UAE Real Estate's Rising Demand 2026

Real Estate Buying Frenzy in UAE: Why Many Plan to Purchase Homes by 2026?

The United Arab Emirates' real estate market is back in the spotlight: a recent survey reveals that seven out of ten residents plan to purchase property in the next six months. The respondents are becoming less uncertain about price trends, with many choosing to proceed with purchases rather than delaying their decisions. Several factors are driving this phenomenon, ranging from rising rental costs and lifestyle changes to more favorable mortgage options.

Increasing Intent to Buy Among Residents

The latest study by Property Finder, conducted in November and December with over 5,500 respondents, shows that the willingness to purchase remains high. Although a significant portion of respondents are still price-sensitive, more are inclined to act now rather than wait.

In November, 40 percent of respondents expected prices to decrease, but by December, this had slightly decreased to 39 percent. The proportion anticipating stable prices increased from 28 to 29 percent, while those expecting price rises remained unchanged at 32 percent. Although these numbers do not indicate dramatic shifts, they demonstrate a more balanced perception of the market, reducing fears of excessive price fluctuation.

Wave of Young Professionals Buying

The data indicates a particular increase in interest among young professionals aged 25 to 35 in owning property. One reason is that rising rental costs often meet or exceed mortgage payment installments. Another key factor is the increased predictability of long-term residence options, such as the Golden Visa, which enhances a sense of security and encourages long-term planning.

Younger buyers often view home purchasing not just as a financial decision but as a lifestyle choice. Owning a home provides more freedom and control, especially for those settling in the UAE long-term.

Upfront Costs Remain Challenging

Even though the lending environment has become more favorable in recent years—with lower interest rates and longer loan terms—property purchase still requires significant upfront capital. Analysts warn that many buyers tend to underestimate preliminary costs, which can amount to 25–30 percent of the purchase price. This includes down payments, legal and notary fees, and administrative costs that cannot be covered by loans.

More Flexible Payment Options from Developers

In response to market needs, more real estate developers are offering alternative payment structures. These include lower booking fees, post-transfer payment installments, and rent-to-own solutions. These options are particularly attractive to those currently renting but wish to transition to ownership without having to produce a substantial amount upfront.

Digital Pre-qualification for Mortgages: A New Transparency Opportunity

Banks have also responded to buyers' needs. For instance, Mashreq Bank has launched an entirely digital mortgage pre-qualification system. Residents earning a monthly income of 15,000 dirhams can now check their eligible loan amount online, considering existing obligations and credit history. This system not only saves time but also helps plan a realistic budget before purchasing.

Although final mortgage approval still depends on the valuation of the selected property and other documentation checks, rapid preliminary feedback significantly eases buyers' decision-making.

Buy Now or Wait?

The key message in the current market situation is that buyers are willing to take action—even if they're uncertain about future prices. This suggests that the decision to purchase is driven by genuine demand and long-term thinking, rather than purely speculative motives.

Those considering property purchase in the UAE—especially in Dubai or Abu Dhabi—should thoroughly contemplate if waiting is truly worthwhile. The current environment favors those who plan ahead: loans are more accessible, developers are increasingly flexible, and digital solutions accelerate the processes.

Summary

The UAE's real estate market is vibrant and in a growth phase in early 2026. Data and trends indicate that the willingness to buy is not declining but stabilizing, and even growing in some segments. Younger generations, long-term residency possibilities, and more flexible financial structures all contribute to more people seeing property ownership as an achievable goal. However, it remains crucial for buyers to prepare consciously for purchase and carefully consider costs before making a decision.

(The article is based on a survey by Property Finder.)