UAE property market sees buyer price-drop expectations ease as buyer-seller gap narrows, Property Finder analysis shows
The gap between buyer expectations and seller asking prices in the UAE property market continued to narrow in May 2026, signaling gradual market stabilization as participants adjust to evolving market conditions, according to the latest analysis released by Property Finder.
The data shows that the proportion of buyers expecting property prices to decline fell to 63% in May, down from more than 70% immediately after the onset of the conflict, marking the second consecutive monthly decline in expectations for lower prices.
At the same time, sellers have largely maintained pricing discipline, with advertised property prices remaining only around 2% below pre-conflict levels, compared with approximately 1% below in April.
Buyer sentiment shifts while sellers remain firm
Prior to the conflict, market sentiment was relatively balanced.
Property Finder’s January–February 2026 consumer sentiment survey showed buyers divided almost equally, with 36% expecting prices to decline, 35% anticipating increases, and 29% expecting prices to remain stable.
Following the onset of the conflict, expectations shifted sharply toward lower pricing as buyers delayed purchasing decisions in anticipation of larger discounts.
However, May data suggests those expectations are gradually moderating as market participants recalibrate their outlook.
According to the analysis, this reflects an ongoing price discovery process, where buyers and sellers progressively align on perceived market value.
Cherif Sleiman, Chief Revenue Officer at Property Finder, said narrowing expectations between both sides is an important indicator of improving market conditions.
He noted that stabilization driven by more balanced expectations rather than market volatility typically creates a healthier foundation for transaction activity to recover.
Rental market gains momentum as buyers delay purchases
While purchase activity remains cautious, demand has increasingly shifted toward the rental market.
Property Finder reported that new rental contracts in May were only 20% below pre-conflict levels, improving significantly from 32% below in March.
The figures suggest more residents are opting to rent temporarily while waiting for better clarity on property pricing.
Rental mobility also increased during the period.
Nearly 47% of rental activity in May involved tenants moving into new homes, compared with 41% in March, indicating stronger movement across the residential market rather than simple lease renewals.
Market participants adopt a more measured approach
Industry stakeholders say the current environment reflects disciplined decision-making rather than market distress.
Alessia Sheglova, Chief Executive Officer of Dacha Real Estate, noted that buyers have become more negotiation-focused and increasingly data-driven, while sellers continue to maintain pricing confidence for well-positioned properties.
She added that transaction activity is progressing through more realistic expectations instead of aggressive price corrections.
Similarly, Sam McCone, Managing Partner of McCone Properties, said buyer behavior has evolved from aggressive discount expectations toward more practical negotiations as market participants adjust to actual transaction values.
According to market observations, properties priced competitively continue to attract interest and complete transactions, while earlier stalled negotiations are beginning to move forward.
Property Finder said it will continue monitoring the relationship between buyer expectations and seller pricing behavior as a key indicator of market direction and future transaction momentum across the UAE real estate sector.
