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84% of global investors back Dubai off-plan property market
Dubai’s average property prices rose 9% during the first half of 2026, while luxury demand remained robust, with the city recording 296 home sales above $10 million worth a combined $5.1b
- PUBLISHED: Sun 26 Jul 2026, 3:15 PM
Dubai’s off-plan property market continues to draw unprecedented levels of international investor interest, with 84 per cent of global investors now rating the emirate as a more attractive destination for off-plan investment than rival global markets, underscoring the growing appeal of the city’s real estate sector amid record transaction activity and continued population growth.
The findings come as Dubai recorded 87,800 real estate transactions worth Dh291.7 billion in the first half of 2026, with off-plan properties accounting for 71 per cent of all deals, highlighting the segment’s dominant role in the market. At the same time, approximately 121,000 new residents moved to the emirate during the first six months of the year, reinforcing housing demand and supporting long-term growth prospects.
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According to a study by Smart Bricks, which surveyed more than 8,500 international off-plan investors from Europe, South Asia, the GCC, Africa, the Americas and East Asia, over half of respondents said Dubai was “significantly” more attractive than other global property markets, while a further 32 per cent viewed it as “somewhat” more attractive. The report says this reflects a shift in the way global capital views Dubai, positioning it alongside established investment destinations such as London and Singapore rather than as a purely speculative market.
Capital appreciation remains the primary attraction for investors. The survey found that 61 per cent cited the potential for capital growth as the main reason for investing in Dubai’s off-plan market, followed by developer payment plans at 54 per cent, the city’s tax environment at 47 per cent, population and economic growth at 42 per cent, and strong rental demand at 36 per cent.
However, the data also suggests that investor enthusiasm is increasingly being matched by market fundamentals. Dubai’s average property prices rose 9 per cent during the first half of 2026, while luxury demand remained robust, with the city recording 296 home sales above $10 million worth a combined $5.1 billion. Transaction volumes in this ultra-prime segment climbed 16 per cent year-on-year, while sales values increased 14 per cent, reflecting continued demand from high-net-worth individuals seeking premium residential assets.
The growth in off-plan activity is also being supported by a substantial development pipeline. Dubai has more than 31,000 branded residence units scheduled for delivery by 2030, representing around 8 per cent of total future housing supply. The emirate already leads the world in branded residences, with 64 completed developments and another 87 projects in the pipeline. Branded properties command an average 64 per cent premium over non-branded homes, according to the analysis.
While investor confidence remains high, data from Smart Bricks suggests that returns are not as straightforward as many buyers assume. The report analysed more than 70,000 off-plan units bought directly from developers and resold before handover between 2009 and 2026. It found that the median flip generated a gross gain of 9.1 per cent after a typical holding period of 19 months. Once transaction costs of about 5 per cent are factored in, net returns fall to roughly 4.1 per cent.
The study also highlighted how timing can significantly affect returns. Off-plan properties sold more than 18 months before handover produced median gains of 5.3 per cent, while properties sold at or after handover achieved median gains of 18.7 per cent. Villas showed a different pattern, with returns peaking at 27.5 per cent in the final three months before completion before dropping sharply after handover.
Location also emerged as a critical factor. Tilal Al Ghaf recorded median gains of 24 per cent, followed by La Mer and City Walk at 22 per cent each, while Dubai Marina and Sobha Hartland delivered median gains of only 5 per cent and 2 per cent, respectively. The report noted that the strongest returns were often generated in master-planned lifestyle communities rather than in the city’s most established residential districts.
Despite signs of cooling in parts of the resale market, industry executives remain optimistic about Dubai’s long-term outlook. Mohamed Mohamed, Co-Founder and CEO of Smart Bricks, said: “Global confidence in Dubai has never been higher, and much of it is well founded - but enthusiasm is not a strategy.” He added that “the returns that make the strategy worthwhile are concentrated among investors who choose the right segment, buy in the right community, and above all sell at the right moment.”
Michael Belton, CEO of MERED, said: “Off-plan property buyers commit before they can experience the finished product, so confidence must be earned through architectural quality, functionality and delivery credibility.” He added that these qualities would define “the next generation of luxury residences and reinforce Dubai’s position as one of the world’s most desirable places to live and invest”.
The combination of strong investor sentiment, record transaction volumes, growing population inflows and an expanding development pipeline suggests that Dubai’s off-plan market remains one of the world’s most active real estate segments. Yet the research also indicates that as the market matures, investors are becoming more selective, with successful returns increasingly dependent on asset choice, location and timing rather than broad market momentum alone.
Associate Editor Somshankar Bandyopadhyay brings more than three decades of experience to the KT newsroom. Currently, he manages the news production of the business section, ensuring that the top economic and business news of the day reaches its readers.