Amid the ongoing Iran war, new report by proptech firm Smart Bricks states that 85% of Dubai-based landlords are holding their assets, with transactions continuing at scale, a news that will only reinforce investor confidence that the emirate’s real estate sector remains structurally strong instead of being driven by sentiments, even as headwinds like oil price hike continue to hammer the global markets.
As per the study, which also accessed the property listing data of the city, the number of unique residential properties on major portals rose gradually from 105,300 on February 20 to 110,800 by March 16, witnessing a meagre increase of just over 5%, instead of sharp increases that generally indicate early signs of distressed selling.
Among the 600 Dubai-based landlords surveyed by Smart Bricks, while 10% expressed their intent to reassess their positions if geopolitical and economic conditions deteriorate further, only a small minority indicated willingness to sell below pre-escalation expectations.
Transaction activity, on the other hand, also highlights the ongoing liquidity. Between February 28 and March 16, Dubai recorded 6,048 residential transactions worth Dh20.2 billion, with roughly 63% concentrated in the off-plan segment. Activity in the ready market remained selective, largely driven by end-users and income-focused investors targeting rent-ready apartments rather than speculative purchases.
“What we are seeing is not a market in retreat, but one that is becoming more selective. Liquidity is still present, but it is flowing toward assets with stronger fundamentals,” said Mohamed Mohamed, CEO of Smart Bricks, while interacting with the Khaleej Times.
Industry analysts noted that the trend of Dubai-based landlords holding onto their real estate assets shows a maturing investment cycle rather than weakening demand. Recent assessments by global consultancies, including CBRE and Knight Frank, also indicated that Dubai’s residential property sector is benefiting from factors such as sustained population inflows, strong rental yields and a diversified international buyer base, particularly from Europe, Asia and high-net-worth investors relocating to the UAE for long-term residency and business opportunities.
Confidence within the sector is further boosted by robust macro-economic drivers. In fact, credit rating agencies such as Standard & Poor’s and Fitch Ratings have consistently highlighted the strength of the balance sheets and the fiscal buffers of the UAE’s sovereigns as key factors for investors to consider during periods of uncertainty within the region. This further adds to the attractiveness of Dubai as a “safe haven” for investors seeking a more stable investment environment within the wider context of a volatile world.
The Smart Bricks’ study also suggests investors are increasingly distinguishing between asset classes rather than completely exiting the market.
Off-plan developments backed by strong developers, prime locations and flexible payment structures continue to attract capital, while secondary-market activity is becoming more selective and income-driven. Property consultancies note that this pattern is consistent with historical trends.
Typically, past geopolitical events have first affected transaction timelines and demand before they impact pricing. Even then, the impact on pricing has been seen only in weaker micro-markets that face a threat of oversupply.