UAE: Over 40% of property buyers expect a drop in prices in the coming months

Property buyers are increasingly expecting prices to cool over the next six months, according to a survey released by Property Finder.

Around 44 per cent of property buyers expect a price drop, while 30 per cent expect increases, and 26 per cent see prices remaining stable in June 2025.

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In the previous month of May, buyers were fairly divided, with 37 per cent believing prices would decrease, 34 per cent expecting increases, and 29 per cent anticipating stability.

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“This shift suggests a growing perception that recent price surges may be easing, a sign of a more mature, considered view among home seekers and buyers as the market continues to evolve,” the brokerage firm said.

The property portal also launched PF Market Pulse, a bi-monthly consumer sentiment survey that captures real-time insights into buyer and seller behaviour and market expectations across the UAE’s property landscape.

Property prices have rallied over the past four years as a large number of foreign professionals, businessmen, and millionaires flocked to the country due to its safety and security, investment opportunities and job openings. Prices in the UAE, on average, have seen a double-digit increase over the past few years.

Most of the property brokerages and consultancies expect prices to have started to stabilise, and drop in some of the communities, after a four-year-plus rally.

According to the ValuStrat Price Index (VPI), capital values in Dubai’s freehold residential market continued to grow, though at a slower pace compared to 2024. Apartment prices rose by 19.1 per cent year-on-year, while villa prices increased by 28.7 per cent. This marks a slowdown compared to the same period last year, when apartment prices had risen by 23.4 per cent and villa prices by 33.4 per cent. Similarly, rental growth also moderated, with villa rents up 4.8 per cent and apartment rents up 7.2 per cent annually.

Moreover, the UAE — especially Dubai — will also see a higher supply of new properties in the next couple of years, which will also put prices under pressure.

According to CBRE, residential supply has been growing steadily post-pandemic, averaging 30,000 units per year since 2020. However, it added that the future pipeline has now swelled to unprecedented levels, with around 300,000 units set for delivery by the end of 2029, averaging around 60,000 per year.

Importantly, Property Finder said more than seven out of 10 — 72 per cent — home seekers and sellers in the UAE plan to buy within six months, reflecting strong demand for home ownership in the country amidst rising rentals and capital appreciation.

Sevgi Gur, chief marketing officer at Property Finder, said the results not only highlight a resilient appetite for home ownership in the UAE but also reflect a more informed, confident buyer that’s increasingly responsive to market signals.

According to Property Finder, over 13,000 respondents participated in the inaugural survey period of home buyers and sellers who were actively tracking market trends, pricing cycles, and supply shifts.

Waheed Abbas

waheedabbas@khaleejtimes.com

Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.