Business
ZAWYA: UAE developers prioritise project timelines as conflict weighs on prices, volumes
ZAWYA: UAE developers prioritise project timelines as conflict weighs on prices, volumes
About this update from Modon Holding Psc
Staff WriterReal estate developers in the UAE are continuing with their original project timelines, with softer prices and lower transaction volumes expected until the regional conflict ends, according to industry stakeholders.The war involving the US, Israel and Iran, which began on February 28, has pushed up oil, gas and commodity prices due to supply disruptions, but has not halted new project launches or construction activity.Developers including Dubai Investments, Azizi Developments, Modon and Arada continued to announce projects and contract awards during the first quarter of 2026.Sales resilience and high-end demandDubai’s real estate market has continued to post strong sales despite the geopolitical backdrop.Off-plan residential apartment sales in Dubai rose 12.9 percent year-on-year to 17.5 billion UAE dirhams ($4.8 billion) in March 2026, compared to AED 15.5 billion ($4.2 billion) in the same month last year, according to an analysis of Dubai Land Department (DLD) data by real estate data platform Al Masdar Al Aqaari.High-end demand has also remained strong, highlighted by the sale of a penthouse at Aman Residences Dubai for AED 422 million ($115 million), billed as the third-most expensive apartment transaction in the emirate’s history.In a statement emailed to media outlets, Vlad Doronin, Chairman and CEO of Aman Group said Dubai continues to demonstrate remarkable resilience and global appeal with the sale reflecting “strong demand” from international buyers.Measured activityMarket participants expect 2026 to mark a transition to more measured growth after two years of strong expansion.Ajay Rajendran, Founder and Chairman of Meraki Developers told Zawya Projects that the UAE real estate market has reached a level of maturity where it is less reactive to short-term geopolitical developments than in previous cycles.“Demand today is supported by structural factors — population growth, long-term residency policies, and sustained capital inflows. These are not easily reversed,” he said.That said, Rajendran expects pace of growth likely to normalise in 2026.He said buyers will become more selective, prioritising quality, location and delivery credibility over speculative investments.Zhou Yuan, Operations Director - Tomorrow World Properties, told Zawya Projects that a moderation in activity is likely, with a market adjustment anticipated due to a ...