While the share of buyers expecting a price drop softened slightly in August, expectations for price increases stayed flat at 32 percent
Home seekers in the UAE continue to drive demand across the nation’s property market, signaling resilience in buyers’ intent to purchase property despite evolving expectations on price movements.
According to Property Finder’s Market Pulse for July and August 2025, nearly 70 percent of respondents in July and an even higher 72 percent in August said they plan to buy a property within the next six months. This consistency underscores strong and sustained demand in the UAE’s property market.
Buyers balance optimism with caution on pricing trends
The poll highlights that while buyer intent remains robust, views on UAE property prices are adjusting. While the share of buyers expecting a price drop softened slightly in August (38 percent compared to 40 percent in July), expectations for price increases stayed flat at 32 percent,and more buyers began to see prices holding steady (30 percent compared to 28 percent).
Despite this stabilization in sentiment, intent to buy homes in the UAE’s property market has not wavered, with a majority of respondents in both July and August still indicating a commitment to purchase within the next six months.
This confidence highlights steady momentum in the UAE’s real estate market, even as buyers balance optimism with caution on pricing trends.
More tenants are choosing to purchase homes in Dubai
Although this trend is seen across all of the UAE’s property market, it is particularly pronounced in Dubai, where the market is witnessing a decisive shift as more tenants are choosing to purchase homes rather than remain in the rental cycle. The trend is underscored by a 22 percent increase in secondary market sales in the first eight months of 2025 compared to the same period last year, reflecting growing confidence among residents who increasingly view Dubai as a permanent base.
The transition is particularly evident among families and young professionals who see property ownership as a way to build equity, secure long-term stability and escape escalating rental costs, said Engel & Völkers Middle East in its latest report.
Dubai’s residential real estate market recorded another milestone in August, with 17,879 transactions worth AED42.4 billion, a 17 percent increase in volume and a 12 percent rise in value year-on-year. Off-plan sales continued to dominate, rising 25 percent annually and accounting for nearly three-quarters of all transactions, while the secondary market maintained strong momentum on the back of end-user demand. Larger family homes led the way, with sales of four-bedroom properties climbing 70 percent and those of five-bedroom or larger properties up 63 percent compared to last year.
Rental yields remain a cornerstone of Dubai’s real estate appeal for global investors. Average gross yields in August stood at 6.76 percent overall, with apartments at 7.12 percent and villas at 4.92 percent. Overall leasing volumes, however, declined 4 percent year-to-date, with new contracts falling 14 percent but renewals edging up 2.6 percent. The trend is especially pronounced in the luxury segment, where large villa leases fell by double digits an indicator that many families are choosing to buy rather than rent.
Source: economymiddleeast