The real estate market in the United Arab Emirates remains one of the most resilient in the Gulf and is capable of weathering geopolitical shocks due to its diversified investor base and openness to global capital, according to an industry expert.
The emirates of Dubai and Abu Dhabi have strengthened their position in recent years as regional and global centres for business, residency, and investment. This has been supported by robust legislative frameworks, flexible regulations, and high-quality developments across luxury residential, tourism, and mixed-use projects, said Abdulrahman Al-Husseinan, Kuwaiti economist and founder of Al-Wathiqa Regional Real Estate.
He noted that market data through the end of 2025 shows continued momentum in property transactions in both Dubai and Abu Dhabi, driven by strong overseas demand and financial stability. This reflects the UAE’s solid economic fundamentals and the property market’s ability to navigate geopolitical uncertainty while maintaining steady performance.
Al-Husseinan added that the country’s experience in managing property market cycles, combined with the diversification of its non-oil economy, has reinforced the sector’s resilience and sustained investor appeal during uncertain periods. As a result, investors increasingly view Dubai and Abu Dhabi as relatively stable investment destinations within a volatile regional landscape.
He also pointed out that current geopolitical developments in the Middle East cannot be separated from the wider economic dynamics of the Gulf Cooperation Council. Property markets across the region are closely influenced by these developments due to the strong links between regional economies and cross-border investment flows.
According to Al-Husseinan, the Gulf economy today is highly interconnected and no longer operates as a set of isolated domestic markets. Instead, it functions as an integrated investment ecosystem whose effects extend across all GCC countries.
Available data shows that total real estate transaction values across the Gulf surpassed $380b by the end of 2025, with further expansion expected in residential, investment, and commercial segments in the coming years. He added that the real estate sector contributes roughly 15% to 18% of GDP in some GCC economies.
This interconnection means that political developments can influence investor expectations, particularly by increasing demand for safe assets such as property compared with higher-risk investments.
However, Al-Husseinan said the current impact is mainly visible in market sentiment rather than in the underlying economic fundamentals. The supply-demand balance remains relatively stable across many Gulf markets, supported by strong liquidity, financial stability, and domestic demand driven by rising incomes and ongoing urban development.
He stressed that political and security stability will ultimately determine the pace of a full market recovery. Nevertheless, he noted that the region is not facing an economic downturn or a deterioration in real estate fundamentals. Instead, investors are going through a phase of reassessment and cautious monitoring. The impact is likely to remain short-term unless geopolitical tensions continue for an extended period.
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