Dubai, UAE — Dubai property prices slipped about 1% in the year to the third quarter, and rents fell 7%, CBRE said in its latest UAE market review. In Abu Dhabi, apartment prices rose 13%.
For an owner in Mumbai or Bengaluru, the currency matters as much as the price. The dirham has gained about 6.8% against the rupee this year. Measured in rupees, a Dubai flat has held its value even as its dirham price eased.
A 7% Rent Fall Hits Harder Than A 1% Price Dip
CBRE said average Dubai property prices stayed broadly stable but ended about 1% below the third quarter of 2025, Arabian Business reported. Average residential rents fell 7%, transactions slowed and developers launched fewer projects.
For landlords, the rent number is the bigger one. A 7% fall in rent with a 1% fall in price means a lower yield on the same home. Values are still well above pre-pandemic levels, CBRE said.
Other data on Dubai property prices points the same way. Cavendish Maxwell put average prices 2.2% lower in September than a year earlier, at AED 1,644 per sq ft. Betterhomes said median apartment rents fell 3.8% between June and September alone.
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Abu Dhabi Apartments Up 13% On 5% More Deals
The capital is moving the other way. Abu Dhabi apartment prices rose 13% from a year earlier and transactions rose about 5%. CBRE credited owner-occupiers and investors buying in new master-planned communities.
Offices did well in both cities. Dubai office rents rose 12% with occupancy near 95%, led by DIFC, Business Bay and Dubai Internet City. Abu Dhabi office rents rose 20% with 96% occupancy. Industrial rents rose 12% in Dubai and 6% in Abu Dhabi.
Hotels were the weak spot. UAE occupancy was down about 24 percentage points so far this year, and revenue per available room fell 30%. Dubai drew almost seven million international overnight visitors in the first eight months.
Matthew Green, head of research at CBRE MENA, said 2026 has been “more challenging” than expected.
In Rupees, Dubai Property Prices Are Up About 6%
Currency changes the picture for Indian owners. A 1% fall in Dubai property prices, combined with the dirham’s 6.8% gain, leaves a flat worth about 5.7% more in rupees, by Invest Dubai Today’s calculation. Rent sent home is roughly flat in rupee terms, down about 0.7%.
The periods do not match exactly. CBRE’s figures compare the third quarter with a year earlier, while the currency move is for this calendar year. The point holds, though. Much of the dirham-price fall has been offset for anyone who converts back into rupees.
For buyers in India, the same effect works in reverse. The dirham’s 6.8% gain this year raises the rupee cost of a Dubai home by the same amount, before any change in Dubai property prices. Remittances still go through the Liberalised Remittance Scheme, capped at USD 250,000 per person a year, with 20% tax collected at source above Rs 10 lakh. Couples can pool two limits.
Gurugram’s 117% Against Dubai’s Flat Year
Indian cities have rewarded owners through price, not rent. Anarock’s benchmarks rose 125% in Noida and 117% in Gurugram between 2019 and mid-2026, and about 90% in Bengaluru and Hyderabad, according to mid-2026 data. Gross rental yields were 4.6% in Bengaluru, 4.3% in Mumbai and Gurugram, and 3.6% in Hyderabad.
Indian demand has also held up better this year. Anarock counted a 3% rise in third-quarter housing sales across the top seven cities, with Mumbai the largest market. But unsold stock rose 12% to about 6.3 lakh homes, so India has a supply problem of its own.
136,100 Homes Due In 2027 Will Test Rents Again
The main risk for Dubai landlords is supply. Cavendish Maxwell expects 136,100 homes to complete in 2027 and 155,700 in 2028. With rents already down 7%, more completions could push yields lower before prices adjust.
The currency cushion is not guaranteed either. If the rupee steadies, Indian owners lose the offset that has protected them this year.
CBRE’s Fourth Quarter And January Rent Renewals
CBRE’s next review will show whether Dubai property prices turn a 1% dip into a deeper fall, or hold steady while rents adjust. Lease renewals in the new year will show how far landlords cut asking rents. In India, the question is whether Gurugram and Noida keep rising while unsold stock grows.
Abu Dhabi Gains, Dubai Pauses, The Rupee Pays The Difference
For investors, Dubai property prices have flattened while rents fall, which cuts yields on new purchases. Abu Dhabi and Dubai offices look stronger for now. End-users renting in Dubai finally have some bargaining power. For Indian owners, the dirham’s rise has hidden most of the decline in rupee terms. New buyers from Mumbai, Bengaluru or Gurugram pay that premium on the way in.
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