News: Dubai Buyers Turn Selective Amid West Asia Tensions: Savills-17-08-2026

The US-Iran war has brought short-term caution to the Middle East property market, with buyers taking longer to decide and becoming more selective and price-conscious, Andrew Cummings, Head of Residential Agency at Savills Middle East, told Hindustan Times Real Estate.

Cummings said he would be careful about attributing softer activity solely to regional tensions. Transactions have moderated from the exceptionally strong levels seen at the start of the year across both off-plan and secondary markets, and mortgage-backed activity has softened as purchasers focus on value, quality and location. He described the phase as "market normalisation rather than a structural weakening in demand".

The Savills Residential Investor Sentiment Survey found demand deferred, not lost. Nearly 45% of respondents intend to buy within the next 12 months and 32% are undecided. About 60% prefer ready homes against 23% who favour off-plan projects, reflecting a wish for certainty on delivery, pricing and immediate occupancy or rental returns. Investment is the main motive for 52.1% of respondents, and location, connectivity, product quality and developer track record matter more than before.

Savills has no nationality-specific data on Indian HNIs and UHNWIs, but Cummings said international buyers show similar behaviour: slower decisions, more selectivity and a priority on certainty, value and long-term quality.

The prime segment has held up. Dubai recorded 2,064 transactions for homes priced above AED 10 million in Q1 2026, though activity eased from 976 in January to 656 in February and 432 in March. Villas made up 76% of these deals. Off-plan properties accounted for 72% of overall transactions in the quarter and 79% of prime transactions above AED 10 million. The Oasis, Dubai Hills Estate and Jumeirah Golf Estates were among the key locations, Cummings said.

Around 90,000 residential units are expected to be delivered over the coming months, giving buyers far more choice. Cummings said older secondary apartments could come under greater pressure, particularly where newer developments offer better amenities, modern specifications and attractive payment plans.

He added that successful launches in both Dubai and Abu Dhabi show buyers will still transact when pricing, quality and location meet expectations, and that villas and well-located prime assets are likely to stay relatively more resilient.