The UAE real estate market is seeing a smaller difference between seller expectations and buyer offers, while many potential homeowners are choosing to continue renting instead of purchasing immediately.
UAE Property Market: Buyer-Seller Gap Shrinks as More Residents Continue Renting.
Property Finder data shows buyer expectations for price reductions fell to 63% in May, as more UAE residents renew rental agreements while buyers and sellers move closer towards realistic pricing.
UAE Property Market Sees Buyers and Sellers Move Closer as Confidence Returns
The difference between what UAE property buyers are willing to pay and the prices sellers are seeking has continued to reduce, showing signs of improving confidence in the real estate market following a period of uncertainty caused by regional tensions.
After the slowdown linked to the conflict, market activity has gradually started to recover, with buyers becoming less focused on expecting major price drops and sellers continuing to maintain their asking prices.
The latest figures from property platform Property Finder indicate that expectations of falling property prices among buyers have weakened in recent months. The proportion of buyers who believe prices could decline dropped to 63 per cent in May, marking another step down from the higher levels recorded immediately after the conflict began.
Following the start of the regional situation, more than 70 per cent of buyers were anticipating possible price reductions. Many potential purchasers delayed decisions, choosing to wait for better deals and hoping that sellers would lower their expectations.
However, that sentiment has slowly changed. The percentage of buyers expecting prices to fall has declined for two consecutive months, suggesting that confidence is gradually returning to the market.
Before the uncertainty emerged, buyer views in the UAE property sector were much more balanced. According to Property Finder’s consumer sentiment survey conducted during January and February, opinions were divided among buyers.
Around 36 per cent of respondents believed property prices could decrease, while 35 per cent expected values to rise. Another 29 per cent thought prices would remain mostly stable.
This showed that buyers entered the year with mixed expectations rather than a clear belief that prices would move in one direction.
The situation changed after the conflict began, creating more caution among buyers. Many started delaying purchasing decisions as they waited to see whether market conditions would create opportunities for lower prices.
The expectation of discounts became stronger, with a larger number of buyers believing that waiting could help them secure better deals.
However, as the market adjusted and activity began recovering, those expectations started to soften. The gradual decline in the number of buyers expecting price reductions suggests that confidence is improving and that many buyers are accepting current market conditions.
Sellers Continue to Hold Their Position
While buyers have adjusted their expectations, sellers have made only limited changes to their pricing strategies.
Property Finder’s listing price index shows that advertised property prices remained close to levels seen before the conflict. In May, asking prices were around two per cent lower than pre-conflict levels, compared with approximately one per cent lower in April.
This indicates that sellers have not made major reductions despite changing buyer sentiment.
Many property owners appear to be maintaining their price expectations, showing confidence that demand will continue supporting the market. Instead of significantly reducing prices, sellers have largely preferred to wait for suitable buyers.
As a result, the difference between buyer expectations and seller asking prices is becoming smaller, although the adjustment is happening gradually.
Market Moving Towards Greater Balance
The narrowing gap between buyers and sellers reflects a gradual shift towards a more balanced property environment.
During periods of uncertainty, buyers often become more cautious and expect opportunities to negotiate lower prices. Sellers, meanwhile, may prefer to wait rather than accept offers below their expectations.
This creates a gap between the two sides, which can slow transaction activity.
In the UAE market, that gap appears to be reducing as both groups adapt. Buyers are becoming less focused on waiting for large price drops, while sellers are slightly adjusting their expectations without making major changes.
The result is a market where negotiations may become easier and transactions could increase as both sides move closer together.
What This Means for Buyers and Sellers
For buyers, the changing sentiment suggests that waiting indefinitely for major discounts may not always lead to the expected outcome. With sellers continuing to hold firm and market confidence improving, some buyers may reconsider their plans and move forward with purchases.
For sellers, the data shows that maintaining realistic pricing remains important. While demand remains active, buyers continue to compare options carefully and are looking for value before committing.
The UAE property market has shown resilience despite recent uncertainty. The gradual recovery in buyer confidence, combined with stable seller expectations, indicates that the market is entering a more balanced phase.
Although conditions can continue to change depending on economic and regional developments, the latest trends suggest that the gap between what buyers want to pay and what sellers expect to receive is slowly closing.
As confidence returns, the focus may shift from waiting for major price corrections to finding suitable opportunities in a market where expectations between both sides are becoming increasingly aligned.
