Think a trade war means bad news for real estate?

Not in DUBAI where every disruption sparks a new opportunity.

The global economy is shifting once again and this time, it’s U.S trade policy driving the change.With new tariffs being introduced,countries around the world are adjusting their supply chains,costs and investment strategies.

But what does all this mean for the UAE real estate market?

What’s Happening in Global Trade?

The United States is bringing in higher tariffs on certain goods including construction materials like steel, aluminum and wood. This change is already putting pressure on global supply chains including the ones that real estate developers depend on.

For countries that heavily depend on imported construction inputs, this can lead to short-term cost spikes and delivery delays.

Why is the UAE in a Stronger Spot?

The UAE is unique because of its free zones, zero-tariff trade deal and its role as a major re-export hub (like Jebel Ali Free Zone) which help protect it from supply chain issues.

It’s also investing in smart customs systems, advanced logistics and strong infrastructure, making it a top choice for global businesses wanting to set up production and distribution without tariff problems.

Means? While short-term challenges might arise, the UAE is in a better position than most to handle them and even benefit from them long-term.

So, What Should We Expect in the Short Term?

You might see –

• Delays in some construction timelines.
• Fluctuations in material costs.
• Developers reworking pricing strategies or postponing launches.

Here’s the positive news – Dubai’s property market is still in great shape. In 2024, residential prices surged by over 20% driven by strong demand, new visa policies and consistent economic growth. This demand continues to stay strong.

What Keeps the UAE Market STRONG?

Let’s look at a few key strengths –

• Over AED 200 billion in infrastructure investment planned through 2030.
• A growing population boosted by long term visas and job opportunities
• A diverse economy – real estate is key but sectors like tourism,tech, logistics and clean energy matter too
• Strong regulations that protect investors and ensure market transparency

Tips for Smart Investors

• Stick to Prime Assets like Downtown Dubai, Marina, DIFC – these areas hold value.
• Choose developer with a strong track record and good sourcing strategies
• Keep an eye on the currency – the AED’s peg to the USD keeps its stable
• Look for opportunities -short term price drops could mean long term gains