Dubai's population exceeds 4 million: how demographic growth affects the real estate market
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February 23, 2026
February 23, 2026
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Dubai has officially crossed the 4 million population mark, which has become an important factor for the real estate market. Population growth directly increases the demand for renting and buying housing, supporting a record volume of transactions of about 900 billion dirhams per year.

Why population growth is important for investors

An increase in the number of inhabitants means:

  • growth in rental demand;
  • increasing the number of customers in the off-plan segment;
  • price stability in popular areas;
  • increasing interest in master-planned communities.

Demand is especially noticeable in areas near business centers and in premium waterfront clusters.

Record deal volumes

In 2025:

  • real estate sales exceeded 680 billion dirhams;
  • the total number of transactions exceeded 200,000;
  • the total volume of operations reached about 919 billion dirhams;
  • the premium segment (over 10 million dirhams) showed about 6,000 deals.

This is confirmed by a wide demand base — from the middle segment to ultra-high-net-worth customers.

Mortgages are becoming more affordable

Lower interest rates increase buying activity, especially among end users. More affordable financing also increases the market's investment attractiveness against the background of high rental yields in Dubai.

What's next

The next stage of market development will depend on:

  • the balanced conclusion of the new proposal;
  • infrastructure readiness of districts;
  • project quality;
  • long-term city development strategy until 2040.

Conclusion

The population growth to 4 million is not just statistics, but a fundamental driver of Dubai's real estate market. This, combined with active investment activities and improved financing conditions, forms a stable basis for further growth in 2026 and beyond.

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