House Prices in Dubai 2026: Latest Trends, Average Costs & Area-Wise Insights

House Prices in Dubai : Complete Market Guide 2026

Property prices in Dubai have experienced remarkable growth over the last year, showing the confidence of investors in the market. Dubai’s Residential Property Price Index, as of December 2025, stands at 240.4, recording an increase of 19.8% in the year-on-year comparison.

The demand is being driven by both the general public as well as the investors in the market, with villas performing better than apartments in terms of appreciation of value.

Dubai Property Market Overview (2025–2026)

The realty sector in Dubai continued to perform well in the early part of 2026, thanks to the following reasons

High investor demand

Population growth and expat inflows

Attractive payment terms in off-plan developments

Worth noting is the fact that off-plan properties comprised nearly 76% of all sales.

Key Market Highlights:

Villa prices went up by as much as 28% in medium-class communities  

Resorts

Prices increased by between 9% and 29% in affordable areas.

Approx. 210,000 new homes will emerge in the market by 2026, which could result in somewhat decelerating prices in certain segments.

Average House Prices in Dubai (Citywide)

The weighted average residential sale price in Dubai stood at AED 3.69 million by late 2025. Prices vary widely depending on location, property type, and whether the unit is off-plan or ready.

Average Prices by Property Type:

Property Type	Average Price (AED)	Price per sq ft (AED)
Villas	AED 14.38 million	AED 3,048
Apartments	AED 1.97 million	AED 1,477

Villas continue to attract premium buyers due to larger layouts, private amenities, and family-oriented communities.

Neighborhood-Wise House Prices in Dubai

Property prices differ significantly by location, with waterfront and central districts commanding the highest premiums.

Dubai Area Price Comparison

Area	Villa Average Price	Apartment Price	Notes
Palm Jumeirah	AED 20M+	High	Ultra-luxury beachfront living
Dubai Hills Estate	AED 8.3M (3-bed)	—	Strong capital appreciation
Arabian Ranches	AED 6M+	—	Family-focused villa community
DAMAC Hills 2	AED 1.2M – 6.5M	Affordable	Budget-friendly villas
Jumeirah Village Circle (JVC)	—	Up 11% YoY	Popular mid-market area
Dubai South	Affordable	Up 25% YoY	Emerging investment hotspot

Villa vs Apartment Prices in Dubai

• Villas: Strong demand from families and long-term residents has pushed villa prices higher, especially in gated communities.

• Apartments: Apartments remain attractive for investors seeking rental income, particularly in areas with metro connectivity.

Premium locations like Downtown Dubai and Palm Jumeirah exceed AED 1,400 per sq ft, while emerging zones such as Dubai South offer prices near AED 1,100 per sq ft or less.

Trends & Future Outlook (2026)

Looking ahead, Dubai’s housing market is expected to remain resilient, though some stabilization may occur.

Market Forecast:

• Potential 5–10% price correction in select mid-market segments by mid-2026

• Continued dominance of off-plan sales

• Strong rental yields of 9–10% in affordable areas like International City

• Luxury and waterfront properties likely to retain long-term value

For the most accurate and updated data, buyers and investors should consult the Dubai Land Department (DLD) and official property indices.

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Final Thoughts

House prices in Dubai continue to reflect the city’s global appeal, economic stability, and investor-friendly policies. Whether you’re a first-time buyer, end-user, or property investor, understanding area-wise pricing and market trends is essential before making a decision.

Dubai remains one of the most dynamic real estate markets in the world, offering opportunities across luxury, mid-range, and affordable housing segments.