Mohamed Alabbar: Dubai Property Market Remains Strong Despite Global Tensions

Dubai’s real estate market continues to demonstrate remarkable resilience despite rising geopolitical tensions and global uncertainty, according to Mohamed Alabbar, founder of Emaar Properties.

Speaking in a recent interview with CNBC, Alabbar emphasized that Dubai’s long-term development strategy, consistent policies, and stable leadership have created a foundation that continues to attract global investment and reinforce the United Arab Emirates as a leading international hub for business and capital.

According to Alabbar, the emirate’s success is not accidental but the result of decades of deliberate planning and visionary leadership.

“It’s the global business hub, and its success, its limelight, its reflection of what life should be and what success should be, what prosperity should be — what positive you should be — is this place,” he said.

Confidence Built Over Decades

Alabbar acknowledged that during periods of geopolitical tension, speculation and fear can spread rapidly on social media. However, he stressed that the UAE’s long-standing track record tells a much stronger and more reassuring story.

He pointed to the consistency of government policies, economic stability, and forward-looking leadership as the key pillars that continue to sustain investor confidence.

“If you were to look and study the trajectory of UAE policies, you will see consistency, sustainability, wisdom, and stability,” Alabbar explained.

He added that the country’s leadership has spent more than four decades building a system designed to deliver prosperity, security, and opportunity for both residents and global investors.

“You couldn’t build this in one year or two years. It took over 40 years for the leadership to establish this.”

Recent regional developments, he said, have only reinforced confidence in the country’s security and preparedness.

“We know this country has great infrastructure, strong business regulation, healthcare, education, tourism — and the past days have proven that we are really safe.”

Capital Continues to Flow Into Dubai

Despite speculation that global capital might begin leaving the UAE after major global crises such as the pandemic or geopolitical conflicts, Alabbar believes the opposite is happening.

He pointed to the performance of Dubai’s real estate sector as clear evidence of sustained investor demand.

According to Alabbar, real estate sales experienced dramatic growth in recent years, including:

70% growth in 2023
40% growth in 2024
Another 40% growth in 2025

Such expansion, he noted, cannot occur without deep and long-standing confidence in the system.

“That volume of increase does not come out of the blue. Success doesn’t happen by luck. It comes from years of great policies, stability, fairness, and confidence in this country.”

He also highlighted how the UAE’s effective management of the COVID-19 pandemic further strengthened international trust in the nation’s governance and long-term prospects.

“Policies dealing with COVID pushed tremendous belief in this country and what the future holds.”

For sophisticated global investors, the UAE’s stable leadership and strong institutional framework remain highly attractive.

“Smart capital understands that a country like this — with these principles and safety — delivers stability,” Alabbar said.

Demand Remains Strong in the Property Market

While some analysts have raised concerns about a potential slowdown in Dubai’s property sector amid global tensions, Alabbar said his own experience in the market suggests demand remains robust.

In fact, he recently encountered the strength of the market firsthand while searching for an apartment overlooking the sea.

“I’m looking for one building, one apartment overlooking the sea that I didn’t buy in, and the past two days I’ve been looking and it seems like nobody wants to budge. Nobody wants to give a discount.”

This, he explained, reflects a confident market where sellers remain firm and demand continues to outpace expectations.

“No, I’m not concerned at all.”

Although consumer sentiment can temporarily weaken during uncertain times, he believes Dubai’s policies and governance structure restore confidence quickly.

Rejecting Predictions of a Major Market Correction

Some analysts have warned that Dubai’s property market could face a correction as new supply enters the market. Fitch Ratings recently suggested that prices could decline by as much as 15 percent.

Alabbar strongly disagrees with that assessment.

Drawing on his experience across multiple industries—including real estate, banking, and retail—he said the underlying fundamentals of the market remain solid.

“I know my business well. I know the banking system, the business environment. The banking system is strict, disciplined, and the government policies are getting better and better.”

For that reason, he considers predictions of a significant price correction unrealistic.

“The way I look at my business and the data I see, I think it’s very unrealistic.”

New Supply Could Strengthen the Market

Dubai is preparing for a significant wave of new property supply expected to enter the market in 2026 and 2027. Rather than viewing this as a risk, Alabbar believes it could benefit the long-term health of the sector.

Additional inventory could help prevent excessive price inflation and maintain Dubai’s global competitiveness.

“The supply coming in 2026 and 2027 will be good for the market. We are not here for the short run. We are here for a long time to do business.”

He emphasized that sustainable growth—not rapid price spikes—is the best outcome for both investors and residents.

“Jacking up prices too high doesn’t benefit anybody.”

Instead, Alabbar said he prefers a steady and predictable market where property values grow gradually by around 5 to 6 percent annually.

Balancing Growth and Affordability

Alabbar also highlighted the broader economic implications of rising property prices. Real estate costs, he explained, play a major role in inflation.

“Real estate values contribute to almost 50% or 52% of inflation.”

For Dubai to maintain its global competitiveness, housing costs must remain manageable for both investors and professionals relocating to the city.

“We don’t want rents to be too high. We don’t want property prices to be too high. That’s against economic progress.”

Maintaining a balanced market ensures that Dubai remains attractive not only for capital but also for the talent that drives the economy.

A Long-Term Vision for Stability

Ultimately, Alabbar said the goal for Dubai’s property market should be stability and long-term sustainability, rather than short-term price surges.

Developers are already achieving strong returns at current price levels, he noted, making aggressive price increases unnecessary.

“Developers are making enough money with these prices. We should not shoot too high.”

By maintaining balanced growth and carefully managing supply, Dubai can continue strengthening its position as one of the world’s most desirable places to live, work, and invest.