Dubai’s property market has undergone a period of adjustment over the past four weeks, as geopolitical tensions across the region have shaped buyer sentiment and transaction volumes, according to Allsopp & Allsopp.
Transaction activity slowed across March, with a shift in buyer behaviour. Following a start to the year marked by urgency and high levels of activity, the market moved into a phase in which buyers adopted a “wait and watch” approach, taking more time to reach decisions.
The slowdown must be viewed in context. March is a quieter period for Dubai’s property market, with Ramadan, Eid and school holidays reducing activity levels. This year, seasonal factors coincided with external uncertainty, producing a more pronounced, though temporary, dip in performance.
Viewings in Dubai drop 71% at peak of regional uncertainty, Allsopp & Allsopp data shows
Data from Allsopp & Allsopp illustrates the short-term volatility. When measured against the eight-week period from January to late February, viewings, listings and applicant numbers tracked below average for much of March. At the start of the month, viewings were down by as much as 71 per cent, while applicant numbers dropped by 64 per cent, reflecting the impact of market uncertainty.
Despite the fall in activity, supply levels remained stable. Listings proved to be the most resilient metric, finishing the month 10 per cent above the early-year baseline. This indicates that sellers did not withdraw from the market and that there was no surge in distress-driven stock – pointing to a balanced environment.
Activity began to recover towards the end of the month. Following the Eid period, viewings increased by 59 per cent week-on-week, while applicant numbers rose by 33 per cent, marking the strongest week of March since the onset of regional tensions. Overall activity remains approximately 46 to 48 per cent below the early-year baseline, though the upward trajectory points to early signs of recovery.
“This is not a market in decline, but one that has paused and adjusted. What we’re seeing is a natural reaction to both seasonal trends and external uncertainty. The key point is that activity is already beginning to recover, and the fundamentals of the Dubai market remain strong” Carl Allsopp, CEO of Allsopp & Allsopp said in a statement.
Current conditions are creating opportunities across the market. Increased listing volumes and a rise in price adjustments have given buyers greater choice and negotiating power, with some transactions agreed at discounts of between 5 per cent and 20 per cent below asking prices.
For sellers, a more competitive landscape means that accurate pricing and positioning are critical to securing transactions. Demand remains present but has become more selective in the short term.
In the rental market, an increase in available stock is expected as some sellers opt to lease their properties rather than sell, adding to overall supply. Mortgage activity has softened, with a reduction in applications and more conservative lending conditions, which may contribute to short-term pricing adjustments.
On the off-plan side, developers are expected to introduce more flexible payment plans to support continued demand in that segment.
While some short-term softness may persist, the outlook remains positive. Dubai’s property market has demonstrated resilience through periods of global and regional uncertainty, consistently rebounding with strength.
The data from Allsopp & Allsopp suggests the current slowdown is a recalibration rather than a structural shift. As conditions stabilise, demand is expected to return, supporting a recovery across the market.
