Nearly 45 per cent of respondents plan to purchase property in the UAE within the next 12 months, according to a survey by Savills Middle East, even as regional geopolitical developments have introduced caution into the real estate market and led to delays in decision-making.
The UAE Residential Investor Sentiment Survey, conducted among investors, end-users, landlords, tenants and prospective residents, found that a further 32 per cent of respondents remain undecided about purchases – pointing to a longer consideration period rather than a decline in interest.
UAE real estate: No distress selling as 60% of owners hold or expand portfolios
The current slowdown is not being driven by distress selling. More than 60 per cent of existing property owners plan to either hold or expand their portfolios over the next six months, with only around 4 per cent considering selling.
“While regional developments have understandably introduced a degree of caution into the market, the data clearly shows that demand remains intact. What we are seeing is a shift in behaviour rather than a drop in interest, buyers are taking more time, becoming more selective and focusing on fundamentals such as location, quality and long-term value. At the same time, the absence of widespread selling pressure reflects continued confidence among existing property owners, many of whom are well-positioned following the strong performance seen in recent years. As a result, the market is moving towards a more balanced and sustainable phase, rather than experiencing any structural correction,” Andrew Cummings, Head of Residential Agency at Savills Middle East said in a statement.
The absence of selling pressure is supporting pricing across several segments, despite a growing gap between buyer expectations and current market values, where sellers are holding firm.
Following a period of growth, the UAE residential market is transitioning into a phase described by Savills as more balanced. Transaction activity remains at levels above historical standards, supported by long-term population growth, capital inflows and a development pipeline. However, momentum has moderated since the conflict began, particularly within the secondary market.
For the off-plan segment, fewer launches have been recorded since March, and Savills notes that a clearer picture will emerge once earlier property registrations are fully reflected in the data.
The survey reveals a preference for ready properties over off-plan among participants. Approximately 60 per cent of respondents indicated a preference for completed assets, compared to around 23 per cent for off-plan properties – a shift that Savills attributes to buyers seeking certainty in delivery, pricing and immediate usability.
The data also points to a buyer base that is maturing and increasingly led by end-users, with demand supported by owner-occupiers and long-term investors rather than speculation.
UAE apartment supply concerns rise as 60% of respondents flag new unit volumes
Pricing sentiment has shifted, with over 80 per cent of respondents expecting prices to either soften or remain stable over the next 12 months. This has contributed to longer transaction timelines, increased negotiation activity and a more selective approach from buyers – particularly in the apartment segment, where supply is perceived to be in greater availability.
Supply remains a concern for respondents, with over 60 per cent believing that a high volume of new units is entering the market. The apartments segment is considered more sensitive to this new supply compared to villas and townhouses.
Regional and geopolitical uncertainty has emerged as the barrier to market entry for the majority of buyers, outweighing considerations such as pricing or financing.
Savills expects the market to continue adjusting in the near term, with softer transaction volumes and deliberate deal-making. Secondary apartments may face greater pressure, while villas and prime residential assets are expected to remain relatively resilient.
Over the medium term, market performance will be shaped by the pace at which confidence returns and how effectively new supply is absorbed. Savills maintains that the UAE’s fundamentals position it for recovery, with long-term demand drivers remaining in place.
