betterhomes says recent regional developments are impacting sentiment rather than fundamentals in the UAE property market, with activity slowing but underlying demand remaining intact.
Speaking during a market update webinar hosted last week, betterhomes’ leadership team, including its CEO, Head of Off-Plan and Capital markets, and Head of Leasing, said recent geopolitical events should be understood as a short-term pause in decision-making rather than a structural shift in the market.
The disruption has slowed decision-making, but not derailed the UAE property market, with off-plan continuing to drive activity, leasing demand beginning to stabilise, and buyers becoming more selective.
While transaction volumes softened in March, this was attributed to a combination of geopolitical and short-term factors, including Ramadan, Eid, school holidays and recent weather-related disruptions, rather than a deeper change in market direction. Daily life and business activity in Dubai remain largely unaffected, with the market response described as measured rather than disruptive.
Off-plan continues to underpin market activity, accounting for approximately 70 per cent of total transactions over the past 12 months. The segment remains aligned with Dubai’s long-term growth agenda, with buyers continuing to favour newer developments, stronger locations and higher-quality product.
Across the market, buyer behaviour is becoming more selective, with increased focus on value, positioning and long-term potential. Asking prices have adjusted by approximately 13 per cent, reflecting a market correction following a sustained period of growth rather than signs of distress.
In the leasing market, enquiries declined by around 40 per cent in early March before showing signs of stabilisation, indicating a short-term pause rather than a sustained drop in demand. At the same time, an increase in accidental landlords has added supply, contributing to a more competitive rental environment.
betterhomes said the current phase reinforces the importance of strategy, pricing discipline and professional guidance, particularly as the market transitions into a more considered and selective cycle.
The message from the webinar was clear: uncertainty has reshaped behaviour, not demand, placing greater emphasis on informed decision-making and realistic expectations.
