Nearly 45 per cent of respondents in the UAE plan to purchase property within the next 12 months, according to Savills Middle East’s UAE Residential Investor Sentiment Survey, despite a more cautious market backdrop shaped by regional uncertainty. Another 32 per cent remain undecided, pointing to slower decision-making rather than weakening demand.
The survey, which included investors, end-users, landlords, tenants and prospective residents, means the residential market is shifting into a more balanced phase after several years of strong growth. Activity has moderated in some segments, particularly secondary apartments, while prime assets and villas continue to show relative resilience.
Original article: UAE real estate: 45% plan to buy property despite cautious market by Arabian Business.
Key Insights:
Buyers Prioritize Ready Homes and Long-Term Value
Savills said buyer behavior has become more selective, with greater focus on location, quality, pricing and long-term value. Around 60 per cent of respondents said they prefer completed homes, compared with roughly 23 percent favoring off-plan properties.
Owner-occupiers and long-term investors continue to drive demand, according to the consultancy, rather than short-term speculative activity. In the secondary market, buyers have become more measured since the onset of regional conflict, while fewer off-plan launches since March have limited visibility on broader market momentum.
Andrew Cummings, Head of Residential Agency at Savills Middle East, said, “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 behaviour 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.”
Limited Selling Pressure Supports Market Stability
More than 60 per cent of existing property owners said they plan to hold or expand their portfolios over the next six months, while only around 4 per cent are considering selling. Savills said the absence of widespread selling pressure continues to support pricing across several segments, despite a growing gap between buyer expectations and seller pricing.
More than 80 per cent of respondents expect prices to either soften or remain stable over the next 12 months, contributing to longer transaction timelines and increased negotiation activity.
“At the same time, the absence of widespread selling pressure reflects continued confidence among existing property owners, many of whom are well-positioned following the strong performance seen in recent years. As a result, the market is moving towards a more balanced and sustainable phase, rather than experiencing any structural correction.” – Andrew Cummings
Supply Concerns Continue to Shape Sentiment
More than 60 per cent of respondents said the volume of new supply entering the market remains a concern, with apartments expected to face greater pressure than villas and townhouses.
Savills said geopolitical uncertainty has become the primary barrier to market entry for many buyers, ahead of pricing and financing concerns. The consultancy expects transaction volumes to remain softer in the near term, with more selective demand and continued strength in prime residential segments.
