Property Market Resilience Amid Regional Instability

UAE property buyers are taking more time to make decisions due to regional uncertainty, but the market remains active. A recent survey indicates that nearly 45% of potential buyers still plan to purchase a home within the next year. Importantly, existing property owners are largely holding onto their assets, with over 60% planning to maintain or expand their portfolios. This lack of widespread selling pressure is preventing a market-wide price correction, even as buyers become more selective.

Buyers are prioritizing completed properties, with about 60% preferring ready homes over off-plan units, which account for roughly 23%. This shift reflects a focus on delivery certainty, transparent pricing, and immediate usability. While regional events have introduced caution, demand remains, and buyers are now more focused on location, quality, and long-term value. The market is also seeing a rise in end-user-led purchases, supported by owner-occupiers and long-term investors.

Dubai's residential market continues to show resilience, with a 4% year-on-year increase in transactions and a 21% rise in total transaction value in the first quarter of 2026. Off-plan properties continue to drive activity, while secondary market transactions have slowed, indicating greater price sensitivity in the ready market. Villas and prime properties are holding up well, with increased demand for larger, higher-value homes. The leasing market has become more competitive, with increased supply and more selective tenant behavior.

The market is transitioning into a more balanced phase, with near-term activity expected to be more deliberate. Secondary apartments may face greater pressure, while villas and prime residential assets are expected to remain more resilient. Sellers with realistic pricing, desirable locations, and completed or high-quality assets are likely to fare better as buyers take more time to commit.