Geopolitical events have disrupted decision-making in the UAE property market but have not altered its foundations, according to Betterhomes, which says the current slowdown reflects a pause in sentiment rather than a shift in fundamentals.
Betterhomes delivered the assessment during a market update webinar held last week, with the agency’s leadership team – including its chief executive, Head of Off-Plan and Capital Markets, and Head of Leasing – presenting a reading of conditions on the ground.
The message from those at the top of the agency was consistent: regional developments had reshaped behaviour without eroding demand. “The disruption has slowed decision-making, but not derailed the UAE property market,” the team said.
Daily life and business activity in Dubai, they added, remain unaffected, with the market response described as “measured rather than disruptive.”
Transaction volumes eased in March, though Betterhomes attributed the dip to a confluence of factors rather than any deterioration in market direction.
These included geopolitical developments alongside seasonal considerations such as Ramadan, Eid, school holidays and weather-related disruptions.
The agency was clear that these were short-term in nature and did not represent a structural change in the market’s trajectory.
Dubai off-plan drives 70% of transactions as buyers grow more selective
Off-plan transactions continue to account for approximately 70 per cent of total market activity over the past 12 months, underpinning the market at a time when other segments have faced pressure.
Betterhomes said the segment remains aligned with Dubai’s long-term growth agenda, with buyers continuing to favour developments in stronger locations and those offering a higher standard of product.
Across the market, buyer behaviour has shifted. Purchasers are now applying greater scrutiny to value, positioning and long-term potential before committing. Asking prices have adjusted by approximately 13 per cent – a figure Betterhomes described as a correction following a sustained period of growth rather than evidence of distress.
The agency said the correction points to a market moving into a more considered cycle, one in which pricing discipline and professional guidance carry greater weight.
In the leasing market, enquiries fell by around 40 per cent in early March before showing signs of stabilisation. Betterhomes characterised the decline as a short-term pause rather than a sustained contraction in demand.
At the same time, the agency noted a rise in accidental landlords – owners who have placed their properties on the rental market without initially intending to do so – which has added to supply and contributed to a more competitive environment for landlords seeking tenants.
Betterhomes said the current phase places a premium on strategy, realistic pricing and informed decision-making, particularly as the UAE market transitions into what it described as a more selective cycle.
