A growing number of property buyers in the UAE are expecting home prices to decline over the next six months, reflecting a shift in market sentiment as supply increases and price growth slows. According to a recent consumer sentiment survey by Property Finder, 44% of prospective buyers believe property prices will drop, while 30% expect a continued increase. The remaining 26% forecast prices to stay stable through June 2026.
This is a noticeable change from May 2026, when opinions were more evenly split: 37% expected a decrease, 34% anticipated a rise, and 29% thought prices would hold steady. Analysts interpret this shift as a sign that buyers are becoming more discerning, suggesting that the market may be entering a more mature phase after several years of sharp increases.
The insights come from PF Market Pulse, a new bi-monthly survey launched by Property Finder to capture real-time opinions of active buyers and sellers across the UAE. The initiative provides a snapshot of how consumer confidence is evolving alongside broader market conditions.
Over the past four years, the UAE’s property sector has experienced a strong rebound, with prices rising at a double-digit pace. This surge was driven by increased demand from international investors, professionals, and high-net-worth individuals attracted by the country’s economic stability, safety, and lifestyle offerings.
However, the pace of growth now appears to be moderating. According to the ValuStrat Price Index, capital values for Dubai’s freehold residential properties are still rising, but more slowly than in 2024. As of the latest data, apartment prices are up 19.1% year-on-year, while villa prices have grown by 28.7%. This compares with growth rates of 23.4% and 33.4%, respectively, during the same period last year. Rental increases are also cooling, with apartment rents up 7.2% and villa rents rising 4.8% annually.
One of the key factors influencing buyer expectations is the upcoming wave of new property supply. Dubai, in particular, is set to see a significant increase in residential units in the next few years. CBRE reports that since 2020, an average of 30,000 units have been delivered annually. However, the future pipeline is far larger, with approximately 300,000 units expected to be completed by the end of 2029 — doubling the current average to around 60,000 units per year.
Despite these changing dynamics, demand for home ownership in the UAE remains strong. Property Finder's survey revealed that 72% of home seekers and sellers are planning to buy a property within the next six months. This trend is driven by rising rents, capital appreciation, and a desire among residents to invest in long-term living solutions.
Sevgi Gur, Chief Marketing Officer at Property Finder, said the survey results indicate a resilient and increasingly informed group of buyers. “Consumers are becoming more responsive to market signals, showing a deeper understanding of price trends and supply cycles,” she noted.
The PF Market Pulse survey engaged more than 13,000 active participants who are closely following market developments. Their responses reflect a shifting but still optimistic view of the UAE property landscape, where opportunities remain strong — especially for those looking to enter the market at a more balanced time.
