UAE Living Market Dynamics, Q1 2026

Whilst the year started strong, transaction activity was impacted with the onset of the Iran conflict. At the height of the conflict's initial impact, weekly transaction values declined by nearly 50% compared to pre-conflict weekly averages, although this decline has since moderated significantly.

Considering the large quantum of future stock in the pipeline, the drop in demand poses increased risk to the supply-demand equilibrium. Proactive strategic adjustments by developers and market participants will be key in effectively mitigating risks.

Cash discounts, bulk purchase deals, and value-added promotions are being seen in the market, whilst being constrained to specific market segments, as some developers seek to maintain sales momentum.