Short answer: it can be, for buyers with a multi-year horizon who buy carefully. Demand is at record levels: Dubai recorded more than 270,000 property transactions worth AED 917 billion in 2025, and its population passed 4.8 million in September 2026. Against that, a large wave of new homes is being handed over, and Fitch Ratings has said prices could correct by up to 15%. Location, price paid and payment plan matter more than the market average.
Updated 18 Oct 2026. Reviewed by the Vidabricks advisory team. The Vidabricks view is labelled; everything else is sourced. Not financial advice.
The case for and against
| For | Against |
|---|---|
| Record activity: 270,000+ transactions worth AED 917 billion in 2025, up 20% on 2024 (Dubai Media Office) | Supply wave: Fitch expected about 90,000 handovers in 2025 and about 120,000 in 2026 |
| Population: 4,807,185 in late September 2026, up 226,885 since January (Dubai Data and Statistics Establishment, via Gulf News) | Possible correction: Fitch said a correction “should not exceed 15%” in late 2025 or 2026 |
| Buyer base: about 193,100 investors in 2025, including 129,600 new investors (Dubai Media Office) | Off-plan risk: delays, and paying today’s price for a home delivered in 2–4 years |
| No annual property tax and no UAE personal income tax on rent or gains | Running costs: service charges, and agent fees when you sell |
| Escrow law protects off-plan payments (Law No. 8 of 2007) | Concentration: some areas have many projects completing at the same time |
Supply in our catalogue
The Vidabricks catalogue lists 618 off-plan projects on 18 Oct 2026. 249 are scheduled to complete in 2027 and 185 in 2028, so new supply stays high through 2028. Areas with many simultaneous completions, such as Dubai South (29 of 38 projects in 2027–2028), face more rental competition at handover.
The Vidabricks view
- Buy the price, not the market: compare a project’s entry price with its area median. See prices by bedroom and area.
- Prefer handover-weighted plans in areas with heavy supply, so less of your money is committed before completion.
- Plan to hold for 4–6 years rather than flip, especially in growth areas.
- Check the developer and escrow before paying anything.
Frequently asked questions
Is it a good time to buy property in Dubai?
Demand indicators are strong (record transactions in 2025 and population growth of about 227,000 in the first nine months of 2026), but a large delivery pipeline means prices may soften in some areas. Buying well-priced units with handover-weighted plans and holding for several years reduces the risk.
Will Dubai property prices fall?
No one can say for certain. In May 2025 Fitch Ratings said it expected a correction of no more than 15% in the second half of 2025 or 2026 as handovers peak. Areas with the most new supply are the most exposed.
Does Dubai tax property investors?
There is no annual property tax and no UAE personal income tax on rent or sale gains for individuals. Buyers pay a one-off 4% DLD fee and annual service charges; your home country may tax the income.
Sources
- Dubai Media Office: 2025 real estate transactions exceed AED 917 billion (12 Jan 2026)
- Gulf News: Dubai population rises by 226,885 since start of 2026 (Dubai Data and Statistics Establishment figures)
- Khaleej Times: Fitch says Dubai prices could drop up to 15% (29 May 2025)
- Dubai property investment risks
