Nearly 45 per cent of respondents in the UAE plan to buy residential property within the next 12 months, according to Savills Middle East’s latest UAE Residential Investor Sentiment Survey.
The survey, conducted among investors, homeowners, tenants and prospective residents, points to continued confidence in the UAE property market despite slower decision-making linked to regional geopolitical developments.
Buyer confidence
Savills said another 32 per cent of respondents remain undecided about purchasing property, showing that many buyers are taking more time before making decisions rather than leaving the market altogether.
The report also found that more than 60 per cent of existing property owners plan to either hold or expand their portfolios over the next six months, while only around 4 per cent are considering selling.
This limited selling activity is helping support property prices across several segments.
Ready homes preferred
The survey highlighted growing demand for ready properties, with around 60 per cent of respondents favouring completed homes over off-plan projects.
Only about 23 per cent said they preferred off-plan properties, reflecting stronger interest in homes that offer immediate use and delivery certainty.
Savills said the market is also becoming more driven by end-users and long-term investors instead of short-term speculative buyers.
Market adjustment
According to the survey, more than 80 per cent of respondents expect property prices to either remain stable or soften slightly over the next year.
This has led to longer transaction periods and increased negotiations, especially in the apartment segment where supply levels are higher.
More than 60 per cent of participants also believe a large number of new residential units are entering the market.
Long-term outlook
Andrew Cummings, Head of Residential Agency at Savills Middle East, said: “While regional developments have understandably introduced a degree of caution into the market, the data clearly shows that demand remains intact. What we are seeing is a shift in behaviour rather than a drop in interest, buyers are taking more time, becoming more selective and focusing on fundamentals such as location, quality and long-term value.”
He added: “As a result, the market is moving towards a more balanced and sustainable phase, rather than experiencing any structural correction.”
Savills expects villas and prime residential properties to remain more resilient in the coming months, supported by the UAE’s long-term population growth, capital inflows and continued housing demand.
