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UAE buyer-seller price gap narrows as house-hunters opt to rent for now
Price drop expectations among buyers eased to 63% in May, while more residents choose new rental contracts as both sides edge closer on value, reveals Property Finder data
- PUBLISHED: Mon 29 Jun 2026, 12:17 PM
The gap between what UAE home buyers expect to pay and what sellers are asking has narrowed further as property markets continues to gain momentum after the slowdown due to the regional conflict.
According to the latest analysis from property portal Property Finder, the share of buyers expecting prices to fall eased to 63 per cent in May, down from a peak of more than 70 per cent immediately after the onset of the conflict. This marked the second consecutive monthly decline, even as sellers' advertised prices remained close to pre-conflict levels.
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Before the conflict, buyer sentiment in the UAE was fairly evenly divided. Property Finder’s January-February consumer sentiment poll found buyers split almost equally: 36 per cent expected prices to fall, 35 per cent expected a rise, and 29 per cent anticipated prices holding steady.
Once the conflict began, the majority of buyers shifted towards expecting price reductions and held off on purchases in anticipation of discounts. That expectation of a decline has eased every month since, reaching 63 per cent in May – a clear, if gradual, adjustment.
Sellers, meanwhile, have moved only marginally.
Property Finder’s proprietary listing price index shows advertised asking prices sitting roughly two per cent below pre-conflict levels in May, compared with about one per cent below in April. With sellers largely holding firm, the gap between the two sides is closing, albeit slowly.
Price discovery in motion
Cherif Sleiman, chief revenue officer at Property Finder, described this as the market working through price discovery – the process by which buyers and sellers gradually align on what homes are worth.
“When buyers and sellers sit far apart on price, deals take a pause, and that distance is exactly what’s narrowing now. What matters is how it’s narrowing: through expectations settling, not through panic on either side. A market where more people expect prices to hold is steadier ground than one swinging between fear and optimism, and that steadiness usually has to come first. Typically, the two sides close that gap before deals start picking up again, not after; which is why we watch this behavioral pattern as closely as the transaction numbers itself.”
Demand has not declined so much as redirected, with more people choosing to rent now rather than wait for prices to settle further. New rental contracts in May were just 20 per cent below pre-conflict levels, a sharp recovery from 32 per cent below in March.
Nearly half of all rental activity in May – 47 per cent – consisted of people actively moving into new homes rather than simply renewing existing leases, up from 41 per cent in March, a sign that points to renewed momentum in the rental market.
Gap closes every day
Alessia Sheglova, CEO of Dacha Real Estate, said the shift reflects a strategic, rather than panicked, consumer base.
“From what we are seeing on the ground, this is not a market defined by panic, but by a more disciplined approach from both buyers and sellers. Buyers are negotiating harder and are much more data-driven, but they are also realising that well-priced and desired properties are not being heavily discounted. Sellers, on the other hand, are still holding relatively firm, especially where the property is in a strong location or priced sensibly. The gap is closing, but it is closing through more realistic expectations rather than a sharp correction,” she said.
Sam McCone, managing partner of McCone Properties, said the gap closes every day.
“When the conflict first started we saw a lot of buyers opening with offers well below asking, expecting to find many sellers desperate to sell. And there were a few but all things considered not that many. And now whilst buyers are still negotiating hard, the lowball approach is fading because most buyers have realized that if they're serious about buying a home in this market they'll be able to get a good deal but not at a ridiculously low price. Sellers who are priced sensibly are transacting, and the deals that stalled earlier in the year are starting to close once both sides accept where value actually sits,” McCone said.
