Real Estate

The UAE residential property market continues to demonstrate resilience, with nearly 45% of respondents planning to purchase property within the next 12 months, according to the latest investor sentiment survey by Savills in the Middle East.

The findings suggest that while regional uncertainties have introduced caution and delayed decision-making, underlying demand remains strong across the market.

Demand Holds Firm Amid Uncertainty

The survey, conducted across investors, end-users, landlords, and tenants, revealed that an additional 32% of respondents remain undecided, pointing to longer consideration periods rather than reduced interest.

Importantly, the current slowdown is not driven by distress selling:

• Over 60% of property owners plan to hold or expand portfolios
• Only around 4% are considering selling

This limited selling pressure is helping to support property prices, even as a gap persists between buyer expectations and seller valuations.

Shift Toward Stability and End-User Demand

Following a period of rapid growth, the UAE market is now entering a more balanced phase, supported by:

• Population growth
• Sustained capital inflows
• A strong development pipeline

The data also highlights a maturing buyer base, with increasing participation from end-users and long-term investors, reducing speculative activity and enhancing market stability.

Preference for Ready Properties Gains Momentum

A notable trend is the shift toward completed properties, driven by a desire for certainty:

• Around 60% prefer ready properties
• Approximately 23% favour off-plan developments

This reflects growing emphasis on immediate usability, pricing clarity, and delivery assurance.

Pricing Expectations and Supply Concerns

Sentiment around pricing has softened:

• Over 80% expect prices to stabilise or decline in the next 12 months

This has led to:

• Longer transaction timelines
• Increased negotiation activity
• More selective buyer behaviour

At the same time, more than 60% of respondents believe new supply is rising, particularly in the apartment segment, which may face greater pressure compared to villas and townhouses.

Outlook: Measured Growth Ahead

According to Andrew Cummings, Head of Residential Agency at Savills Middle East, the market is experiencing a behavioural shift rather than a structural downturn, with buyers focusing on location, quality, and long-term value.

Looking ahead:

• Transaction volumes may soften in the short term
• Prime and villa segments are expected to remain resilient
• Market recovery will depend on confidence levels and supply absorption

Despite near-term caution, the UAE’s strong fundamentals position it well for sustained long-term growth.

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