Dubai’s real estate market is experiencing a significant behavioral shift as the majority of off-plan property investors are choosing to retain their assets rather than pursue immediate resale opportunities. This trend emerges despite the market showing signs of normalization following five years of unprecedented growth.
According to Cavendish Maxwell’s comprehensive 2025 Dubai Residential Market Performance Report, the emirate’s property sector achieved historic milestones with over 200,000 transactions totaling Dh541.5 billion. Sales volume increased by 19% compared to 2024, while transaction values surged by 27%. The off-plan segment continued to dominate, accounting for 73% of all sales activity and generating Dh395.7 billion in value—a 32% year-on-year increase.
Market experts identify multiple factors influencing investor behavior. Zacky Sajjad, Director and Head of Business Development at Cavendish Maxwell, notes that only 10-20% of off-plan unit owners are currently pursuing resales. This retention strategy appears driven by investors awaiting optimal returns that continue to outperform many global markets, despite recent modest price adjustments.
The market’s underlying fundamentals remain robust. Geopolitical stability continues to attract international buyers, while record tourism numbers and population growth sustain demand. The Property Monitor Index, tracking 41 freehold communities, indicates three consecutive months of marginal decline, suggesting a controlled cooling period rather than a sharp correction.
Supply dynamics also play a crucial role. While 110,500 new units are forecast for delivery in 2026, historical completion rates suggest actual deliveries may range between 33,000-50,000 units—a significant reduction from initial projections that could support property values.
Ronan Arthur, Head of Residential Valuation at Cavendish Maxwell, characterizes the current phase as a transition toward market normalization. ‘After another record-breaking year, rising supply and slowing price growth indicate more balanced conditions emerging in 2026,’ Arthur observed. ‘Future performance will increasingly depend on absorption rates, buyer sentiment, and the market’s ability to digest upcoming completions.’
This holding pattern among investors reflects a maturation of Dubai’s property market, with participants demonstrating increased sophistication and long-term perspective compared to previous market cycles.