Construction & Real Estate

Market uncertainty 'creates long-term investment opportunities in Dubai real estate'

DUBAI
Market uncertainty 'creates long-term investment opportunities in Dubai real estate'
Dr Amit Goenka

Periods of market uncertainty have historically created some of the strongest long-term investment opportunities in Dubai's real estate market, according to Nisus Finance, which believes the UAE's strong macro-economic fundamentals, resilient regulatory environment and sustained population growth continue to support long-term investor confidence.

The broader outlook for the UAE property market also remains highly encouraging. The market is projected to reach approximately $697.94 billion (AED2.58 trillion) this year, with the residential segment alone expected to account for $402.6 billion (AED1.47 trillion). These projections reinforce the long-term strength of the market, supported by continued population growth, international capital inflows and economic diversification, said Nisus Finance.

With property prices now at more sustainable levels, the current market presents an attractive opportunity for long-term investors before demand strengthens further as regional stability improves.

“The recent period of regional uncertainty has once again demonstrated the UAE’s resilience and reinforced its position as one of the safest places to live, work and do business. History has consistently shown that Dubai emerges stronger from periods of disruption, creating compelling opportunities for long-term investors who focus on market fundamentals rather than short-term sentiment,” said Dr Amit Goenka, Chairman and Managing Director of Nisus Finance Group (NiFCO).

"Dubai's population has recently reached approximately 4.74 million residents, with more than 160,000 new residents added since the beginning of the year. This sustained population growth, combined with continued business expansion and global investor confidence, provides a strong foundation for the next phase of growth in the real estate sector. As investors ourselves, our conviction in the long-term prospects of the UAE market has only strengthened."

The UAE's real estate sector, particularly Dubai's, has evolved into one of the world's most resilient property markets, successfully navigating multiple global and regional disruptions over the past two decades. From the Global Financial Crisis of 2008-09 and the Arab Spring to the COVID-19 pandemic and the recent period of regional uncertainty, the market has consistently demonstrated its ability to recover and return to growth, he said.

This resilience has been underpinned by proactive government policies, a stable regulatory framework, world-class infrastructure and the UAE's continued ability to attract global talent, businesses and capital. Rather than derailing long-term growth, each period of uncertainty has reinforced Dubai's reputation as a safe and reliable investment destination, said Goenka.

The transformation became particularly evident following the COVID-19 pandemic, when the UAE's swift public health response, introduction of the Golden Visa programme and successful hosting of Expo 2020 significantly accelerated demand for residential and commercial real estate. Combined with Dubai's high quality of life, tax-efficient environment and global connectivity, these initiatives encouraged many visitors to establish long-term roots in the country, supporting sustained demand for property.

While the market has naturally entered a more measured phase following several years of exceptional growth, pricing across quality assets has remained comparatively resilient. Greater buyer selectivity has contributed to a healthier and more sustainable market, creating opportunities for long-term investors to acquire assets backed by strong fundamentals, he pointed out.

Despite recent geopolitical developments, Dubai's residential property market has continued to demonstrate remarkable resilience. The emirate recorded 79,281 residential sales transactions worth AED221.4 billion during the first half of 2026, reflecting continued investor confidence even as transaction volumes moderated from the exceptional levels recorded in 2025. Pricing has remained comparatively resilient, indicating a market driven by fundamentals rather than speculation.

Similarly, Abu Dhabi's property market has continued its strong growth trajectory. According to the Abu Dhabi Real Estate Centre (ADREC), total real estate transaction value increased by 76.6 per cent to AED203.01 billion during the 12 months ending 30 June 2026, while the total number of transactions rose 64.53 per cent to 53,177, reflecting sustained investor confidence driven by transparent regulation, expanding investment zones and continued infrastructure development.

During the first half of 2026, property sales reached AED88.25 billion, approaching the AED93.34 billion recorded for the whole of 2025, highlighting the continued strength and momentum of Abu Dhabi's real estate market.

These trends reinforce the long-term investment outlook for the UAE's property sector. Forecasts continue to point towards sustained growth, supported by favourable demographics, continued international capital inflows and ongoing economic diversification.

Together, these indicators reflect the strength of Abu Dhabi's property market, with development projects worth AED2.78 trillion ($758 billion) currently in various stages of planning, development and construction, according to BNC Network. This further reinforces Abu Dhabi's position as one of the Middle East's fastest-growing economic hubs.

As regional trade, logistics and shipping continue to normalise, pent-up demand across key sectors of the economy is expected to support the next phase of growth. For the real estate, this is expected to translate into stronger transaction activity and renewed price appreciation across fundamentally strong assets.

Backing this long-term conviction, Nisus Finance recently announced investments totalling nearly AED322 million across two UAE residential projects, including an AED101.1 million investment to acquire Paradise View 1 in Majan. The announcement follows the company's acquisition of Lootah Avenue in Dubai Motor City for AED220.76 million, reinforcing its long-term commitment to the UAE real estate market.

The transactions are part of Nisus Finance’s planned $1 billion real estate fund in partnership with global institutional funds and family offices, dedicated to the UAE real estate market.

With more than a decade of investment management experience, Nisus Finance combines local market expertise with proprietary research to identify attractive risk-adjusted investment opportunities across real estate and urban infrastructure.

Nisus Finance specialises in urban infrastructure financing and private capital market transactions. The company, along with its subsidiaries and associates, focuses on two main areas: Fund & Asset Management and Transaction Advisory Services. - TradeArabia News Service