Online Property Searches Outpace Pre-Conflict Levels, Signalling Growing Demand Ahead Of Summer
Market activity rebounds faster than expected
Online property searches in Dubai have surpassed pre-conflict levels and now sit 5% above the full-year 2025 baseline, according to data shared at betterhomes’ fourth monthly market webinar, a signal that buyer demand is building even as transaction volumes remain subdued.
betterhomes recorded transaction values up more than 60% month-on-month in May, with volumes holding flat despite Eid shortening the month to roughly three trading weeks. DLD data for the same period showed overall secondary sales volumes down 25%, with apartments down 18% and villas and townhouses down 44%, reflecting the same shortened period rather than a shift in market direction.
Louis Harding, CEO of betterhomes, said: “Things are rebounding a lot quicker than I expected. There is a significant amount of pent-up demand building. Buyers are active online, speaking to mortgage brokers and getting ready to move. We are waiting for a trigger, and when it comes, I expect the market to respond quickly.”
Shift to quality pushes off-plan villa and townhouse values higher
The off-plan segment continued to account for more than 65% of total market volume in May. Transaction volumes were down approximately 45%, again reflecting the shorter month and a significant reduction in new developer launches. Within the segment, villas and townhouses in established communities saw values rise 7-8%, driven by a clear preference for quality stock. Apartment values softened by approximately 26%, consistent with higher supply levels across that category.
Leasing inquiries double against new listings as tenant behaviour shifts
The leasing market saw one of the sharpest supply-demand shifts of the month. Inquiry volumes rose close to 30% while new listings fell, pushing the inquiry-to-listing ratio from 6:1 in April to 12:1 in May. Rental stock on portals is now approximately 70% above pre-conflict levels, with betterhomes’ own rental listings close to 90% up on the same period. Tenants are taking longer to decide and viewing more before committing, with a clear preference for well-maintained, competitively priced properties.
Abu Dhabi freezes rents and tightens tenant screening
The webinar also addressed two significant regulatory changes in Abu Dhabi. Effective 2 June 2026, the Abu Dhabi Real Estate Centre imposed a 0% cap on all rental increases, down from the previous 5% limit, enforced digitally through the Tawtheeq system across residential, commercial and industrial properties. Separately, landlords can now initiate tenant credit checks directly via the UAE Pass app, replacing the previous tenant-elective model.
Summer window identified as critical negotiating opportunity for buyers
With Q4 widely anticipated to bring a seasonal uplift, and the potential for a confidence bounce following any regional resolution, Harding identified the current summer period as a meaningful window for buyers.
“Sellers’ expectations will move the moment there is certainty in the region,” he said. “The window to negotiate is now, and when it closes, it will probably be too late.”
