid price growth, even as the capital’s housing sector keeps expanding and office rents climb across both emirates.
Key facts
- Dubai residential sales prices fell about 1 per cent year-on-year in Q3 2026; average rents dropped 7 per cent.
- Abu Dhabi apartment prices rose 13 per cent year-on-year; residential transaction volumes rose about 5 per cent versus Q3 2025.
- Dubai office rents rose 12 per cent year-on-year with occupancy near 95 per cent; DIFC, Business Bay and Dubai Internet City led leasing activity.
- Abu Dhabi office rents rose 20 per cent year-on-year, with occupancy at 96 per cent, supported by financial institutions and Abu Dhabi Global Market’s expansion.
- Dubai drew almost seven million international overnight visitors in the first eight months of 2026; retail occupancy hit 97 per cent in Dubai and 96 per cent in Abu Dhabi.
Dubai property prices Q3 2026 show a more balanced market
CBRE said Dubai’s residential market entered a “more balanced phase” in the third quarter, with sales prices down around 1 per cent year-on-year and rents down 7 per cent. Transaction activity also moderated, as buyers took a more measured approach to purchases, according to the report.
Developers responded by slowing the pace of new project launches amid the shifting conditions, CBRE said. Even so, the firm noted that residential values remain well above pre-pandemic levels after years of sharp growth.
Abu Dhabi residential and office markets keep rising
Abu Dhabi told a different story. Apartment prices rose 13 per cent year-on-year, and residential transaction volumes increased by about 5 per cent compared with the third quarter of 2025. CBRE attributed the demand to owner-occupiers and investors targeting new master-planned communities and emerging residential areas.
Office space was the standout performer nationally. Abu Dhabi office rents rose 20 per cent year-on-year with occupancy at 96 per cent, driven by financial institutions, multinational companies and the continued growth of Abu Dhabi Global Market. In Dubai, office rents rose 12 per cent with occupancy around 95 per cent, with DIFC, Business Bay and Dubai Internet City recording the strongest leasing activity from financial services, professional services and technology firms.
The hospitality sector remained under pressure from regional geopolitical uncertainty, though CBRE reported improving conditions in the third quarter as air connectivity and visitor numbers recovered. Hotel occupancy across the UAE was down about 24 percentage points year-to-date, an improvement on the 28-percentage-point decline recorded in the first half of the year. Average daily room rates fell 8 per cent and revenue per available room dropped 30 per cent compared with the previous year, even as Dubai welcomed almost seven million international overnight visitors in the first eight months of 2026. Retail occupancy stayed strong, reaching 97 per cent in Dubai and 96 per cent in Abu Dhabi, according to Arabian Business.
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