Dubai’s property market is showing early signs of stabilisation approximately 67 days into the regional conflict, according to betterhomes’ latest monthly market webinar held on Thursday (May 7).

During the session, the leadership team presented the first comparative analysis of pre- and post-conflict market performance, alongside insights on three recent government policy developments.

April transactions increased just under 2% month-on-month. Off-plan activity accounted for 76% of all deals, up 7% compared to March. While secondary market volumes remain softer, listing supply has not significantly increased, indicating that sellers are not rushing to exit the market.

In the leasing segment, tenant enquiries rose by nearly 40% in April. Rental prices softened, with approximately 70% of properties seeing reductions, averaging just under 10%. This adjustment may help improve affordability for residents, the majority of whom continue to rent.

Three policy developments were highlighted as potential market drivers. The removal of the AED750,000 investor visa price cap widens eligibility to any property purchase. The proposed Gold Line, a $9 billion metro project connecting 15 districts by 2032, mirrors infrastructure announcements elsewhere that have historically driven 8 to 11% property price appreciation in affected corridors. In addition, the UAE’s exit from OPEC was noted as a move that may provide greater flexibility in shaping its economic strategy.

The webinar also took on the Dubai versus London investment question, noting that entry costs, taxes, and landlord regulations in the UK have made London a materially less attractive proposition than a decade ago, while institutional capital from Europe is now actively circling the UAE. 

For off-plan buyers reconsidering their position, betterhomes advised that contracts remain legally binding. Buyers are encouraged to seek early advice and review SPA long-stop date provisions to fully understand their options. - TradeArabia News Service