UAE Property Market Remains Stable Amid Regional Tensions

May 11, 2026

86 min

May 11, 2026 00:31

UAE property buyers stay in the market despite regional tensions

## Market Resilience

Despite regional uncertainties, the UAE property market remains robust, with buyers taking more time to make decisions but still actively participating. A recent survey by Savills Middle East indicates that 45% of market participants plan to purchase a home within the next year, showing sustained interest despite geopolitical concerns.

## Buyer Preferences

The survey highlights a shift towards completed homes, with 60% of respondents preferring ready properties over off-plan units. This preference is driven by a desire for certainty in delivery and pricing. Buyers are becoming more selective, focusing on location, quality, and long-term value.

## Seller Confidence

Current property owners are largely holding onto their assets, with over 60% planning to maintain or expand their portfolios. Only a small fraction, about 4%, are considering selling, which helps stabilize prices and prevents a discount cycle.

## Market Dynamics

Dubai's real estate market continues to perform well, with a 4% increase in residential transactions in the first quarter of 2026 compared to the previous year. The total transaction value rose by 21% to Dh139.2 billion, although there was a 17% drop in volume from the previous quarter, reflecting more cautious decision-making.

## Segment Trends

Demand is shifting towards larger, higher-value homes, with villa and townhouse enquiries rising by 15%. In contrast, apartment enquiries have decreased by 31%. The prime segment remains strong, with transactions above Dh15 million increasing by 43% year-on-year.

## Future Outlook

The market is moving towards a more balanced phase, with softer transaction volumes and increased negotiation expected. While secondary apartments may face pressure, villas and prime residential assets are likely to remain resilient. Sellers with realistic pricing and high-quality assets are better positioned as buyers take longer to commit.

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