Market Adjustments Underway as UAE Buyers and Sellers Find Common Ground
The UAE property market is currently going through a phase of adjustment, with buyers and sellers gradually moving closer towards a shared understanding of property values. Industry experts describe this stage as a period of “price discovery” — a natural process where market participants determine realistic prices through changing expectations, negotiations and activity levels.
Cherif Sleiman, chief revenue officer at Property Finder, said the current situation reflects a market finding its balance after a period of uncertainty.
When buyers and sellers have significantly different expectations, transactions often slow down because both sides wait for the other to make the first move. Buyers may delay purchases in the hope of better prices, while sellers may hold onto their asking prices rather than accept lower offers.
According to Sleiman, the current narrowing of the gap shows that expectations are becoming more aligned. Instead of a sudden correction driven by panic or fear, the market appears to be adjusting gradually as confidence returns.
He explained that stability in expectations is an important part of a healthy property market. When buyers begin to believe that prices are unlikely to fall sharply and sellers maintain more realistic expectations, the conditions become more favourable for transactions to resume.
A market driven by uncertainty can create hesitation among buyers and sellers. However, when both sides have a clearer view of property values, decision-making becomes easier and activity can begin to improve.
The current adjustment is therefore not simply about prices moving up or down. It is about both sides understanding where the market stands and becoming more comfortable with those conditions.
Buyers Shift Focus Towards Renting
While some potential buyers have delayed property purchases, demand has not disappeared. Instead, many residents have redirected their plans by choosing to rent homes while waiting for more clarity in the sales market.
This shift has supported activity in the rental sector, where demand has shown signs of recovery.
New rental contracts in May were only 20 per cent below levels recorded before the conflict, representing a significant improvement compared with March, when activity was 32 per cent lower.
The improvement suggests that residents who may have postponed buying decisions are still actively searching for housing solutions.
Rather than rushing into purchases during a period of uncertainty, some residents appear to be taking a temporary rental approach. This allows them to secure accommodation while keeping the option open to buy later when they feel more confident about market conditions.
Rental Market Shows Renewed Movement
Another sign of improving activity is the increase in people taking up new rental homes rather than simply extending existing agreements.
In May, around 47 per cent of rental activity involved residents moving into new properties. This was higher than the 41 per cent recorded in March.
The rise indicates that the rental market is seeing more movement, with tenants making active decisions about relocating rather than remaining in their current homes.
This trend can reflect several factors, including residents adjusting their housing choices, changing job situations, looking for better locations or taking advantage of available rental options.
A stronger rental market can also provide an important indicator of broader confidence. When people are willing to move homes and sign new agreements, it suggests that they are making longer-term decisions rather than waiting entirely on the sidelines.
A Gradual Return of Confidence
The latest market behaviour highlights a shift from the cautious approach seen immediately after the period of uncertainty.
Initially, many buyers expected sellers to reduce prices significantly, leading to a gap between what purchasers were willing to pay and what owners wanted to receive.
As time passed, those expectations began to change. Buyers became less focused on waiting for large price reductions, while sellers continued adjusting their strategies based on market demand.
The result has been a slower but more stable movement towards agreement.
Experts say this type of adjustment is common in property markets. Before transaction volumes increase, buyers and sellers often need time to understand new conditions and rebuild confidence.
The current trend suggests that the UAE property market is moving through that stage.
What This Means for Future Transactions
If the gap between buyer expectations and seller pricing continues to narrow, it could create a more favourable environment for property deals.
For buyers, this may mean fewer opportunities for major discounts but greater certainty about market direction.
For sellers, maintaining competitive pricing and understanding buyer expectations will remain important as competition continues.
The market is not showing signs of a sudden surge or a dramatic correction. Instead, the current pattern points towards gradual stabilisation.
The recovery in rental activity, combined with changing buyer sentiment, suggests that residents are adapting to the current environment while continuing to make housing decisions.
As expectations become more balanced, the UAE property sector could see improved transaction activity in the coming months.
The focus now is less on waiting for extreme price changes and more on finding realistic agreements between buyers and sellers — a process that could help create a stronger and more stable market moving forward.
Buyer and Seller Expectations Move Closer as UAE Property Market Stabilises
The difference between buyer expectations and seller asking prices in the UAE property market is gradually becoming smaller, with industry experts saying the shift is happening through careful decision-making rather than sudden market pressure.
