DUBAI OFF-PLAN MARKET PASSES THE ULTIMATE STRESS TEST

Dubai is one of the few major cross-border property markets to have passed the ultimate stress test with confidence. Even as its pipeline of new construction projects faced geopolitical uncertainties and supply chain disruptions during the conflict, deliveries continued speed, according to comments released today by Juwai IQI Co-Founder and Group CEO Kashif Ansari.

“Dubai passed what I call the market ‘stress test’ with flying colors,” said Mr Ansari. “Dubai recorded its second-highest sales result for the first half of a year in its history, surpassed only by the first half of 2025. Dubai has proven it is a mature, well-managed market that protects buyers even in the case of conflict.

How the UAE Manages Buyer Money

Mr Ansari said, “In other markets, it’s common for buyer payments to go into the developer’s general accounts. Developers can spend that money on other projects as well.

“Dubai is 20 years ahead of other markets because the government’s escrow law came into force in 2007. It ensures every off-plan project must hold buyer payments in a dedicated, regulated bank account, safeguarding buyers from day one. Developers also must prove their financial ability to complete the project by committing 20% of construction costs before selling a single unit. And just as important, the government extends foreign buyers the same protection as locals, a level of support few markets anywhere can match.”

The Stress Test

“Everyone who is an expert in global real estate has been impressed by how Dubai’s market has performed over the last four months,” said Mr Ansari. “The cost to build every new project has risen amid disruptions around the Strait of Hormuz. Yet, most UAE residential projects scheduled for delivery in 2026 and 2027 remain on schedule.

“UAE developers have continued handing over completed homes right on schedule. Buyers around the world have taken note, including high-priced buyers who paid as much as AED422 million (US$114.9 million) for a single home.

Mr Ansari added, “The situation is improving very fast by the day. Deliveries are running on time, Dubai has bounced back stronger than before, and investors are returning in force. Buyers are staying confident, prices have continued to climb, and developers are performing exceptionally well. Backed by a government that stands firmly behind both buyers and developers, Dubai has confirmed its place as the world’s most resilient off-plan market.”

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