UAE property market steady despite geopolitical uncertainty

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UAE property market remains resilient as geopolitical uncertainty slows activity but demand and long-term fundamentals stay strong.

DUBAI: UAE property market is showing signs of recalibration rather than decline, as recent geopolitical developments influence buyer sentiment without impacting core demand. Insights shared by Betterhomes during a recent market update webinar indicate a temporary pause in decision-making rather than a structural shift.

The UAE property market has experienced a slowdown in transaction volumes, particularly in March. However, this has been attributed to short-term factors including Ramadan, Eid, school holidays, and weather-related disruptions, alongside regional uncertainty. Market activity in Dubai continues largely unaffected, with responses described as measured.

Off-plan properties remain a key driver, accounting for around 70 per cent of transactions over the past year. This segment continues to align with Dubai’s long-term growth strategy, with buyers favouring newer developments and well-located, high-quality projects. The UAE property market therefore continues to be supported by strong underlying fundamentals.

Buyer behaviour is evolving, with increased selectivity and focus on value and long-term potential. Asking prices have adjusted by approximately 13 per cent, reflecting a correction after sustained growth rather than signs of distress.

In the leasing segment, demand softened briefly, with enquiries dropping by about 40 per cent in early March before stabilising. Increased supply from accidental landlords has added competition, contributing to a more balanced rental environment.

According to Betterhomes, the current phase highlights the importance of pricing discipline and strategic planning. The UAE property market is entering a more considered cycle, where informed decision-making and realistic expectations are becoming essential.

Overall, while uncertainty has influenced behaviour, demand remains intact, reinforcing confidence in the market’s resilience and long-term outlook.

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