Dubai property market steady, no sign of distress sales

Dubai: Dubai’s real estate market continues to show resilience, with little sign of the distressed deals many had expected to emerge.

Recent data from leading property platforms highlights a shift in buyer behaviour, with more deliberate decision-making and careful comparisons. However, demand remains strong, with high levels of engagement and serious buyers continuing to move toward transactions.

Industry experts say this signals a maturing market rather than the beginning of a downturn.

“We are seeing a clear evolution in how buyers approach decisions,” said Luke Remington, Managing Director at haus & haus. “There’s more analysis, more comparison, and more negotiation but not the kind driven by distress. Buyers want fair value, not fire sales.”

Demand for villas remains particularly strong in sought-after communities such as Dubai Hills Estate, Palm Jumeirah and Arabian Ranches, where supply continues to lag. These areas, popular with end-users and long-term investors, are seeing minimal pricing pressure as sellers remain financially secure and in no rush to sell.

The apartment segment is also holding steady, especially in prime locations including Dubai Marina, Downtown Dubai and Business Bay. One- and two-bedroom units continue to attract strong interest, while mid-market segments are seeing some increased flexibility due to rising inventory. Even so, price adjustments remain modest.

“Negotiation has returned, but that’s a sign of a healthy market. Buyers are making offers below asking, but transactions are still closing within 5% to 15% of peak values. That’s typical of a functioning, stable environment, not a distressed one,” said Calum White, CEO and Founder of White & Co.

A major factor supporting the market is the behaviour of sellers. Unlike previous downturns, most property owners are well-capitalised and under little pressure to offload assets quickly, helping maintain price stability.

“Many expected uncertainty to trigger a wave of discounted inventory, but that hasn’t materialized,” said Fibha Ahmed, Vice President of Property Sales at Bayut. “Instead, we are seeing a more disciplined market where both buyers and sellers are adjusting expectations without panic,” noted Ahmed.

This shift is also reflected in how deals are progressing. Agents report longer decision cycles, more property viewings, and structured negotiations, as buyers prioritise quality, location and developer credibility especially in the off-plan segment.

“The conversation has shifted from timing the market to understanding value within it. That’s a much healthier foundation for long-term growth,” Remington added.

The report says while some buyers remain on the sidelines in anticipation of price dips, current indicators suggest the market is stabilising rather than softening. Prices continue to be supported by steady demand, limited distress and a consistent inflow of local and international investors.