Prices are expected to adjust in the Dubai housing market in the second half of 2025 and in 2026, according to a report published last week by the Fitch rating agency. This is a trend reversal after several years of the post-pandemic boom.
The entry into the market of a large number of new apartments and houses (210,000 units, which is twice as many as in the previous three years) is likely to lead to a significant increase in supply, and, as a result, lower prices.
From 2022 to the 1st quarter of this year, real estate in Dubai has risen in price by about 60%. This was due to large-scale investments in infrastructure, generous tax policies, and easing of visa regulations. Thousands of foreigners, including Russians, came to the emirate.Real estate plays an important role in Dubai's economy. According to government data, in 2024, the volume of transactions in this sector amounted to 761 billion dirhams ($207.22 billion), an increase of 36%.
Source: Reuters
