Will real estate prices in Dubai fall? The founder of Emaar gives a bold answer
Despite escalating geopolitical tensions in the Middle East and concerns about economic stability amid the US-Israel war against Iran, Dubai’s real estate sector remains resilient, according to leading industry voices.
Mohamed Alabbar, founder of Emaar Properties, recently said that Dubai’s real estate market has “nothing to fear” even as the region navigates a complex geopolitical environment and prepares for an increased supply of new housing.
Dubai real estate market confidence amid uncertainty over war between Iran, US and Israel
These comments come at a time when regional tensions linked to the conflict between Iran, the United States, and Israel have raised questions about investor confidence in Gulf markets. Financial markets in the UAE have already witnessed volatility in the wake of regional security concerns, while analysts have warned that geopolitical risks could test Dubai’s reputation as a safe investment hub.
However, Alabbar remains optimistic about the long-term outlook for the emirate’s real estate sector. He said that the UAE’s stable leadership, long-term planning, and strong economic fundamentals have historically helped the country overcome global and regional shocks. He says these factors continue to make Dubai a safe haven for international capital and real estate investors.
The high supply of properties in Dubai is considered healthy for the market amid the war between Iran, the US and Israel
Dubai is also preparing for a huge wave of new property supply in 2026 and 2027, a development that some analysts fear will lead to a decline in prices.
However, Alabbar believes the additional inventory will actually benefit the market by stabilizing price growth and ensuring sustainable expansion. Rather than a threat, he sees the upcoming offer as a natural part of the ownership cycle. According to the developer, long-term market strength depends on maintaining balanced growth rather than short-term price increases.
Emaar’s recent financial results reinforce positive expectations.
The developer announced record property sales and strong revenue growth, driven by continued demand for residential projects and luxury developments across Dubai. The city’s luxury real estate sector also continued to attract wealthy international buyers. Even during regional tensions, high-end real estate transactions reached record levels, including sales of ultra-luxury apartments exceeding hundreds of millions of dirhams.
Global investors are still attracted to Dubai despite the war between Iran, the United States and Israel
Dubai’s appeal lies in its combination of tax advantages, modern infrastructure, and investor-friendly policies, which continue to attract global investors looking for stable returns. Analysts point out that the city has succeeded in transforming itself into one of the most dynamic real estate centers in the world over the past two decades.However, the sector is not completely immune to risks. Some experts warn that prolonged geopolitical instability or reduced foreign investment could slow momentum in the coming years.
For industry leaders like Alabbar, the key message is that Dubai’s property market is designed for long-term resilience rather than short-term speculation.
With strong demand, large-scale infrastructure projects and a steady influx of international investors, the emirate’s real estate sector appears poised to remain the cornerstone of the UAE’s economic growth. As Dubai continues to expand its skyline with ambitious development projects, from luxury waterfront communities to iconic landmarks, the city’s real estate market is once again proving its ability to withstand global uncertainty and emerge stronger.(Disclaimer: Recommendations, opinions regarding stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times Of India)