Dubai’s luxury property market is poised for significant growth, with a projected 3% increase in prime property prices by 2026, according to Knight Frank. This surge is fueled by the influx of millionaires into the city, driving demand for high-end and ultra-luxury homes in the post-pandemic era. The global consultancy firm also forecasts that 331,000 new homes will be completed over the next five years, assuming 70% of registered projects are delivered on time. Faisal Durrani, Partner and Head of Research for Mena at Knight Frank, emphasized that the market’s strength is underpinned by record-high sales volumes, robust price appreciation, and resilient rental performance. Despite potential oversupply risks, the structural drivers of demand—population growth, wealth migration, and economic diversification—remain intact. Developers are increasingly aligning supply with affordability and lifestyle needs, ensuring Dubai’s continued global appeal. However, challenges persist, with only 46% of promised housing completed on time in 2025, highlighting a potential contractor capacity crunch. Knight Frank’s best-case scenario anticipates 66,000 homes annually between 2026 and 2030, well above the long-term completion rate of 36,000 per annum. This growth trajectory underscores Dubai’s position as a global hub for luxury real estate, driven by fundamentals rather than speculation.
Dubai’s prime property market to grow 3% in 2026; 331,000 new homes in 5 years
