Dubai: the property market sets new records in 2026

We do not publish transaction volumes, a price index or the share of European buyers: the Dubai Land Department publishes statistics, but we have not been able to verify their current values directly. We do not repeat the figures circulated by agencies and developers, which are not official sources.

What can be said without figures concerns the structure of the market. Supply in Dubai is largely new-build, sold off-plan by a small number of developers backed by public or semi-public groups, with staggered payment plans.

Demand, for its part, is mostly foreign and highly sensitive to external events: it has been fuelled successively by flows from Asia, Europe and then Russia. This composition explains the scale of the cycles observed over the past twenty years.

The market went through a severe correction after 2008, then a second downturn midway through the following decade. A buyer who looks only at the recent upswing is ignoring a short but volatile history.

Purchasing a property worth at least from AED 2,000,000¹, or about about €520,000², gives access to a 10 years³ residence permit.

This link has a market effect that is rarely analysed: part of the supply is pitched just above the threshold, and part of the demand buys for the permit rather than for the yield. Price formation at this level is affected as a result.

It also affects sellers. Selling the property has consequences for keeping the permit, which reduces the effective liquidity of the segment concerned: a resident owner hesitates to sell even when the market would be favourable.

Freehold ownership is, moreover, open to foreigners only in designated areas. Outside these areas, the purchase takes other forms, which do not confer the same right.

1. Confirm that the property is located in an area open to foreign freehold ownership.
2. Cost the service charges and registration fees, which are left out of the gross yields advertised.
3. For an off-plan purchase, examine the completion guarantees and the developer's financial strength.
4. Assess how exposed the payment plan is to a change in your professional situation.
5. Do not confuse the residence permit obtained with tax residency, which requires a presence of from 183 days⁴ and a separate certificate.

The fourth point is the one that gets expatriates into difficulty. An off-plan purchase is a commitment over several years, and a contract ending during construction leaves the buyer with instalments to pay in a country where their right of residence depended on that purchase.

The tax framework for holding property has changed. Individuals are not taxed on their income — 0%⁵ — but holding through a company now falls under corporate tax, at a rate of 9%⁶ above AED 375,000⁷.

The choice of holding structure is therefore no longer neutral, whereas it still was until recently. This is a point to settle before the purchase, not after.

For a French resident who has not moved their domicile, it should be remembered that Emirati rental income must still be declared in France, with the tax treaty determining how double taxation is eliminated. The absence of local tax does not mean the absence of French obligations.

The practical conclusion is that a purchase in Dubai should be judged like any foreign property investment: yield net of charges, real liquidity, no currency risk for a dollar budget, and high market risk. The residence permit is an accessory, not a return.