Dubai Real Estate Defies Regional Tensions: 100-Million-Dollar Deals Still Happening

(MENAFN- Khaleej Times) Dubai’s property sector shows strength with high-value deals still going ahead, even as some buyers take a“wait-and-see” approach. Is investor confidence unwavering?

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International investors, who make up a significant share of UAE property buyers, appear to be monitoring the situation more closely than local residents, Crompton said.

A second broker, who requested anonymity, said activity in the market remains largely stable, with developers continuing to move forward with new projects despite the regional tensions.

“There’s a project scheduled to launch next week and the developers are going ahead as planned,” the broker said.“They are not postponing launches because of the current situation.”

The broker added that the UAE’s property market - particularly in Abu Dhabi - is underpinned by a large base of long-term residents and families.

“Abu Dhabi is a very family-oriented market. A large proportion of residents here are families who have been in the UAE for many years. They consider this their home and they are planning long-term - with schools, jobs and their families here - so they still want to buy property.”

However, some international investors have become more cautious.

“There is a small percentage of people who are afraid, mainly foreigners from markets like the UK, the US and Germany,” the broker said.

At the same time, the broker noted that periods of uncertainty can also create opportunities for investors with available cash.

“Some investors actually see this as a good opportunity to reinvest their money. When a few sellers become nervous and want to exit quickly, they may reduce prices, and those units tend to get snapped up quickly.”

Certain segments of the market may also be more sensitive to shifts in sentiment. Properties used for short-term rentals, for example, are closely linked to tourism flows, while ready units in the secondary market may experience more price negotiations than newly launched developments.

“In the secondary market, some owners have reduced their prices slightly at the start of this week,” the broker said.“But these situations are relatively limited and usually involve sellers who want to leave quickly.”

At the same time, investors with liquidity are using these opportunities to negotiate deals.

“For example, if a property’s market value is around Dh1.3 million and the seller wants to exit urgently, an investor with cash may offer Dh1 million for a quick transaction,” the broker explained.“They may then hold the unit for several months until the situation stabilises and sell it again closer to market value.”

Despite such isolated transactions, the broker stressed that the broader market remains stable and that most property owners are not rushing to sell.

“Real estate is a slow and stable market. It doesn’t react like the stock market where prices can suddenly fall by 10 per cent in a day,” the broker said.

“For significant price changes to happen, a large number of people would need to move in the same direction. Right now, the majority still believe in the UAE and its government, so the market remains stable.”

Developers highlight stability

Developers, however, have emphasised that operations across the sector remain stable.

In a statement on Thursday, Aldar Properties said all its residential communities, retail destinations, commercial offices, hotels, schools and development sites across the UAE continue to operate without interruption.

The company also highlighted its strong financial position, with more than Dh30 billion in available liquidity, including Dh14.2 billion in free cash and Dh16.4 billion in undrawn bank facilities.

Aldar said its business continuity and risk management frameworks are being applied across operations to ensure uninterrupted services for residents, tenants and investors.

Market participants also note that developers have not adjusted launch pricing so far.

“They are still launching projects at the same prices that were planned before the current situation,” the anonymous broker said.

In some cases, developers are instead offering more flexible payment plans to maintain investor confidence.

“Developers sometimes adjust payment structures during uncertain periods,” the broker said.“Instead of a 50-50 payment plan, they might offer something like 35-65 or 40-60, which reduces the upfront amount buyers need to pay and makes it easier for investors to enter the market.”

Strong economic fundamentals

Despite short-term caution among some buyers, Crompton said the broader economic backdrop supporting the UAE’s property market remains robust.

The real estate sector has been buoyed in recent years by strong population growth, international investment, and economic expansion in both Abu Dhabi and Dubai.

Industry professionals also point to continued long-term demand across key residential hubs such as Reem Island, Yas Island and Saadiyat Island, where new infrastructure and lifestyle developments are expected to support property values over time.

“There is still strong belief in the long-term prospects of the market,” the second broker said.“Real estate in the UAE has historically moved upward over the long term, even if there are short-term fluctuations.”

Crompton echoed that view.

“The economic fundamentals are very strong,” he said.

“Capital hates uncertainty more than anything. The sooner there is long-term clarity, the sooner investors will feel comfortable committing again.”

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