UAE buyer-seller price gap narrows as house-hunters opt to rent for now

The gap between what UAE home buyers expect to pay and what sellers are asking has narrowed further as property markets continue to gain momentum after the slowdown due to the regional conflict. According to the latest analysis from property portal Property Finder, the share of buyers expecting prices to fall eased to 63 per cent in May, down from a peak of more than 70 per cent immediately after the onset of the conflict. This marked the second consecutive monthly decline, even as sellers' advertised prices remained close to pre-conflict levels.

Before the conflict, buyer sentiment in the UAE was fairly evenly divided. Property Finder’s January-February consumer sentiment poll found buyers split almost equally: 36 per cent expected prices to fall, 35 per cent expected a rise, and 29 per cent anticipated prices holding steady. Once the conflict began, the majority of buyers shifted towards expecting price reductions and held off on purchases in anticipation of discounts. That expectation of a decline has eased every month since, reaching 63 per cent in May – a clear, if gradual, adjustment.

Sellers, meanwhile, have moved only marginally. Property Finder’s proprietary listing price index shows advertised asking prices sitting roughly two per cent below pre-conflict levels in May, compared with about one per cent below in April. With sellers largely holding firm, the gap between the two sides is closing, albeit slowly. Cherif Sleiman, chief revenue officer at Property Finder, described this as the market working through price discovery – the process by which buyers and sellers gradually align on what homes are worth.

Demand has not declined so much as redirected, with more people choosing to rent now rather than wait for prices to settle further. New rental contracts in May were just 20 per cent below pre-conflict levels, a sharp recovery from 32 per cent below in March. Nearly half of all rental activity in May – 47 per cent – consisted of people actively moving into new homes rather than simply renewing existing leases, up from 41 per cent in March, a sign that points to renewed momentum in the rental market.

Industry experts note that the shift reflects a strategic, rather than panicked, consumer base. Alessia Sheglova, CEO of Dacha Real Estate, said buyers are negotiating harder and are more data-driven, but they also realize that well-priced properties are not being heavily discounted. Sam McCone, managing partner of McCone Properties, added that while buyers initially made lowball offers, that approach is fading as serious buyers understand they can get a good deal but not at ridiculously low prices. Sellers who price sensibly are transacting, and stalled deals are starting to close as both sides accept where value actually sits.