SARA ALZAABI (ABU DHABI)

The UAE residential market continues to demonstrate strong resilience, with nearly 45% of respondents indicating an intention to purchase property within the next 12 months, according to Savills Middle East’s latest UAE Residential Investor Sentiment Survey, conducted among a cross-section of market participants including investors, end-users, landlords, tenants and prospective residents.

While buyers are becoming more selective and cautious amid global uncertainty, the sector continues to show strong underlying confidence.

Buying activity remains robust, with 37.1% currently exploring opportunities, 14.7% already in the final stage of property possession, 7.8% having agreed terms with sellers, and 4.3% under negotiation.

Existing homeowners are also showing little sign of panic selling. More than 60% of respondents said they plan either to hold their investments or purchase additional property over the next six months.

Around 36.3% intend to hold onto their current assets, while 24.9% are looking to expand their portfolios. Only 4.1% indicated plans to sell, highlighting continued confidence in the market’s long-term outlook.

The survey also shows buyers leaning toward ready and secondary-market homes as they prioritise certainty in pricing, delivery timelines, and immediate returns.

Around 60% preferred completed properties, including 36.1% owning ready investment units and 24.2% living in ready owner-occupied homes, compared with 23.2% invested in off-plan projects. The report highlights a market increasingly driven by residents and long-term demand rather than short-term speculation.

Resident expatriates made up 68.9% of survey participants, followed by non-resident investors at 18.1%, and UAE nationals at 7.3%. Renters accounting for 38.9% of respondents and owner-occupiers followed closely behind at 38.3%, while investors represented 17.6% of the market.

Despite a more cautious mood globally, demand remains firmly in place. Apartments continue to attract strong interest because of affordability and investment appeal, while villas and townhouses remain supported by steady end-user demand.
 
Investment continues to drive much of the market’s momentum. More than half of respondents (52.1%) said their primary reason for entering the market is to acquire investment assets. Another 17.1% are looking to enter the housing market, while 14.5% are seeking second homes, pointing to confidence that extends beyond short-term market cycles.

Even though some of the respondents expect prices to either stabilise or soften over the next year, Savills notes that several residential segments, particularly premium properties and villas, continue to show resilience.