Online property searches in Dubai have climbed above pre-conflict levels, pointing to growing buyer interest despite a slowdown in transaction activity during May, according to data presented by betterhomes during its latest monthly market webinar.
The company said online searches are now 5% higher than the full-year 2025 baseline, while transaction values increased by more than 60% month-on-month in May. Transaction volumes remained largely unchanged during the period.
Buyer demand grows
Data from the Dubai Land Department showed secondary market sales volumes fell 25% in May. Apartment sales declined 18%, while villa and townhouse transactions dropped 44%.
betterhomes attributed the slowdown largely to the Eid holiday period, which reduced the month to around three weeks of trading.
Louis Harding, CEO of betterhomes, said: “Things are rebounding a lot quicker than I expected. There is a significant amount of pent-up demand building. Buyers are active online, speaking to mortgage brokers and getting ready to move. We are waiting for a trigger, and when it comes, I expect the market to respond quickly.”
Off-plan trends
The off-plan market continued to account for more than 65% of total transactions in May.
While transaction volumes in the segment fell by around 45%, villas and townhouses in established communities recorded value growth of between 7% and 8%. Apartment values, however, declined by about 26%, reflecting higher supply levels.
Rental market shifts
Dubai’s rental market also recorded a widening gap between demand and supply.
Inquiry volumes increased by nearly 30% during May, while new listings declined. As a result, the inquiry-to-listing ratio doubled from 6:1 in April to 12:1 in May.
According to betterhomes, rental stock advertised on property portals is around 70% higher than pre-conflict levels, while its own rental listings are nearly 90% higher.
The company said tenants are spending more time evaluating properties and are increasingly focused on well-maintained homes offered at competitive prices.
Abu Dhabi rules
The webinar also highlighted recent regulatory changes in Abu Dhabi.
From June 2, 2026, the Abu Dhabi Real Estate Centre introduced a 0% cap on rental increases across residential, commercial and industrial properties through the Tawtheeq system. The previous cap was 5%.
Landlords can also now conduct tenant credit checks directly through the UAE Pass app, replacing the previous tenant-led process.
Summer outlook
betterhomes said the summer period could offer opportunities for buyers ahead of an expected increase in market activity later in the year.
Harding said: “Sellers’ expectations will move the moment there is certainty in the region. The window to negotiate is now, and when it closes, it will probably be too late.”
tanvir@dubainewsweek.com
