Property prices in Dubai are set to rise in 2025 and 2026 due to strong demand especially from European buyers as more people relocate to the UAE for better economic prospects.

Ali Sajwani, managing director of Damac Properties, highlighted that European buyers now make up the largest portion of the market, surpassing Russian and Ukrainian buyers. Factors such as Europe's economic slowdown, higher taxes and changes to UK residency rules are driving this shift.

This influx is boosting demand for mid-to-high-end properties especially in the Dh3 million to Dh8 million range. The UAE government’s initiatives including long-term residency permits are further supporting this growth.

Residential property prices in Dubai rose by nearly 20% year-on-year with apartment prices increasing by 19% and villa prices by 23%. Europeans especially from the UK continue to be the largest group of foreign investors in the market.

It is forecast that property prices will continue rising as Dubai remains more affordable compared to cities like London, New York and Singapore. Despite new supply expected in 2025, the market remains undersupplied, supporting further price increases.