Question: A few months ago, it felt like developers were launching something every other week. Now, it has gone noticeably quieter. Are developers holding back just because of the conflict and should buyers see that as a warning sign? OS, Dubai
Answer: Yes, the mood has definitely changed. I can certainly feel it. Earlier in the year, many launches were being absorbed with astonishing speed. There were reports in early March that developers who had been selling out off-plan projects within hours were suddenly facing a very different demand environment after the strikes and the wider conflict. That does not mean the market has stopped, but it does mean the confidence that drives aggressive launch schedules has been interrupted.
Having said that, I would not automatically treat a slower launch cycle as a warning sign. In fact, in some ways, it is the opposite. When the region becomes chaotic, sensible developers stop trying to force momentum that is not there. They focus on the projects already in hand, on collections, on construction and on keeping buyers reassured. That is often a more responsible response than pushing new launches into a market that is clearly distracted. Reports in early April said UAE developers were prioritising project timelines as the situation weighed on prices and volumes.
For buyers, the question is not whether a developer has launched this month or not. The real question is whether the project you are considering can still be delivered properly if sentiment stays confused for a while. Quietness in itself is not the danger. The danger is buying into a project that looks convincing only in a market full of excitement. Times like this reveal who is genuinely solid and who was simply surfing the mood. The fundamentals on most developers are still there, many of them are liquid and do not necessarily need to sell one more unit to still finish the project so in effect they are very much still in the driving seat.
Q: Everyone talks about the UAE property market, but surely the wider economy matters just as much. Is this conflict starting to hurt the non-oil economy in ways that property people are pretending not to see? HR, Abu Dhabi
A: Yes, it is starting to show, and this is exactly the kind of question more people should be asking. Property never sits in a glass box on its own. It is definitely tied to travel, retail, logistics, hiring, confidence and general business activity overall.
The UAE’s non-oil private sector slowed in March, with the S&P Global UAE PMI dropping to 52.9 from 55.0 in February. That was the weakest pace in nearly four years. Output growth softened, new orders slowed, supplier delivery times lengthened or were blocked and business expectations for the next 12 months fell to their lowest in just over five years.
However, the Emirates' PMI expanded slightly in May, rising to 52.6, from 52.1 in April.
The details matter here. In March data, sectors like tourism, retail and logistics were cited as the most affected, while construction was described as softer but still feeling a notable impact. That tells you the effect is widespread, not isolated.
If flights are disrupted, goods take longer, fuel is more expensive and visitor traffic falls, that does not stay neatly in one lane. It spills into spending, hiring and especially sentiment.
So, yes, anybody speaking about real estate as though it exists independently from the wider economy is definitely missing the point. The UAE remains far better managed than many countries under similar pressure, but that does not mean it is untouched. The serious question now is not whether there is an impact. There clearly is. The main question is how deep it goes and whether it proves temporary or begins to change behaviour for longer. I sincerely hope it is temporary.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@evadxb.com
