Mohamed Alabbar says Dubai property market remains strong despite tensions

Dubai: Dubai’s property market remains resilient despite rising geopolitical tensions and global uncertainty, according to Mohamed Alabbar, founder of Emaar Properties, who said investor confidence in the emirate continues to strengthen after years of consistent policy and economic stability.

Speaking to CNBC, Alabbar said Dubai’s long-term development strategy and stable leadership have created a foundation that continues to attract capital and reinforce the UAE’s position as a global hub for business and investment.

Stay updated: Get the latest faster by downloading the Gulf News app - it's completely free. Click here for Apple or here for Android. You can also find it on the Huawei AppGallery.

“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,” Alabbar said.

He added that attempts to undermine that success will ultimately fail.

“So I think it's only natural that people who basically hate life and people who have no respect for progress, they have no respect for good quality of life, they'll probably feel that, you know, this is probably one of their best targets, but thank God that won't happen.”

Alabbar acknowledged that social media speculation can amplify fears during periods of geopolitical tension but argued that the UAE’s track record tells a different story.

“Well, unfortunately, sometimes social media naturally takes its own direction and its own toll in any situation,” he said. "What I want to tell you is that if you were to look and study the trajectory of UAE policies, you will see consistency, you will see sustainability, you will see wisdom, you will see stability.”

According to Alabbar, the UAE’s leadership has spent decades building a system designed to deliver prosperity and stability for residents and investors.

“That you couldn't build this over one year, two years. It took us over 40 years for the leadership to establish this,” he said.

Recent events have reinforced confidence in the country’s safety, he added.

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

“I promise you what happened will only strengthen what this country is all about.”

Questions have emerged about whether capital that moved to the UAE during global crises such as the pandemic and the conflict in Ukraine could now begin to leave.

Alabbar said current market data suggests the opposite.

“If you were to look at the past two years, just look at our business, the real estate business alone, we had an increase of almost 70% in 2023, we had 40% in 2024, we have another 40% in 2025,” he said.

The scale of that growth reflects confidence built over many years, he added.

“That volume of increase does not come out of the blue and success, it doesn't happen by luck. It's because of years of great policies and stability and confidence and fairness that exists in this country.”

The UAE’s handling of the pandemic also strengthened global confidence in the country.

“Policies of dealing with covid have pushed this tremendous belief in this country and what the future holds,” he said.

Alabbar said sophisticated investors recognise the strength of those fundamentals.

“Smart capital understands that a country like this, with all these principles and stable leadership and the safety that it has shown that it can deliver.”

He added that investors are likely to deepen their commitments rather than pull back.

“People with true capital understand this and they appreciate this and they will double down on investing anyway.”

Concerns about a potential slowdown in the property market have intensified amid rising global tensions.

Alabbar said the current situation has not weakened demand. He pointed to his own recent experience searching for an apartment in Dubai.

“Myself, 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 seemed like nobody want to budge. Nobody want to give a discount,” he said.

That reflects a market where sellers remain confident and demand remains firm. “No, I'm not concerned at all,” Alabbar said.

Consumer confidence may soften temporarily during periods of uncertainty, he added, but the country’s policies tend to restore confidence quickly. “Consumer confidence will be shaken a little bit, but the policies of this country bring your confidence back so fast.”

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 up to 15%. Alabbar said he considers that scenario unlikely.

“I know my business well. I know the banking, I know the business environment, because I operate in multi industries,” he said. “The banking system is so strict, amazing discipline. Government policies are just getting better and better. I have no concerns.”

Asked whether a 15% correction was realistic, Alabbar was direct. “In my opinion, the way I do, the way I look at my business and listen, I look at so much data, I think it's very unrealistic.”

Dubai is preparing for a wave of new property supply expected in 2026 and 2027. Alabbar said that additional inventory could actually benefit the market by preventing prices from rising too quickly.

“I said this a year ago. The supply that's coming in in 2026 and 2027 will be good for the market,” he said. “We are not here for the short run. We are here for a long time to do business.”

A measured pace of price growth is healthier for the city’s long-term development, he added. "Jacking up prices too high doesn't benefit anybody.”

Alabbar said he prefers a market where property prices rise gradually.

“I'm in the mid up market that goes up every year by 5% or 6%.”

Additional supply could ease pressure on housing costs and help maintain Dubai’s competitiveness as a global city. "We don't want rental to be too high. We don't want property prices to be too high. I think it's against economic progress,” he said.

Real estate costs play a significant role in inflation, he added.

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

A balanced market benefits both investors and residents, according to Alabbar.

“We don't also want investors and people who come here for their jobs to really feel that the city is too expensive.”

Alabbar said the goal for Dubai’s property sector should be stability rather than aggressive price increases. Developers are already generating strong returns at current price levels, he noted.

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

Maintaining balanced growth will help sustain Dubai’s appeal as a place to live, work and invest. “I want stability. I want long term,” he said.

A modest adjustment driven by new supply could help ease pressure on housing costs without undermining the broader market. “I think it's stable enough,” Alabbar said. “I want stability and long-term progress for the city.”