Dubai residents need to work for just five years on average income to buy a 60-square-metre apartment near the city centre, one of the shortest span among 23 major cities surveyed by UBS in its Global Real Estate Bubble Index 2026.
By contrast, buyers in Hong Kong – the least affordable market in the study – need around 15 years of average income to purchase a similar-sized home, while those in London require 11 years. Buyers in Tokyo, Paris and Seoul all need more than a decade.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Dubai also ranks among the cheapest cities on a price-to-rent basis, with UBS estimating that an apartment there would need to be rented out for just 16 years to cover its purchase price – again the shortest period recorded, alongside Miami and São Paulo. Zurich sits at the opposite extreme, where it would take 46 years of rental income to pay off a home, followed by Geneva at 40 years.
Boom halted by regional conflict
Following an over-five-year-long rally, Dubai property prices have softened over the past few months, reflecting the maturity of the local property market. However, despite the regional geopolitical conflict, the local property market has proved resilient.
Real house prices have since fallen back to mid-2025 levels, while real rents now sit below their year-earlier level. Despite some easing since March, UBS said bubble risk “remains elevated.”
However, some industry executives argue that the Dubai property market is still much more affordable than other major cities around the globe, hence ruling out the possibility of a bubble in the local property market.
Annual figures show Dubai’s real home prices rose a modest 0.4 per cent in the year to the second quarter of 2026, while real rents fell 4 per cent over the same period.
Globally, Zurich and Tokyo were the only two cities UBS classified as facing “high” bubble risk, with Miami, Dubai, Seoul, Lisbon and Geneva all in “elevated” territory. London, Paris, New York, San Francisco and São Paulo were rated “low risk”, the report said.
Ownership still cheaper than renting
UBS said existing tenants were likely to take advantage of the pause in price growth, and in some cases price concessions, when purchasing homes.
“Despite elevated mortgage rates, Dubai remains one of the few markets where homeownership remains relatively attractive given the high cost of renting,” the report said.
The Swiss bank noted that Dubai’s “structural advantages”, including its strategic location and standing as an international business hub, “remain firmly intact”, and that an improvement in the geopolitical environment was likely to support a rapid recovery in market sentiment and price expectations.
Source: Khaleej Times