Dubai's Q2 2026 property market: What international investors should know

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Reading Time: 2 min read
Published: August 11, 2026
Category: Property Investment
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Dubai remains one of the world's most closely watched real estate markets, and its Q2 2026 performance offers a clear read on how it's absorbing a more cautious quarter.

Industrial and retail sectors continued to post strong annual growth, even as office and residential activity moved to a steadier pace after an exceptional run. Short-term regional uncertainty prompted more selective buyer and occupier decisions, but the fundamentals, tourism, population growth and constrained supply, remain intact.

Whether you're building a portfolio, relocating, or simply tracking global opportunities, our Q2 2026 Dubai Real Estate Market Report unpacks the key trends shaping each sector, helping you stay informed and ready for what's next.

Latest insights and market highlights

  • Industrial rents rose 23.3% year-on-year across key communities (approximately USD 18 per sq ft), driven by a persistent shortage of Grade A warehouse space.
  • Retail rents held firm at approximately AED 273 per sq ft (around USD 74), up 18.3% annually, with prime malls at near-full occupancy.
  • Office leasing volumes rose 6.5% quarter-on-quarter, even as average rents eased slightly to AED 205 per sq ft (roughly USD 56).
  • Villa values reached AED 2,339 per sq ft (around USD 637), up 7.7% year-on-year, continuing to outperform apartments.
  • Over 5.4 million sq ft of new Grade A warehouse space is due for delivery over the next two years.

Download the report to see what it means for your portfolio.

John Stevens

About the Author

John Stevens is Chief Executive Officer of Chestertons MENA, leading the firm’s next phase of growth across the UAE and Saudi Arabia. He brings more than 30 years of international real estate experience across the Middle East and Asia, including many years in the GCC, and is known for combining an entrepreneurial approach with disciplined financial oversight to develop high-performing real estate businesses and property portfolios. Based at the regional headquarters in Dubai Marina, he leads a team of more than 90 specialists serving developers, investors, landlords and occupiers across residential and commercial brokerage, valuation and advisory, building consultancy, property management and market research. Chestertons has operated in the UAE since 2008.

Comments

frequently asked questions

The article (Grayce Tan, 11 August 2026) reports industrial rents up 23.3% year on year to about USD 18 per sq ft, and retail rents about AED 273 per sq ft (around USD 74), up 18.3% annually.

Office leasing volumes rose 6.5% quarter on quarter with average rents easing slightly to AED 205 per sq ft (about USD 56). Villa values were AED 2,339 per sq ft (around USD 637), up 7.7% year on year, outperforming apartments.

Over 5.4 million sq ft of new Grade A warehouse space is due over the next two years.

The article cites tourism, population growth and constrained supply, with short-term regional uncertainty making buyers and occupiers more selective. The full Q2 2026 report is at reports.chestertonsmena.com.

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