The real estate landscape in the UAE has seen notable shifts over the past five years, with property values on a steady incline. This trend has left many cost-sensitive buyers struggling to navigate the market, leading to a redefinition of their home aspirations.

Adapting to Rising Prices

Matthew Green, the head of research at CBRE Mena, emphasizes how the rising property values have compelled many prospective buyers to reconsider their ideal locations. For example, buyers now find themselves looking at secondary and tertiary areas like the Al Qudra corridor and even further out as they adjust to the inflated prices in sought-after regions, such as Downtown Dubai and Palm Jumeirah. This shift reflects a more practical approach to finding the right property that aligns with their lifestyle rather than attempting to time the market.

John Lyons, managing director at Espace Real Estate, notes that many mid-income professionals, particularly first-time buyers, are exhibiting more caution. They are weighing the options of renting versus buying carefully. However, this caution does not point toward a widespread retreat from the market but rather a more deliberate decision-making process among buyers. Many who anticipated a price drop have instead found themselves priced out of their desired neighborhoods, pushing them to seek properties that better fit within their evolving financial situations.

Factors Influencing Buyer Participation

Farooq Syed, CEO of Springfield Properties, points out that increasing rents and improved access to off-plan housing are encouraging more mid-income professionals to invest in property rather than postpone ownership. Enhanced mortgage availability and flexible payment plans are making it easier for salaried individuals to secure homes, especially in light of rising monthly rent costs.

Recent data highlights that property prices in Dubai have surged close to 13% over the past year, signaling consistent demand despite some fluctuations in supply levels. Although the rate of price growth has slowed compared to peaks from previous years, the anticipated increase in new residential units—over 70,000 expected in 2026 and 2027—could stabilize prices somewhat. Still, strong demand driven by population growth and end-user interest is likely to maintain a balanced growth trajectory.

The Market’s Diverse Customer Base

The current buyer demographic in the UAE’s real estate market is notably varied, encompassing both resident expatriates and international investors. Many purchasers fall between their early thirties and mid-forties, attracted by the UAE’s favorable long-term residency options like the Golden Visa. This diverse buyer base is increasingly skewed towards end-users rather than speculative investors, with many opting for homes as part of a broader wealth-building strategy.

Lyons further notes that demand from high-earning expatriates and dual-income families has increased significantly. This shift in buyer intent is reflected in a market that favors long-term occupancy rather than short-term flips. While there remains a segment of speculative investors, they constitute a smaller portion of the overall market.

Emerging Trends in the Northern Emirates

High housing costs in central Dubai have prompted some buyers to explore opportunities in the Northern Emirates. Many seek lower rent prices and better housing affordability in emerging areas on the outskirts of Dubai. Despite the rising living costs across the UAE, supply is predicted to increase, which may alleviate some financial pressure in the housing market.

Locations like Sharjah and Ajman appeal to commuters seeking cost-effective housing, while Ras Al Khaimah attracts those looking for spacious properties and a lifestyle change. Nevertheless, Dubai remains the preferred choice for many because of its robust job market, education options, and overall lifestyle offerings. As a result, many residents adjust their locations or property types to remain within the emirate rather than moving entirely.