Thursday, 1 October 2026
Gulf equity markets came under pressure in September 2026, but real estate moved against the broader trend, supported particularly by listed property companies in Dubai and Abu Dhabi. The MSCI GCC index fell 3.5% during the month, its steepest monthly decline since November 2025, while the regional real estate index was the only sector to record an increase, rising 0.6%.
Performance varied considerably across the region. Saudi Arabia’s TASI lost 6.2% and Qatar fell 5.7%, while the UAE exchanges remained positive. Dubai’s DFM General Index increased 2.1% and Abu Dhabi’s benchmark gained 0.6%. September was marked by higher interest rates, elevated oil prices and continuing geopolitical disruption, all of which contributed to more cautious investor sentiment across regional financial markets.
Dubai’s listed property companies were among the month’s stronger performers. The DFM real estate sector advanced 5.7%, with all seven companies included in the index ending the month higher. The wider Dubai market also saw increased trading, with the value of shares changing hands rising 17.8% from August to AED14.4 billion.
Abu Dhabi showed a similar pattern, with its real estate sector gaining 6.3% during September. The performance came against the background of strong activity in the underlying property market. Abu Dhabi recorded AED117 billion of property transactions during the first half of 2026, while residential sales reached AED70.4 billion. Non-resident foreign direct investment in real estate increased to AED13.8 billion.
The emirate has also expanded financing options for properties still under construction. A new framework allows qualifying purchasers who have already paid half of an off-plan property’s value to obtain mortgage financing during the construction period rather than waiting until completion. The measure could increase financing flexibility in a market where new-build residential sales have become an important source of transaction activity.
Dubai’s physical residential market is showing signs of entering a more moderate phase despite the strength of listed property companies. Average residential sales prices were reported at AED1,636 per sq ft in August, 1.7% below the level a year earlier and down 1.3% over three months. Residential transactions nevertheless remained substantial at AED23.4 billion during August, taking sales during the first eight months of 2026 to almost AED270 billion.
Elsewhere in the GCC, property equities were less resilient. Qatar’s real estate index declined 7.8% in September, with all of its constituent companies losing ground. Saudi Arabia’s real estate management and development sector also fell as the wider TASI dropped to 10,440.6 points and monthly trading value contracted by 30.2% to SAR78.2 billion.
The September figures underline an increasingly uneven Gulf property cycle. UAE real estate equities remained comparatively strong even as regional markets weakened, supported by high transaction volumes and capital inflows into the underlying property markets. At the same time, Dubai’s first signs of residential price moderation and weaker property equities elsewhere in the Gulf indicate that investors are becoming more selective between individual GCC markets rather than treating regional real estate as a single investment story.
