UAE homebuyers give up waiting for big price drops as property market finds balance

UAE homebuyers are becoming less convinced prices will fall as sellers hold firm, Property Finder says, while rental demand continues to recover.

UAE homebuyers are becoming less convinced that major price reductions are on the way, as the gap between buyer expectations and seller asking prices continues to narrow, according to the latest Property Finder market analysis.

The findings suggest the residential market is gradually finding a new balance, with buyers adjusting their expectations rather than sellers making significant price cuts. At the same time, rental activity is gathering momentum as more residents choose to move home instead of waiting on the sidelines.

Before the conflict, Property Finder’s January-February 2026 consumer sentiment survey showed a market with mixed expectations. Around 36 per cent of buyers expected prices to fall, 35 per cent expected prices to rise and 29 per cent believed prices would remain broadly unchanged.

That changed dramatically after the conflict began, when more than 70 per cent of buyers expected prices to decline and many delayed purchases in anticipation of larger discounts.

However, buyer sentiment has shifted steadily over the past two months.

UAE real estate analysis

In May, the proportion of buyers expecting prices to fall eased to 63 per cent, marking the second consecutive monthly decline and indicating that expectations are gradually moving back towards equilibrium.

Meanwhile, sellers have shown little willingness to cut prices.

Property Finder’s proprietary listing price index found advertised asking prices were approximately 2 per cent below pre-conflict levels in May, compared with around 1 per cent below in April.

According to the company, this gradual convergence represents a period of price discovery, where buyers and sellers slowly align on what properties are worth.

Cherif Sleiman, Chief Revenue Officer at Property Finder, said: “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 behavioural pattern as closely as the transaction numbers itself.”

UAE rental market momentum

Rather than disappearing altogether, housing demand has shifted towards renting while buyers and sellers continue to adjust to market conditions in the UAE.

Property Finder said the volume of new rental contracts in May was 20 per cent below pre-conflict levels, recovering from 32 per cent below in March.

The composition of the rental market also changed.

Nearly half (47 per cent) of rental activity in May involved people moving into new homes rather than renewing existing leases, up from 41 per cent in March.

According to Property Finder, rising levels of move-ins rather than renewals are a sign that activity and confidence are returning to the rental market.

UAE buyers becoming more realistic

Alessia Sheglova, CEO of Dacha Real Estate, said the latest trends point to a market driven by increasingly disciplined buyers and sellers rather than fear.

“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. For brokers, this is where experience matters most – accurate pricing, honest advice, and managing expectations on both sides allow transactions to move forward.”

Sam McCone, Managing Partner of McCone Properties, said buyers are still negotiating aggressively, but expectations have become more realistic.

“On the ground, we are seeing the gap close 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 realised 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.”

UAE property buyers

The latest Property Finder analysis suggests the market is stabilising through changing expectations rather than widespread price reductions.

For prospective buyers in the UAE, the data indicates:

• Expectations of steep UAE price falls are easing
• Sellers continue to hold relatively firm on asking prices
• Negotiation remains possible, but significant discounts are becoming less common
• Rental demand is recovering as more residents move into new homes
• Brokers are seeing previously stalled transactions begin to complete as buyers and sellers agree on realistic valuations in the UAE