Dubai’s property market is showing signs of a more cautious and value-driven environment, with buyers and tenants becoming increasingly selective as the market enters what industry experts describe as a key price-discovery phase.
According to insights shared during betterhomes’ June Property Market Updates webinar, three months of market data since the start of the recent regional disruption have provided a clearer picture of changing behaviour among buyers, sellers, landlords and tenants.
While March reflected the market’s immediate reaction to uncertainty, trends recorded in April and May indicate a more consistent shift, with pricing emerging as a major factor influencing transactions across both the sales and rental segments.
Buyer behaviour
In the secondary sales market, buyers remain active but are taking a more measured approach. Rather than rushing into transactions, many are closely monitoring listings and comparing prices before making decisions.
Industry experts say sellers who withdraw properties from the market or continue to seek prices above market expectations could miss opportunities to attract genuine buyers.
“Taking a property off the market does not improve the chance of achieving the right price,” said Louis Harding, CEO at betterhomes. “The market is telling sellers something very clearly: if you want to transact, you need to show value from the asking price, not leave room for future negotiation. Buyers are watching, comparing and waiting.”
Harding noted that the strategy of listing properties at higher prices and expecting to negotiate later appears to be losing effectiveness as buyers focus more on value and affordability.
Rental market
A similar trend is emerging in Dubai’s rental sector, where an increase in available properties is giving tenants more options.
According to betterhomes, the combination of rising rental inventory, fewer active tenant searches and the approaching summer travel period is shifting some negotiating power towards tenants.
“For tenants, there is more choice in the market than there has been in recent periods,” said Rupert Simmonds, Director of Leasing at betterhomes. “Any increase must be in line with the RERA rental calculator, but even where an increase is permitted, landlords should weigh that against the cost of a potential vacancy.”
The company said landlords may need to carefully consider rental increases at renewal time, particularly if retaining existing tenants provides greater stability than risking extended vacancy periods.
The current conditions may also create opportunities for new residents moving to Dubai, as landlords look to secure longer-term tenants ahead of the quieter summer months.
Pricing focus
According to betterhomes, the next stage of the market is likely to be defined by realistic pricing and faster responses to changing demand patterns.
“The market has not disappeared,” Harding said. “It has become more discerning. Sellers and landlords who show value early will stay visible. Those waiting for the market to meet inflated expectations risk being ignored.”
The findings suggest that while demand remains present across Dubai’s property market, buyers and tenants are increasingly prioritising value, making competitive pricing a key factor for sellers and landlords in the months ahead.
tanvir@dubainewsweek.com
