Dubai Real Estate: Emaar Founder Mohamed Alabbar Dismisses 15% Price Correction Fears
Emaar founder Mohamed Alabbar has dismissed reports of a potential 15% price correction in Dubai as 'very unrealistic,' noting that while consumer confidence may be 'shaken a little bit,' government policies typically restore it quickly.
Amid the ongoing US–Israel–Iran tensions and concerns about a cooling property market, Alabbar stated that Dubai’s real estate demand remains robust, with sellers holding firm on prices. He highlighted the market’s resilience despite geopolitical uncertainties.
Dismissing a potential 15% price correction as 'very unrealistic,' Alabbar, in an interview with CNBC, indicated that the new property supply expected in 2026 and 2027 could help moderate price growth and support sustainable long-term development.
'This is a market where sellers remain confident, and demand remains strong. I’m not concerned at all,' he said, adding that while consumer confidence may soften temporarily during periods of uncertainty, the country’s policies tend to restore it quickly.
Ratings agency Fitch said last year that Dubai’s real estate prices could decline by double digits in the second half of 2025 and in 2026. With planned deliveries set to reach 210,000 units, a doubling compared with the previous three years, the surge in supply is expected to limit any price drop to no more than 15%, the agency noted.
'In a situation like this, there could be a bit of cool down, but I don't see it. Consumer confidence could be shaken a little bit, but as I said, the policies of this country bring confidence so fast,' Alabbar told CNBC.
Regarding the influx of a large supply into the Dubai real estate market, the Emaar founder said there is also strong demand. 'I said this, I think a year ago, the supply that is coming in 2026, 2027, it will be good for the market. We are not here for short, we are here for the long, long time to do business. Therefore, we think that jacking up the price too high does not benefit anybody. We have seen this before, moves up, goes down. I really believe there is significant demand for development in the UAE, especially in Dubai,' Alabbar said.
'2026, 2027 supply will be good news for the market. So, the market can cool a little bit. We don't want rental to be too high; we don't want property prices to be too high. I think it is against economic progress because, I guess, real estate values contribute to almost 50%-52% towards inflation,' he said.
Emaar founder Mohamed Alabbar said that with current prices, developers are earning sufficiently, and there’s no need to push them higher. He expressed support for increased supply in Dubai’s real estate market to ensure the city remains affordable for investors and job seekers.
According to Alabbar, with the current price, developers are making enough money, and 'we should not shoot too high.' 'So, I am in favour of supply because I don't want investors or people who come here for jobs to feel that the city is too expensive. That is what I hear from policymakers as well. I am not saying because I am a developer, but I am very confident that I don't want prices too high,' he said.
'I want stability, I want long-term, but a bit of adjustment that supply comes in and eases pressure on price, which is good for the city,' he said while responding to a question on supply expected to increase in the Dubai real estate market. When asked what type of adjustment the Dubai real estate market will see, Alabbar said, 'I would like to see rental and property prices to be at this level. I don't want them to go beyond a level. Everybody is making enough money.'
'Good news is, if you were to compare average price per square foot and per square metre, average prices in Dubai, for rental or to buy a home, a villa or apartment and benchmark it against the global numbers. The number is very sweet; we should stay in this territory. Of course, there will be inflation,' he said.
