UAE Property Buyers Adopt A More Measured Approach

Jul 07, 2026
News
8

The divide between property buyers and sellers in the UAE is becoming smaller as the market recovers from the impact of the war. As shown by the recent study, expectations of buyers become more reasonable and realistic, while sellers are still managing to keep their listing prices unchanged, making the selling process more favorable for both parties.

The analysis also emphasizes stability in the sales of Dubai properties, which indicates that demand remains strong despite changes in buyer behavior. Overall situation of Dubai real estate is slowly heading towards a balanced market and will not face a sharp decline of real estate prices.

UAEPropertyBuyersAdoptAMoreMeasuredApproach

Buyer Expectations Continue To Adjust

It has been reported by Property Finder that the share of buyers anticipating a fall in property prices went down to 63% in May. This has been the second consecutive month of decline as expectations had exceeded 70% just after the regional conflict.

From the results of Property Finder's consumer sentiment survey conducted in January-February 2022:

36% of the respondents think that the prices will decrease
35% of respondents think that the prices will become higher
29% think that prices will remain unchanged

As the uncertainty has grown among the potential buyers, few of them decide to make their purchases immediately, hoping to see even bigger discounts. The changing outlook is having an impact on property investment in Dubai, where the investors are becoming more inclined to take into account the proper price-value relationship and future possibilities as well. Many people at the moment looking for an apartment for rent are also postponing decisions regarding buying a property until the market is clearer.

Sellers Remain Strong in Price Responses

With buyers becoming increasingly creative with their purchasing strategy, sellers have shown little sign of changing their approach towards pricing.

Property Finder's own index shows that:

Prices of properties advertised for sale in May were down about two percent from their peaks right before the crisis.
In April asking prices were down by one percent.

This little movement in asking prices from sellers has assisted in closing the gap between buyers and sellers without major downwards shifting in the pricing strategy of the owners of properties being sold. The trend is also supported by good long-term demand in the Dubai real estate market of which has remained rather healthy despite signs of softening in prices in some sectors of the market. Demand is stable in luxury properties for sale segment especially in the case of developed communities where the vendor prices the properties reasonably without resorting to unnecessary price slashing.

Price Discovery Creates Market Stability

Cherif Sleiman, Chief Revenue Officer at Property Finder, states that the current stage is called price discovery because buyers and sellers are finding ways to get to the market value that they can agree on. Sleiman adds that if the discrepancy between what buyers believe a house should cost and what sellers expect the price to be is too large, the number of transactions in the market goes down accordingly. When the expectations of buyers and sellers converge, the stability of the market rises, and the number of transactions increases again.

The price discovery process remains vital to the stability of real estate investment Dubai, where investors feel more confident in the long run than in the short run. At the moment, many families are looking for 4 bedroom apartment for rent in Dubai & are delaying their decisions about making any future purchases until they can have clearer pricing information.

Rental Demand Is Recovering

Property Finder reported that the trend in housing demand has been to shift towards rentals instead of losing its presence altogether.

The figures revealed by the report indicate:

The number of new rental deals in the month of May was still 20% lower than pre-conflict period
The figure recorded for March was as high as 32% less than that of pre-conflict period

The report also illustrated that rental transaction has become more active. This is evident from the fact that almost half of rental contracts signed in May represented new move-ins.

According to the figures :

There were 47% of rental activities which accounted for new move-ins in the month of May.
The figure was 41% in March of this year.

The report covers the entire region of UAE but the impact of these established communities is most visible in places such as Dubai Marina, Business Bay, Downtown Dubai, Dubai Hills Estate and Jumeirah Village Circle (JVC) in the context of residential leasing.

The demand is also good when it comes to luxury apartments for rent. There is a lot of interest coming from renters interested in established communities as well as amenities available to them.

Industry Leaders See More Realistic Negotiations

According to Alessia Sheglova, CEO of Dacha Real Estate:

The approach to negotiations is now more careful
The buyers' decisions are now more based on data
Good offers are still in demand
Sellers are telling they will not negotiate on properties where the prices are good

Sam McCone, Managing Partner at McCone Properties, told that the gap between buyers and sellers is narrowing down. He added that initially buyers used to offer prices way lower than the ones offered by sellers, and that many of them were thinking that sellers would eventually lower their prices down.

Investors are considering properties for rent in Dubai in addition to purchasing options when assessing the performance of their portfolios. The changing marketplace opens up more opportunities for real estate brokers in Dubai that facilitates buyers and sellers to come to an agreement according to the reasonable prices.

Balanced Anticipation Improves Outlook

According to the recent research in Property finder, it has become evident that the real estate of United Arab Emirates developing its way to maturity, because of the simultaneous agreement on the prices between both parties involved. The key trends are not related to price corrections, but rather positive decision in negotiations, thanks to stable demand for rental apartments.

As people continue to score long-term value rather than short-term discounts, the increasing interest in the best residential projects in Dubai indicates that quality developments are still crucial for buyers. Similarly, demand for townhouses for rent in Dubai remains consistent as people continue flocking to established communities with luxury villas for rent enabling them to enjoy a good lifestyle while staying stable.

ALSO READ