Emaar Founder Sees Dubai Property Market Balance in 2027 Amid Iran War

Emaar's Alabbar: Dubai Property Market to Achieve Balance in 2027 Despite Iran War Dubai's property market is expected to achieve a balanced state next year despite a softening caused by the Iran war, according to Emaar Properties founder Mohamed Alabbar. Speaking at the AIM Congress in Dubai on Monday, Alabbar said he is preparing for 2027, anticipating a wave of new supply that will create equilibrium in the city. Alabbar predicted that the ongoing Iran war could lead to a 5 to 10 percent adjustment in the broader real estate sector, describing it as an extraordinary situation. However, he noted that if the situation stabilizes, the market could become fast-paced again. Emaar, the largest listed developer in the emirate, is weathering the uncertainty due to its fundamental business strength. Alabbar pointed out that while some developers are offering discounts of up to 50 percent, Emaar has not resorted to discounting. He emphasized the company's policy of selling good products without discounts, backed by strong cash flow and substantial cash reserves. The war between Iran and the US and Israel, which began on February 28, has triggered one of the region's worst geopolitical crises in decades, impacting sectors like hospitality, aviation, real estate, and tourism. Alabbar, however, views the conflict as similar to others, including the situation in Ukraine, and noted that businesses with long-term horizons learn to weather such crises. He cited that since the 1920s, there have been 50 major crises globally. Emaar has 90,000 units under production across 18 markets and has not slowed down, as crises typically have shorter lifespans. Alabbar described the current period as an adjustment time, not a crisis, and said the company's strong cash position and low debt make it an opportune moment to expand. In June, Emaar announced plans for a Dh200 billion ($55 billion) megaproject in Dubai, designed to house nearly 150,000 people. The master plan, covering more than 4.5 million square metres, will include residential towers, villas, commercial offices, shops, luxury hospitality, and other amenities. Alabbar explained that crises typically last two to three years, and the company is preparing for the day after, citing Dubai's policies as among the most exciting globally.