Dubai Property Buyers Hunt Distressed Deals, But Sellers Hold Firm On Prices

2026-03-16 07:42:40

(MENAFN- Khaleej Times) [Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran war for the latest regional developments.]

There have been enquiries from property buyers looking for distressed assets, but the majority of owners in Dubai are not selling their properties below pre-regional conflict levels.

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Industry executives said some investors who entered the market before 2022 have seen their returns double or even triple. As a result, some owners are choosing to sell in order to capitalise on the significant profits made within just a few years.

“We are receiving enquiries from buyers looking for well-priced deals. But we're not seeing a significant number of sellers accepting prices below pre-conflict levels. Where pressure does exist, it's not the conflict itself driving it. The conflict may be the trigger, but the underlying reason varies seller by seller. A small number took on more exposure than their capacity allowed, and now they feel that pressure. That's a personal financial situation, not a market trend,” said Firas Al Msaddi, CEO of fäm Properties.

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“Then there's a completely different category that people tend to overlook: investors who entered between 2020 and 2022 and have seen their properties appreciate 200 per cent, sometimes 300 per cent. Some of them are now motivated to take profit – not because they're distressed, but because the numbers make sense. Even if they accept a slight discount off peak, they're still walking away with exceptional returns. You cannot apply a blanket 'distressed seller' label to that. It's a fundamentally different dynamic, and understanding the distinction matters,” he added.

Industry insiders say there has been some softening in the market due to the ongoing regional military conflict involving the US, Israel and Iran. However, they believe the market will bounce back stronger, similar to previous cycles seen during the 2009 financial crisis and the Covid-19 pandemic.

Farooq Syed, CEO of Springfield Properties, said they have been receiving enquiries from people looking to sell properties, but there are also a significant number of buyers in the market seeking attractive opportunities.

“Since the escalation of the current geopolitical tensions, we have started receiving calls from seasoned and well-capitalised investors looking for attractive deals. They are not speculative buyers, but experienced market participants who understand cycles. Their focus is clear – identify opportunities where sellers may act emotionally rather than strategically,” Syed told Khaleej Times.

The majority are holding

Historically, he noted that short-term uncertainty often creates selective buying windows, and sophisticated investors recognise this early.

“Contrary to panic narratives, liquidity in Dubai remains strong. We are seeing Emirati buyers, long-term GCC investors, and established resident expats with strong cash positions who want to take advantage of good deals at the moment,” Syed said, adding that they're looking at units where owners may struggle with payment plans and at investors who are over-leveraged.

“There is capital on the sidelines ready to deploy.”

Firas Al Msaddi noted that the majority of sellers are holding firm – and with good reason.

“Every property owner in Dubai who bought during a period of uncertainty has experienced significant upside. That's not a talking point, that's the lived experience of this market.”

Unlike 2009, when the global financial crisis hit the Dubai property market, he stressed that today's buyers are long-term, cash-rich, and committed.

“It is completely normal for people to pause until clarity returns. But a pause is not a collapse. And once this phase closes, I expect sellers' tone to shift upward, not down,” he added.