Emaar founder Mohamed Alabbar stated that forecasts issued by some credit rating agencies suggesting a potential correction of up to 15% in Dubai property prices do not reflect the reality of the market. He noted that the data available to him indicates strong demand expected in the coming period.
In an interview with CNBC, Alabbar explained that Dubai’s real estate market is built on solid economic foundations. He added that the new units expected to enter the market during 2026 and 2027 will not create negative pressure as some assume. Instead, they will play a healthy role in supporting the balance between supply and demand and give the market greater ability to continue growing in an organized and sustainable manner.
He also pointed out that investment in the UAE is naturally a long-term investment, which distinguishes Dubai’s property market from many other markets that are influenced by short and rapid cycles. He added that past experiences have shown that sharp price increases are not healthy, as they are often followed by sharp corrections.
From this perspective, Alabbar believes that healthy market growth should be gradual. He explained that an annual increase of around 5% to 6% represents an ideal level that supports market stability and strengthens investor confidence over the long term.
Last Week’s Performance – March 2 to March 6
Recent data supports this view, as Dubai’s real estate market continues to record strong levels of activity. During the past week, the market recorded 2,630 sales transactions with a total value of AED 8.47 billion, reflecting continued active demand for property assets in the emirate.
The mortgage sector also witnessed notable activity, with 619 mortgage transactions registered at a total value of AED 2.98 billion, indicating continued liquidity flowing into the real estate sector and growing reliance on financing to support investment activity.
These indicators show that Dubai’s real estate market continues to maintain strong momentum driven by several factors, most notably population growth, an increase in the number of new residents, and continued inflows of foreign investment, in addition to supportive government policies such as long-term residency programs.
Together, these factors contribute to creating sustainable demand for real estate in Dubai, supporting the view that the market is moving toward a phase of balanced growth rather than the sharp cycles seen in some global markets.
With new units entering the market in the coming years, the sector may experience further balance between supply and demand. This aligns with the vision of many major developers who prefer stable growth that preserves the attractiveness of the market and strengthens international investor confidence in Dubai as a long-term investment destination.
