UAE Real Estate Report - H1 2026 Review and H2 2026 Outlook

Executive Summary

UAE’s real estate sector navigated a pivotal H1 2026, as the onset of the U.S.-Iran conflict in February tested the market’s safe-haven appeal even as underlying fundamentals stayed largely intact. Office and industrial & logistics segments continued to see robust demand, supported by tight supply of quality space, while Dubai’s residential market cooled sharply post-conflict and hospitality bore the brunt of a steep decline in foreign tourist arrivals.

Based on assessment of key macro factors that would impact the UAE property market, the real estate market is expected to transition to a more measured, stable phase in the second half of 2026. The Markaz Real Estate Macro Index score of 3.4 out of 5.0 reflects a moderate-to-neutral tone, with GDP recovery, sustained investment and job creation providing support, even as regional tensions and construction cost pressures remain key watchpoints.