Why Dubai is a global capital safe haven

by Staff Reporter
Off-plan properties in Dubai

Dubai’s property market continues to show signs of stability and steady demand despite recent regional tensions, according to new market data released by betterhomes, which suggests investor activity is adjusting rather than retreating.

Market activity trends

betterhomes said its internal tracking from the start of the conflict through May 2026 indicates a gradual stabilisation rather than a downturn.

Inbound sales inquiries rose 11% between March and April, while tenant inquiries increased 40% over the same period. Property transactions in April also rose just under 2% month-on-month, marking the first increase since the conflict began. Off-plan deals accounted for 76% of total transactions, while overall listing supply remained stable, with no significant rise in sellers exiting the market.

Louis Harding, CEO of betterhomes, said, “We are simply not seeing the supply response you would expect from a market in genuine distress. Every week the metrics improve. This is a disciplined pause, not a retreat.”

Global market comparison

The report compared Dubai with other major investment hubs such as London and Singapore, noting that the emirate’s position remains supported by strong macroeconomic indicators.

In May 2026, Fitch reaffirmed the UAE’s AA credit rating with a stable outlook, while S&P maintained its AA rating in March 2026. Moody’s also completed a periodic review on March 30, 2026, reaffirming its Aa2 stable rating. All three assessments were made during the ongoing regional conflict.

The report also highlighted policy differences in other cities. London currently applies a 5% stamp duty surcharge on additional properties along with new landlord regulations introduced in 2026. In Singapore, foreign buyers face an Additional Buyer’s Stamp Duty of 60%, which continues to impact entry costs for investors.

Policy developments in UAE

betterhomes noted several recent policy and infrastructure developments that may support long-term market confidence in Dubai.

The removal of the Dhs 750,000 minimum property value requirement for UAE investor visas has widened eligibility for investors. The planned USD 9 billion Gold Line metro project, which will connect 15 districts by 2032, is also expected to support long-term demand. The UAE’s exit from OPEC was also referenced as a broader economic shift reflecting policy flexibility.

The report said these measures, combined with existing fundamentals, indicate continued government support for market stability.

Market outlook

According to betterhomes, Dubai has historically recovered from external shocks and continues to show underlying demand strength despite current regional conditions. While the situation remains sensitive to wider geopolitical developments, supply levels have stayed steady and investor interest has not declined.

Louis Harding added, “The questions we are hearing from investors are not about exits. They are about timing and positioning for the next phase. That shift in tone is itself a meaningful signal.”

tanvir@dubainewsweek.com

You may also like