Why are most of Dubai’s off-plan property owners holding onto their assets?

Dubai is witnessing a slower resale of off-plan properties as owners are holding onto their assets.

Despite the market softening, industry executives said property owners are holding on to their assets, awaiting their desired returns, which remain higher than those in other markets.

Zacky Sajjad, director and head of business development and client relations at Cavendish Maxwell, said around 10 to 20 per cent of people are reselling their off-plan units.

This means the majority of the people are holding onto their off-plan assets.

“It could be the fact that people aren’t getting the returns that they hope for, as many of us here are trying to get that 20-25 per cent deposit together to buy a home, which is challenging… Nobody likes speculation in the market because it usually leads to some sort of correction,” he said during the launch of Cavendish Maxwell’s 2025 Dubai Residential Market Performance Report on Tuesday.

“I can’t comment on what individuals are doing. What I will say is we are seeing that slower pace of resales, that’s definitely happening in the off-plan.”

Have prices peaked?

According to data from real estate advisory and property consultancy Cavendish Maxwell, the emirate’s residential property market hit new all-time records in 2025, with more than 200,000 transactions totalling Dh541.5 billion. Sales rose by almost 19 per cent when compared to 2024, with transaction values up 27 per cent.

The off-plan segment continued to dominate sales activity, accounting for 73 per cent of sales last year, up from 69 per cent in 2024. Off-plan secured Dh395.7 billion worth of sales – 32 per cent higher than the previous year.

Around 40,400 new residential units were delivered during 2025, against earlier predictions of 82,600. Some 110,500 units are forecast to be delivered this year, but, given historical completion rates, this figure may range from 33,000 to 50,000, according to the report.

Zacky Sajjad stressed that real estate is a long-term investment.

He noted that multiple dynamics are at play that support the local property market, including geopolitical tensions attracting people to Dubai, a record number of tourists and visitors, and a dramatic increase in population because the city is a stable and safe place.

He noted that the Property Monitor Index, which looks at 41 freehold communities across Dubai, showed three months of very marginal decline as the market softens.

“When we look at it from a year-on-year perspective, we’re still quite healthy. This is just a sign of cooling off. It could well be because we have an early Ramadan season, and, generally, things slow down in the build-up to the holy month. What we’ve seen over the last five years is  unique – five years of solid upward trajectory. But that is not sustainable. There will inevitably be a softening. Perhaps this is that softening, but let’s see,” he said.

Ronan Arthur, director, head of residential valuation at Cavendish Maxwell, said after another record-breaking year, Dubai’s residential market is beginning to show signs of normalisation, with rising supply and slowing price growth pointing towards more balanced conditions in 2026. “Performance will increasingly depend on absorption rates, buyer sentiment and the market’s ability to digest upcoming completions,” he said.

This article was originally published in Khaleej Times.