Dubai’s real estate market has entered a new phase in 2026. After several years of rapid price growth, many expected investors to start selling their properties and secure their profits. Instead, the opposite is happening. Most landlords are holding onto their assets, confident that Dubai’s property market still has room to grow.
A recent survey by proptech company Smart Bricks found that 85% of Dubai landlords are not considering selling their properties under current market conditions. The survey, which included more than 600 landlords, highlights a major shift in investor behaviour. Rather than looking for a quick exit, most owners now see Dubai real estate as a long-term investment that can continue generating rental income and capital appreciation.
At the same time, buyers are facing two very different markets. The off-plan sector continues to attract thousands of investors every month, while the supply of quality ready homes remains limited because existing owners are choosing to keep their properties.
Why Are So Many Owners Refusing to Sell?
Several years ago, many investors entered Dubai’s property market hoping to resell their units after prices increased. Today, that strategy is becoming less common.
The biggest reason is confidence.
Dubai continues to attract entrepreneurs, skilled professionals and international companies. Population growth remains strong, tourism continues to break records, and major infrastructure projects—including the expansion of Al Maktoum International Airport and the development of Dubai South—are expected to support housing demand for many years.
For many investors, selling now simply doesn’t make financial sense.
Rental Income Remains Highly Attractive
Dubai continues to offer rental yields that are significantly higher than many established property markets around the world.
In popular investment areas, apartments can still generate average gross rental yields between 6% and 8%, while some emerging communities offer even higher returns depending on property type and purchase price.
For many landlords, receiving steady rental income every month is more valuable than making a one-time profit from selling the property.
A Tax-Friendly Investment Environment
Another important advantage is Dubai’s tax system.
There is no annual property tax, no capital gains tax on residential property sales, and no personal income tax on rental income for individuals. This makes long-term ownership much more attractive compared with many European or North American markets.
As a result, investors can focus on growing their wealth instead of paying recurring taxes on their real estate investments.
Off-Plan Properties Continue to Dominate New Sales
Although ready homes remain in demand, off-plan properties continue to lead Dubai’s residential market.
Flexible payment plans, lower entry prices and strong capital growth potential make newly launched developments attractive for both first-time buyers and experienced investors.
Many developers now offer payment plans extending several years beyond handover, allowing buyers to spread their investment over a longer period while securing today’s purchase price.
For buyers who are not in a hurry to move in, off-plan properties can provide an excellent opportunity to benefit from price appreciation before construction is completed.
Why Buyers Still Choose Ready Homes
Despite the popularity of off-plan projects, ready properties remain the preferred choice for many buyers.
The biggest advantage is certainty.
You can inspect the exact property before purchasing, evaluate the quality of construction, explore the surrounding neighbourhood and start generating rental income immediately after completing the transaction.
Ready homes are particularly attractive for investors looking for immediate cash flow instead of waiting several years for construction to finish.
However, finding the right property has become more challenging.
Because many owners are choosing not to sell, buyers often face limited inventory in established communities such as Dubai Marina, Downtown Dubai, Dubai Hills Estate and Arabian Ranches.
Well-priced properties in these areas rarely stay on the market for long.
Which Option Is Better for Investors?
There is no universal answer.
The right choice depends on your investment goals.
Off-Plan May Be Better If You:
- want to enter the market with a lower initial investment;
- are comfortable waiting two to four years before receiving the property;
- expect long-term capital appreciation;
- prefer flexible payment plans.
Ready Property May Be Better If You:
- want immediate rental income;
- plan to move into the property soon;
- prefer seeing exactly what you are buying;
- want lower construction and delivery risks.
Many experienced investors now combine both strategies. They own one or more ready properties that generate rental income while simultaneously investing in carefully selected off-plan projects for future capital growth.
What Does This Mean for Buyers in the Second Half of 2026?
Current market indicators suggest that Dubai’s property market is becoming more stable and more mature.
Instead of speculative buying and rapid resales, investors are increasingly focusing on long-term ownership.
As long as rental demand remains strong and Dubai continues attracting new residents, businesses and international investors, many landlords are expected to continue holding their properties rather than selling them.
For buyers, this creates a two-speed market.
Ready homes may become harder to find in the most popular communities, while the off-plan market continues to offer a wide selection of new developments with attractive payment plans.
Rather than asking whether off-plan or ready properties are “better,” buyers should consider which option best matches their financial goals, investment timeline and risk tolerance.
Réflexions finales
Dubai’s real estate market is no longer driven by short-term speculation alone. Investors are becoming more selective and increasingly focused on long-term returns.
The fact that 85% of surveyed landlords are choosing to keep their properties reflects growing confidence in Dubai’s future rather than hesitation about the market.
Whether you choose an off-plan development or a ready home, success depends on selecting the right property in the right location and having a strategy that matches your investment objectives.
Lilia Ibragimova, Founder of Alira Real Estate
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