The growth in prices of villas in Dubai continues to outpace apartments during 2026

It will enter the real estate market in the Emirate of Dubai in 2026, supported by solid foundations, in light of strong and cohesive macroeconomic performance, continued population growth, and strategic investments in infrastructure. A report issued by Valustrat, a global specialist in providing multi-sector advisory services, a copy of which Emirates Today obtained, stated that the prices of villas and townhouses continue to outperform residential apartments during the current year.

The report suggested that the prices of villas and townhouses will grow by 17.7% in 2026, compared to 7.4% for apartments, driven by limited supply and changing buyers’ preferences towards low-density residential types.

New supply

The “Valuestrat” report estimated the volume of new supply in the market at approximately 131,234 thousand residential units, of which apartments account for 81%, compared to 19% for villas and other units. It confirmed that the strongest demand is still directed towards independent family housing, which represents less than 20% of the total supply, while some villa complexes have seen prices rise threefold since the period of the “Corona” pandemic.

The report expected the residential sector to maintain its upward trajectory during the current year, with capital gains likely to reach about 10%, which reflects the market entering a phase of stability after years of rapid growth.

The report also suggested that rental price growth rates would stabilize during the current year, which reflects prices reaching maximum levels and changing rental market dynamics.

Office market

In addition, the report confirmed that the office market in Dubai will continue to record unprecedented levels of demand, driven by the expansion of companies and the establishment of new businesses.

He said: “Capital values ​​and rental rates are scheduled to rise by 15%, which is a lower percentage compared to 2025 but is still strong, in light of the continued limited supply in prime locations, with Class A offices continuing to outperform as a result of limited supply.”

According to developers’ estimates, it is expected to add 153,122 square meters (1.65 million square feet) of gross leasable area during 2026, bringing the total office stock in Dubai to 9.94 million square meters (107 million square feet).

Business flows

Haider Taima, director and head of the real estate research department at Valustrat, said that population growth remains a major factor in driving demand in the real estate market in Dubai, as the number of residents residing in Dubai is expected to reach 4.7 million people at the end of 2026.

He pointed out that the real estate market in Dubai in 2026 will be shaped by strong economic growth, strategic investments in infrastructure, and the development of the dynamics of various sectors.

Taima expected that villas would remain one of the most in-demand assets during the current year, with expectations of delivering 50,000 residential units out of the total supply.

He also expected the office and hospitality sectors to continue achieving strong performance, supported by global business flows and tourism demand, which reflects Dubai’s resilience and its position as a global center for trade, tourism and investment.

. 131.2 thousand units, the volume of residential supply in 2026, and apartments account for 81% of it.

. 15% expected growth in capital values ​​and rents in the office market.