Emaar’s founder, Mohamed Alabbar, has recently refuted media speculation about a potential 15% decline in property prices in Dubai, claiming such predictions are “very unrealistic.” He emphasized that although consumer confidence might experience temporary fluctuations, government policies are capable of swiftly restoring that confidence and ensuring market stability.

Strong Demand Amid Market Fluctuations

In light of ongoing geopolitical tensions, including the conflicts involving the U.S., Israel, and Iran, Alabbar noted that demand in Dubai’s real estate market remains robust. He pointed out that sellers are maintaining their asking prices, demonstrating the market’s resilience against external pressures. During a CNBC interview, Alabbar insisted that the predicted influx of new properties in 2026 and 2027 would not exacerbate price drops but could rather lead to a healthier long-term market ecosystem.

“We are witnessing a phase of significant demand,” he stated, adding that the anticipated property supply in the next few years will help moderate price escalation while facilitating sustainable growth. Alabbar expressed confidence in the fundamentals of the market, insisting that while there may be a slight dip in consumer confidence during uncertain times, it typically rebounds quickly.

Future Supply and Its Market Implications

The founder’s insights also come against reports from Fitch Ratings, which had previously suggested that Dubai’s property prices might see a double-digit decline by late 2025. However, Alabbar argued that the expected delivery of about 210,000 new units would effectively limit any significant price drops, potentially keeping the reductions below 15%. He firmly believes that a cautious approach, focusing on gradual growth rather than drastic price hikes, is essential for maintaining economic health and avoiding volatile market swings.

“Real estate values account for a significant portion of inflation—about 50-52%,” he noted. Thus, ensuring a balanced approach to supply and pricing is imperative for both the economy and the residents of Dubai. He expressed a preference for stable prices rather than extreme fluctuations, which could deter potential investors and new residents.

Developer’s Perspective on Market Prices

Reflecting on the current price levels, Alabbar stated that developers are earning adequately and should not aim for excessively high prices. He advocates for an increase in supply to keep Dubai attractive and affordable for both investors and job seekers. “We don’t want the city to become unaffordable,” he reiterated, emphasizing the need for market stability over speculative price increases.

As Alabbar outlined his vision for the future, he underscored the importance of finding a balance: “I would like to see rental and property prices remain stable. Everyone is making enough money; there’s no need for them to rise excessively.” By allowing new developments to enter the market, he believes that pressures on both rental and property prices can be alleviated, facilitating a more balanced economic environment.

In summary, while external factors may momentarily impact consumer sentiment, the fundamentals of Dubai’s real estate market remain strong. With a healthy supply on the horizon, industry leaders like Alabbar are focused on fostering an environment that prioritizes stability, affordability, and long-term growth in the UAE’s thriving property landscape.