Real estate professionals say both sides are becoming more realistic about current conditions. Buyers are still negotiating and looking for value, but many have recognised that attractive properties in strong locations are unlikely to see dramatic price reductions.
At the same time, sellers are continuing to maintain their positions, particularly when their properties are competitively priced and supported by strong demand.
Alessia Sheglova, CEO of Dacha Real Estate, said current market behaviour reflects a more thoughtful approach from both buyers and sellers rather than a reaction driven by uncertainty or urgency.
According to her, buyers today are approaching the market with more research and preparation. Instead of making decisions based only on expectations of discounts, many are analysing property values, comparing options and understanding what represents a fair deal.
She explained that while buyers are negotiating more actively than before, they are also recognising that well-located and correctly priced homes continue to attract interest and are not necessarily available at heavily reduced prices.
For sellers, the approach has also changed. Owners with properties in desirable areas or those who have set realistic asking prices are still finding buyers. Rather than lowering prices significantly, many sellers are choosing to wait for serious offers that reflect the actual value of their properties.
This has created a situation where the gap between what buyers want to pay and what sellers expect to receive is narrowing gradually.
The adjustment is not happening through a sharp fall in property prices but through both sides developing more practical expectations.
Buyers Become More Strategic
The recent market environment has encouraged buyers to become more careful and selective.
During periods of uncertainty, some buyers tend to delay decisions, expecting sellers to reduce prices significantly. However, as market conditions become clearer, many are realising that waiting for unrealistic discounts may not always result in better opportunities.
Instead, buyers are focusing on properties that offer long-term value. Factors such as location, quality, amenities, developer reputation and potential future demand are becoming more important in purchase decisions.
This change in behaviour has reduced the number of extremely low offers being made in the market.
Buyers are still negotiating, but the approach has become more balanced. Rather than assuming sellers are under pressure, many purchasers now understand that good properties continue to attract competition.
Sellers Hold Firm on Quality Properties
While buyers are adjusting their expectations, sellers are also maintaining confidence, especially when their properties are positioned correctly.
Industry experts say owners of desirable properties are less likely to accept major price cuts because demand remains present for homes that match buyer preferences.
Properties in popular locations, with strong facilities or attractive pricing, continue to perform well compared with those that are overpriced or less competitive.
This has encouraged sellers to focus more on realistic valuation rather than reacting to every market change.
The result is a gradual alignment between both sides, where buyers understand the limits of negotiation and sellers recognise the importance of meeting market expectations.
Negotiations Becoming More Realistic
Sam McCone, managing partner of McCone Properties, said the difference between buyers and sellers has been reducing consistently.
He explained that immediately after the conflict began, some buyers entered negotiations expecting many sellers to be under pressure and willing to accept significantly lower offers.
While some sellers did face urgent situations, McCone said the overall market did not see widespread distress selling.
As a result, many buyers who initially made very low offers have changed their approach. They are still negotiating, but they are doing so with a better understanding of current market conditions.
According to McCone, buyers are increasingly recognising that securing a good property at a reasonable price is possible, but expecting extremely large discounts is less realistic.
This shift has helped revive discussions between buyers and sellers, allowing previously delayed transactions to move forward.
Deals Begin Moving Again
As expectations become more aligned, some transactions that had been delayed earlier in the year are now progressing.
Many buyers and sellers were previously waiting for the other side to adjust first. Buyers hoped prices would fall further, while sellers waited for demand to improve.
However, as both groups have become more comfortable with current market conditions, more agreements are being reached.
Properties that are priced appropriately are continuing to attract interest, while buyers who are serious about purchasing are becoming more willing to proceed.
The market is therefore showing signs of stability rather than experiencing a major correction.
A More Balanced Property Environment
The current trend suggests that the UAE property market is moving towards a more balanced phase.
Instead of extreme expectations from either side, buyers and sellers appear to be finding a middle ground based on actual market conditions.
Experts believe this type of adjustment is healthier for long-term market confidence because it allows transactions to happen based on realistic valuations.
For buyers, this means opportunities still exist, but they may need to focus on fair negotiations rather than waiting for major price drops.
For sellers, it highlights the importance of accurate pricing and understanding what buyers are willing to pay.
As the gap continues to narrow, the property market could see stronger activity as confidence improves and more participants become comfortable with current pricing levels.
