As property prices in the UAE continue to rise, certain buyers are feeling the pinch, as expert analyses indicate a trend towards more cautious purchasing behaviors. The steady increase has shifted the focus of many prospective homeowners, compelling them to reassess their housing options.

Shifting Buying Patterns in the UAE

According to Matthew Green, the head of research at CBRE Mena, the ongoing surge in real estate prices has prompted many potential homeowners to look beyond prime areas. “A significant number of buyers are now considering secondary and tertiary locations, especially along the Al Qudra corridor and E611,” he comments, referring to the heightened prices in sought-after neighborhoods like Downtown Dubai and Palm Jumeirah. This shift highlights how economic realities are reshaping where people choose to live.

John Lyons from Espace Real Estate notes that mid-income professionals are becoming more deliberative in their decision-making process. Many, particularly first-time buyers, are evaluating the merits of renting versus buying as prices continue to escalate. Nevertheless, Lyons assures that this doesn’t signal widespread market withdrawals. Instead, buyers are becoming increasingly pragmatic, prioritizing long-term lifestyle compatibility over immediate market downturns.

Interestingly, many buyers who held off during periods of price adjustments have now found themselves priced out of their preferred locations. In response, buyers are shifting their priorities towards securing properties that align with their long-term plans rather than simply waiting for a price drop. Lyons emphasizes that this trend reflects a newfound pragmatism among potential homeowners.

Market Dynamics and Future Prospects

Recent data from CBRE reveals that property prices in Dubai have experienced a nearly 13% surge over the past year, with quarterly increases of about 3%. While the pace of price growth is diminishing compared to earlier years, supply remains insufficient to completely balance demand dynamics, with around 35,000 units completed in 2025. However, increased delivery rates anticipated for 2026 and 2027, with projections exceeding 70,000 units annually, may offer some relief from price hikes.

According to property consultancy ValuStrat, Dubai’s residential market is expected to enter a downturn in 2026. Still, this slowdown should be characterized more by gradual moderation than a steep correction. Strong population growth and sustained demand among end-users should underpin the market’s performance, even as affordability constraints and an influx of new supply might limit price surges.

Lyons points out that a sweeping price correction across Dubai is unlikely. While certain segments may face tighter liquidity—especially off-plan projects with speculative pricing—other areas remain robust. Notably, the secondary market for villas and townhouses is still undersupplied, driven by end-user families with a long-term outlook.

Diverse Buyer Demographics and Future Trends

The buyer demographic within the UAE’s real estate market is increasingly diverse, encompassing a mix of resident expatriates, international investors, and Emiratis, typically aged between their early thirties and mid-forties. The influx of international buyers, attracted by long-term residency options such as the Golden Visa, adds layers of complexity to market dynamics. It also helps stabilize demand in various property segments.

Syed notes that resident expatriates are becoming a larger portion of end-user demand, bolstered by favorable policies promoting first-time homeownership and enhanced mortgage access. Despite facing rising costs, many within this demographic are identifying opportunities for ownership.

Emiratis are also actively participating in the market, utilizing private purchases and community housing programs. This collective participation indicates a shift towards a more resilient and end-user-driven market compared to previous cycles. Alongside this trend, the average buyer today is more focused on long-term benefits, aligning their property choices with broader wealth strategies rather than short-term speculation.

As the UAE real estate landscape evolves, buyers will need to navigate these new dynamics carefully. Understanding the current state of the market enables potential homeowners to make informed decisions that align with their financial goals and lifestyle aspirations.