As the United States imposes new tariffs on steel and aluminium imports, Dubai’s real estate market is showing strong resilience, according to a new report from Betterhomes.
The study titled “Will Trump’s Tariffs Impact UAE Real Estate?” highlights increased foreign investor interest in Dubai despite global trade uncertainties.
Investment remains strong
The 25% US tariff on metal imports has affected international supply chains, but Dubai continues to attract steady investment. The report credits this to the emirate’s role as a global trade hub, a diverse economy, and major infrastructure projects currently underway.
The UAE’s strong macroeconomic position is also a key factor. With a population of 12 million and 3,500 active real estate and infrastructure projects, the country’s fundamentals remain sound. Dubai welcomed 19 million tourists in 2024, while aluminium exports to the US reached 350,000 tonnes — underlining the UAE’s role in key global industries.
Sharp rise in transactions
Betterhomes reported a 23% month-on-month increase in real estate transactions in April 2025, totalling Dhs 46 billion. Interest from investors in the US and China rose by more than 40%, and website traffic from these markets surged by 60%.
“We’ve seen a noticeable shift since the tariffs were announced. Interest from the US and China is up by more than 40%, and website traffic from those markets has surged by 60%. It’s clear that investors are seeing Dubai as a stable and strategic place to put their capital,” said Louis Harding, CEO at Betterhomes.
Policy support and demand
Government strategies such as Dubai’s Real Estate Strategy 2033 and the UAE’s federal goal to double foreign direct investment to $65 billion by 2031 are reinforcing long-term confidence. The country’s federal budget of Dhs 71 billion is focused on infrastructure and social development, while oil production is projected to reach 3.27 million barrels per day by 2026.
Dubai’s property market continues to benefit from rising demand, especially in villa and townhouse communities, where supply remains tight. Record-high millionaire migration is also contributing to rising property values.
Outlook remains positive
Despite global economic headwinds, the report points to Dubai’s diversified demand base and stable economic policies as key factors supporting continued growth in the real estate sector.
tanvir@dubainewsweek.com
