The ‘Trump tariffs’-induced upheavals in the global trade arena are anticipated to cause short-term disruptions and price drops in the real estate and construction sectors in the UAE and the wider region amidst expected shifts in global supply chains, industry players told Arabian Business.
The UAE and other regional markets are seen gaining from the likely shifts in supply chains as the high trade tariffs imposed by the US are expected to trigger new suppliers looking at the Gulf countries as a more lucrative market, they said.
“We have already seen cases where, when one country imposed high tariffs, others benefited by offering competitive pricing. The same trend could play out now, with Dubai and other key markets gaining from this shift,” Anis Sajan, Vice Chairman of Danube Group, told Arabian Business.
Sankey Prasad, CMD, Colliers India and Middle East, said the UAE’s strong infrastructure pipeline of over $200 billion in projects planned through 2030 positions it to benefit from global supply chain shifts.
“Raw material prices may experience short-term corrections, but [the UAE’s] real estate fundamentals remain resilient,” Prasad told Arabian Business.
Sector experts said that with Dubai’s residential sector seeing over 20 per cent annual price growth in 2024 and Abu Dhabi investing heavily in logistics and industrial real estate, the region is poised to emerge stronger, offering new opportunities for investors and suppliers alike.
Temporary market volatility expected
Industry players said they anticipate some short-term disruption across real estate and construction supply chains in the wake of the current market upheavals.
Market players and manufacturers in the UAE, and the wider region, must now look beyond America and tap into other emerging markets to successfully navigate the current market challenges, they said.
Sajan said the key to survival in uncertain times is adaptability.
“Just as businesses navigated the challenges of COVID-19 and emerged stronger, they must now pivot, explore new avenues, and diversify their customer base to stay resilient,” he said.
Sajan also said he believed the market upheavals and the crash will be temporary.
“While there may be short-term disruptions, real estate and raw material prices are likely to drop as global supply chains shift and new suppliers look at UAE as a more lucrative market,” he said.
Angad Bedi, CMD, BCD Group, an India-borne construction company-turned global real estate conglomerate, said that though the ‘Trump tariffs’ are likely to create temporary volatility in raw material costs, the UAE’s strategic advantages mitigate long-term risks.
“Global players will pivot toward the UAE – and Middle Eastern markets – for growth as the greater diversification moves in the region could lower construction costs and boost competitiveness in the UAE’s residential, commercial, and industrial sectors,” Bedi told Arabian Business.
“With real estate transaction volumes in Dubai alone surpassing AED430 billion in 2024 and infrastructure spending forecast to grow 5 per cent annually, the region remains highly attractive,” he said.
Bedi said the influx of alternative suppliers and government initiatives like ‘Operation 300bn’ could stabilise markets quickly.
Prasad said that though there could be some short-term disruption across real estate and construction supply chains, the massive infrastructure investments – currently underway and planned – by UAE authorities will help the sectors and the country to successfully withstand the disruptions.
“As manufacturers seek tariff-free hubs, the UAE’s free zones and advanced logistics could attract new investments,” he said, adding that the UAE could actually emerge as a major beneficiary from the anticipated shifts in global supply chains.
“The shortage of office space further fuels opportunities for growth in this segment too,” he said.
UAE property shows resilience
Azhar Sajan, founder of Casa Milano, a leading player in the housing ancillary segment, said the unveiling of President Trump’s tariffs has undeniably introduced significant volatility into global markets, affecting various sectors, including building materials.
He also cautioned that the disruptive policy moves by the new US administration could pose immediate challenges to the construction, allied industries as well the real estate sector.
“While these developments pose immediate challenges, the UAE’s strategic position as a global trade hub and its diversified economy provide a buffer against such external shocks,” Sajan told Arabian Business.
He, however, said industry players in the region should remain vigilant, closely monitor international developments to adapt their strategies accordingly.
A section of the real estate industry players in the UAE, however, were not perturbed by the anticipated market upheavals.
Imran Khan, Founder & CEO of PIXL Group, a Dubai-based leading off-plan real estate marketing agency, said while Trump’s tariffs may create short-term noise in global markets, Dubai and the wider UAE property sector stand on much stronger fundamentals.
“Investors and developers aren’t just looking for stability – they’re drawn to a market that’s actively shaping the future of real estate through AI-driven innovation, cutting-edge digital infrastructure, and forward-thinking governance,” Khan told Arabian Business.
“The UAE has spent years cementing its position as a global real estate hub, and that resilience, combined with its ability to adapt, ensures it remains a top destination for capital – regardless of external eco-political shifts,” he said.
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