Dubai’s property market is showing encouraging signs of recovery, with lead volumes and online search activity climbing, as the emirate’s enduring appeal continues to draw local and international buyers amid ongoing geopolitical tensions in the overall Middle East region.
Two of the emirate’s established real estate firms have shared their assessments of conditions on the ground, pointing to a market that continues to function but is, however, moving with greater caution than in previous months.
According to Ali Siddiqui, Research Manager at Cavendish Maxwell, Dubai’s residential sector recorded approximately 12,700 transactions in March, valued at AED37 billion.
Transaction volumes hold steady as Dubai real estate market enters more considered phase
That represents a small decline from 15,800 transactions in January and 15,600 in February. Compared to March 2025, transaction volumes are down by 10.5 per cent.
However, Siddiqui urged caution in drawing firm conclusions from the March figures, noting that property transactions typically take between 60 and 90 days to be reflected in the data.
“It is too early to attribute these changes directly to the current geopolitical situation, as seasonal factors also play a role,” he said.
“The full picture will become clearer as more data is released. For now, the market appears to be in a wait-and-see mode rather than experiencing a sharp downturn.”
The decline in March transactions has been driven primarily by a drop in ready sales, while off-plan transactions have edged upward by 0.6 per cent.
Betterhomes, one of Dubai’s largest agency networks, reported a more detailed picture of how conditions have shifted. The firm said overall lead volumes for the month remain around 30 to 40 per cent below the same period last year. However, it noted “signs of recovery” in more recent weeks.
“Since early March, new lead volumes have increased by around 20 per cent week on week, while buyer demand rose 38 per cent week on week in the latest period,” Rupert Simmonds, Director of Leasing at Betterhomes said. “Online search activity has also picked up. Taken together, that suggests the market remains active, but people are approaching decisions more carefully than they were in previous months.”
In addition, betterhomes said viewings, renewals, searches and transactions had continued, despite a broader mood of caution. In the leasing segment, the firm recorded more than 1,200 tenant enquiries over an eight-day period.
“The impact has been more visible in sentiment and timing than in any sharp drop-off in market function,” Simmonds said.
“Buyers are still engaging, but they are typically taking longer to commit and are more price-sensitive before booking viewing,” he added.
Echoing the sentiment, Cavendish Maxwell’s Siddiqui said that opportunistic investors remain active, particularly those seeking to benefit from pricing adjustments or motivated sellers, while buyers without an immediate timeline may be stepping back temporarily.
“This is a typical response during periods of uncertainty,” he said.
Rental demand remains one of the most active segments
In terms of which segments are holding up, both firms pointed to the rental market and long-term owner-occupier demand as the most consistent areas of activity.
Betterhomes said rentals remain one of the most consistently active parts of the market in day-to-day terms, particularly in communities where tenants continue to search, renew and relocate.
“Sales demand is also still present, especially among long-term buyers rather than purely short-term speculators. Off-plan remains resilient, but it is a more selective market than before, with investors focusing more carefully on delivery, pricing and developer strength. What we would say is that demand is strongest where the product is well priced, well located and backed by confidence in delivery,” Simmonds said.
Siddiqui, however, said any assessment at this stage would be “premature.”
“It is difficult to draw accurate conclusions about current segment performance because of the time lag in data. It typically takes between 60 and 90 days for a property to register as a sale, i.e. when handover is completed. We will have a clearer picture once data from the coming months is available,” he said.
The areas currently recording the highest search volumes in its leasing data are Dubai Marina, Business Bay, Dubai Silicon Oasis and Jumeirah Village Circle, betterhomes said.
The firm said transactions and enquiries are still occurring across multiple communities but warned that the market is becoming more selective.
“Areas and properties that are not priced correctly are likely to feel that shift more quickly. At this stage, we would be careful about calling a broad slowdown in any one area without a longer trend behind it,” Simmonds explained.
International investors have been a significant driver of Dubai’s property market in recent years, and both firms addressed whether that interest is holding. Their assessments were broadly aligned: international demand has not disappeared, but it has become more differentiated.
Betterhomes said the emirate’s long-term appeal remains intact, underpinned by its stability, global connectivity and strategic vision.
“What has changed is that some international buyers, especially those without prior UAE exposure, are taking a more cautious view in the short term. At the same time, more experienced international investors continue to engage with the market and, in some cases, see current conditions as an opportunity to enter on more favourable pricing or terms,” Simmonds said.
Cavendish Maxwell’s Siddiqui described a similar split. “Some opportunistic investors remain active, seeking to capitalise on any pricing adjustments or motivated sellers,” he said. “Those without immediate timelines may adopt a wait-and-see approach, as is normal for times of uncertainty.”
Government incentives and economic fundamentals underpin market confidence
When asked about the factors that are currently driving demand for real estate in Dubai, Siddiqui said “property demand in Dubai has been driven by a combination of strong economic fundamentals, including GDP growth, population expansion, infrastructure development, regulatory reforms, and the market’s ability to rebound from previous periods of volatility and adapt to changing economic conditions.”
“More recently, this has been supported by government initiatives such as Dubai’s AED1 billion package of economic incentives, alongside the UAE Central Bank’s resilience measures aimed at supporting the banking sector, he added.
Betterhomes further identified confidence in off-plan delivery, steady construction progress across major developers and a regulatory framework that protects both developers and investors as factors continuing to support sentiment.
“At the same time, in leasing and resale, realistic pricing, flexibility and trust in the agent or developer are becoming increasingly important in converting demand into action,” he said.
Looking ahead, betterhomes said the market is moving into what it described as a more considered phase.
“Our view is not that the market is heading for a stop, but that it is moving into a more considered phase. If anything, momentum is likely to continue in a steadier and more disciplined way rather than accelerate sharply in the near term,” according to Simmonds
The firm said the implications for strategy are direct. Sellers and landlords need to be realistic on price and flexible on terms, while buyers and tenants are placing greater value on properties that are well-positioned and fairly priced. “This is not a market that has stopped, but one that is thinking more carefully,” Simmonds added. “That matters, because it changes the strategy.”
Cavendish Maxwell’s Siddiqui said it is still too early to call the direction of market momentum, given that so much depends on how current conditions develop.
“While this situation is unprecedented, Dubai’s real estate market has navigated challenges in the past and showed consistent resilience. The factors that have made Dubai attractive remain largely intact. The recent announcement of economic incentives is proof of the government’s commitment to maintaining stability and confidence. While short-term sentiment and activity may be affected, the structural fundamentals that have supported the market’s growth remain in place,” he concluded.
