Move or Wait? Dubai’s February 2026 Property Signal

The Central Bank of the UAE maintained its base rate at 3.65 %, while average home financing rates stabilized between 4.75 % – 5.25 % following a cooling in the 3-month EIBOR to 3.5 %.

Dubai’s residential price index reached 143.81, reflecting a 12.48 % year-on-year increase as the pace of appreciation begins to moderate. January transaction volumes hit a historic monthly high of AED 72.4 billion, indicating robust liquidity and sustained investor appetite for the secondary market.

Rental growth remains firm between 4 % – 6 % year-on-year, though flat month-on-month movement in prime districts suggests a shift toward yield stabilization. Median asking prices have consolidated at AED 1,925 per sq. ft. amidst a project pipeline increasingly focused on wellness-led villa developments.

Overall, the data points to a stability phase in the Dubai property market, as record transaction values meet normalizing price growth and a maturing rental sector.

Key Market Signals

How These Numbers Affect You

1) Is getting a mortgage in Dubai easier or more competitive now? Will my monthly payment drop?

The Central Bank of the UAE maintained its base rate at 3.65 %, while typical home-financing rates currently range between 4.75 % – 5.25 %, following a cooling in the 3-month EIBOR to 3.5 %.

First-Time Buyers: steadier rates and a slight reduction in the EIBOR suggest more predictable monthly outgoings and improved borrowing capacity compared to the previous quarter.

Investors: stabilizing financing costs point to more consistent cash-on-cash returns, making leveraged acquisitions appear more attractive as debt servicing becomes predictable.

2) Are Dubai property prices rising or cooling?

Residential prices reached an index of 143.81, reflecting an annual growth of 12.48 %, though month-on-month data suggests the pace of appreciation is beginning to moderate.