RIYADH: The UAE residential market continues to show resilience, with nearly 45 percent of respondents planning to purchase property within the next 12 months, according to market research.
Savills Middle East’s latest UAE Residential Investor Sentiment Survey, which polled investors, end-users, and landlords, as well as tenants and prospective residents, also revealed 32 percent of respondents remain undecided about purchasing property, suggesting longer decision-making timelines rather than a drop in overall interest.
The findings come as the UAE property market navigates a more complex environment shaped by rising supply, moderating price expectations, and regional geopolitical uncertainty.
While developers continue to launch large-scale residential projects, particularly in Dubai, demand has remained supported by population growth, strong investor interest, and the country’s appeal as a global business and lifestyle hub.
Moody’s said in February that from 2026 to 2028, around 180,000 new units will be completed in Dubai, a significant increase from prior years that is likely to weigh on demand and slow price growth.
“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 behavior 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,” said Head of Residential Agency at Savills Middle East Andrew Cummings.
The survey further highlighted that the current market slowdown is notably not being fueled by distressed sales. More than 60 percent of existing property owners said they intend to either retain or grow their portfolios over the next six months, while only about 4 percent are considering selling. This limited selling activity is continuing to support prices across multiple segments, even as a widening gap emerges between buyer expectations and seller pricing.
It also highlighted stronger demand for completed properties over off-plan units, signaling a growing preference for greater certainty around delivery timelines, pricing, and immediate occupancy.
Around 60 percent of respondents favored ready properties, compared to roughly 23 percent who preferred off-plan assets.
Pricing expectations have adjusted, with more than 80 percent of respondents anticipating prices to either stabilize or decline over the next 12 months, leading to longer deal cycles, more negotiation, and a more selective buyer approach, particularly in the apartment segment, where supply is seen as more abundant.
That said, supply remains a key concern among respondents, with more than 60 percent saying a significant number of new units are entering the market.
Apartments are expected to be more exposed to this pipeline due to higher availability, while villas and townhouses are likely to remain relatively more resilient.
