No huge drop in Dubai property prices that could be termed ‘distressed assets’, say industry executives
There is no huge drop in property prices due to the ongoing regional military conflict that could be termed “distressed assets,” said industry executives.They suggest that there are enough buyers in the market – especially UAE and GCC nationals and long-time expat residents – who are ready to snap up any “distressed deals.”“What I would caution is the word ‘distressed.’ We’re not seeing assets with significant price drops in any meaningful volume right now. Buyers looking for those opportunities are mostly finding a market that isn’t cooperating with that expectation,” said Firas Al Msaddi, CEO of fäm Properties.Stay up to date with the latest news. Follow KT on WhatsApp Channels.“Even the major developers are showing exactly the discipline you’d expect from institutions that have been through cycles before. No changes to pricing. No changes to payment plans. They set the tone for this market, and right now that tone is steady,” he added.Firas Al MsaddiDue to the regional military conflict involving the US, Israel, and Iran, which broke out on February 28, there have been reports of distressed selling and a massive drop in Dubai property prices.Firas noted that capital remains present and active.“Serious investors are still committing at the top end. Liquidity is not the question here… What I can say with confidence right now is: buyer demand is steady across most price ranges. Sellers are patient. Buyers are selective but committed. That equilibrium is holding.”Firas Al Msaddi believes that the market is holding because it has “genuinely matured.”“The structural foundations are stronger than they’ve ever been – better quality buyers, less speculative leverage, and a government that responds to uncertainty with speed and clarity. Dubai has earned its resilience. This moment is another test of it, and so far, the market is passing,” he added.Lewis Allsopp, chairman and co-founder of Allsopp & Allsopp, stressed that the Dubai property market has not dropped 30 per cent.Lewis Allsopp“What has dropped is the share price of listed developers on the UAE financial markets. And those are two fundamentally different things. What you are seeing on the stock exchange is investor sentiment reacting to news. Forward-looking markets price in anticipated slowdowns in deals, transactions, and revenue, and in an environment of political uncertainty, that reaction is entirely understandable. But conflating a stock price correction with a property market crash is a misreading of the data,” added Allsopp.He added that Emaar and Aldar are not distressed companies because their liquidity positions are exceptional, their asset bases are among the strongest in the region, and their fundamentals remain completely intact.“For investors with a medium-term view, this is a classic buying-on-the-dip moment. When confidence returns – and it will – these stocks will bounce, and they will bounce quickly,” he added. Dubai property buyers hunt distressed deals, but sellers hold firm on prices UAE real estate defies regional tensions: 100-million-dollar deals still happeningDubai property defies uncertainty: Investors prioritise stability
There is no huge drop in property prices due to the ongoing regional military conflict that could be termed “distressed assets,” said industry executives.
They suggest that there are enough buyers in the market – especially UAE and GCC nationals and long-time expat residents – who are ready to snap up any “distressed deals.”
“What I would caution is the word ‘distressed.’ We’re not seeing assets with significant price drops in any meaningful volume right now. Buyers looking for those opportunities are mostly finding a market that isn’t cooperating with that expectation,” said Firas Al Msaddi, CEO of fäm Properties.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
“Even the major developers are showing exactly the discipline you’d expect from institutions that have been through cycles before. No changes to pricing. No changes to payment plans. They set the tone for this market, and right now that tone is steady,” he added. Firas Al Msaddi
Due to the regional military conflict involving the US, Israel, and Iran, which broke out on February 28, there have been reports of distressed selling and a massive drop in Dubai property prices.
Firas noted that capital remains present and active.
“Serious investors are still committing at the top end. Liquidity is not the question here… What I can say with confidence right now is: buyer demand is steady across most price ranges. Sellers are patient. Buyers are selective but committed. That equilibrium is holding.”
Firas Al Msaddi believes that the market is holding because it has “genuinely matured.”
“The structural foundations are stronger than they’ve ever been – better quality buyers, less speculative leverage, and a government that responds to uncertainty with speed and clarity. Dubai has earned its resilience. This moment is another test of it, and so far, the market is passing,” he added.
Lewis Allsopp, chairman and co-founder of Allsopp & Allsopp, stressed that the Dubai property market has not dropped 30 per cent. Lewis Allsopp
“What has dropped is the share price of listed developers on the UAE financial markets. And those are two fundamentally different things. What you are seeing on the stock exchange is investor sentiment reacting to news. Forward-looking markets price in anticipated slowdowns in deals, transactions, and revenue, and in an environment of political uncertainty, that reaction is entirely understandable. But conflating a stock price correction with a property market crash is a misreading of the data,” added Allsopp.
He added that Emaar and Aldar are not distressed companies because their liquidity positions are exceptional, their asset bases are among the strongest in the region, and their fundamentals remain completely intact.
“For investors with a medium-term view, this is a classic buying-on-the-dip moment. When confidence returns – and it will – these stocks will bounce, and they will bounce quickly,” he added.
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