Dubai Rental Yields Remain Among the World’s Highest as GCC Property Momentum Continues in 2026
Real estate markets across the GCC are maintaining strong momentum into 2026, supported by steady economic growth, rising populations, and improved liquidity. At the center of this growth story is Dubai, a market that continues to attract global investors with some of the highest rental yields among major international cities.
According to outlook data from Kuwait Financial Centre Markaz, GCC property markets are entering 2026 from a position of strength following a robust performance in 2025. Continued non-oil economic expansion, infrastructure spending, and supportive policy conditions are driving investment across residential and commercial sectors.
UAE Leads Regional Performance
The UAE remains the region’s standout performer. In 2025:
- Dubai recorded approximately Dh554.1 billion in real estate transactions, marking a 28.3% year-on-year increase.
- Abu Dhabi posted Dh58 billion in property sales, up 75.8%.
Strong demand from global investors, high-net-worth individuals, and skilled professionals continues to support transaction volumes and price growth.
Dubai’s Global Yield Advantage
Dubai’s rental market remains a major draw for investors. Average residential rental yields in 2026 range between 6% and 8%, with certain high-demand areas delivering even stronger returns.
High-performing districts include:
- Jumeirah Village Circle
- Business Bay
- Dubai South
Established areas such as Dubai Marina continue to offer stable and competitive returns.
Compared to cities like London, New York, and Singapore where average residential yields typically range between 3% and 5%. Dubai stands out as a higher-income market for property investors.
Global consultancy Knight Frank notes that Dubai remains one of the most liquid and transparent real estate markets globally, supported by strong end-user demand and sustained international capital inflows. Similarly, CBRE expects steady growth in the UAE property market, driven by population expansion and economic activity.
Population Growth Sustaining Demand
Dubai’s population is projected to exceed 4 million in the coming years, fueled by professionals and entrepreneurs relocating for economic opportunities and long-term residency incentives. Rising property prices and mortgage qualification requirements are also keeping many residents in the rental market, supporting occupancy levels and rental stability.
While rental growth is expected to moderate slightly in 2026, underlying fundamentals remain solid. Analysts suggest the market may approach a cyclical peak, but a sharp correction appears unlikely due to strong structural drivers.
Wider GCC Outlook
Beyond the UAE, real estate remains central to diversification strategies across the region. In Saudi Arabia, Vision 2030 initiatives continue to drive sector expansion, while Kuwait maintains steady growth supported by demographics and infrastructure spending.
As 2026 unfolds, property markets across the GCC are expected to remain key contributors to economic growth offering investors stable income opportunities and long-term value potential.