UAE Property Market Sentiment Shifts: 44% of Buyers Anticipate Price Decline in Coming Months

A recent consumer sentiment survey by Property Finder reveals a growing perception among UAE property buyers that prices may soften in the near future. As of June 2025, 44% of surveyed buyers expect property prices to decline over the next six months. In contrast, 30% foresee continued price increases, while 26% predict market stability.

This shift in sentiment marks a notable change from May 2025, when 37% expected a price drop, 34% anticipated increases, and 29% believed prices would remain unchanged. According to Property Finder, this evolving perspective suggests that buyers are becoming more cautious and informed, reflecting a maturing outlook amid ongoing market evolution.

To monitor these trends more closely, Property Finder has launched PF Market Pulse, a bi-monthly survey capturing real-time insights into consumer behavior and market expectations across the UAE’s real estate landscape.

Over the past four years, UAE property prices have seen strong double-digit growth, driven by an influx of foreign professionals, entrepreneurs, and high-net-worth individuals. Key attractions include the UAE’s safety, strong job market, and favorable investment climate. However, analysts and brokerage firms now suggest that price growth is tapering, with potential corrections in some communities.

The ValuStrat Price Index (VPI) supports this trend, showing year-on-year apartment price increases of 19.1% and villa prices up by 28.7% in Dubai’s freehold areas. While still rising, these figures are down from 2024’s gains of 23.4% (apartments) and 33.4% (villas), signaling a moderation in growth. Similarly, rental price growth has eased, with apartment rents up 7.2% and villa rents rising 4.8% annually.

Further influencing market sentiment is the anticipated influx of new residential supply. CBRE reports that since 2020, Dubai has averaged 30,000 new units per year, but this figure is expected to double. Roughly 300,000 new units are scheduled for delivery by the end of 2029, averaging around 60,000 per year, which could apply downward pressure on prices over time.

Despite these developments, demand for property ownership remains robust. Property Finder notes that 72% of active buyers and sellers in the UAE plan to purchase within the next six months, driven by rising rental costs and capital appreciation.

Sevgi Gur, Chief Marketing Officer at Property Finder, commented:

“The findings reflect a healthy, evolving real estate landscape in the UAE. Buyers today are more informed and responsive to market indicators, yet their enthusiasm for home ownership remains strong.”

The inaugural PF Market Pulse survey collected feedback from over 13,000 respondents, all of whom are actively engaged with the UAE property market — tracking trends, monitoring price movements, and planning their next real estate decisions with growing sophistication.

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