'High-value' Dubai property in demand in shift from luxury market

Dubai's real estate market is shifting from a focus on ultra-luxury properties to a greater emphasis on mid-range, high-quality homes that offer the same level of luxury at more accessible price points, according to industry experts. Developers report a return of investor confidence and a growing interest in properties priced between Dh1 million and Dh2 million, with some transactions falling in this range, according to Tauseef Khan, chairman and founder of Dugasta Properties.

The ultra-luxury segment still attracts buyers, but many are directing their attention towards properties that provide quality, comfort, and luxury at lower costs. Azizi Developments, a major developer in the emirate, noted that sales have fallen by 70% during regional tensions but have since recovered to around 80% of previous levels.

Domestic demand for lower-priced homes remains strong, with many domestic buyers, renters, and homeowners becoming involved in the market. The Dubai Branded Residences Report H1 2026 by Morgan’s International Realty shows a more selective phase for Dubai’s branded residence market, with transaction volume declining 21% year-on-year and sales value decreasing 47% to Dh22.1 billion ($6.02 billion).

The market is maturing, with new buyers taking longer to make decisions and being more selective in their investments. Developers are adapting to more price-conscious buyers by offering flexible payment structures, such as no down payment and a 1.5% monthly installment. The property show, held alongside the AIM Congress, drew over 35,000 attendees from 191 countries, indicating the industry’s momentum and the city’s role as a centre of tolerance and peace.