The current period is the best time to seize opportunities in the real estate market

Real estate developers said that current projects were not significantly affected by the rise in the prices of building materials, as their costs were secured in advance, while the impact may appear gradually in new projects.

They confirmed to Emirates Today that the current period is the best time to seize opportunities for investors, and a strategic opportunity for buyers in the luxury real estate market in particular, pointing out that entering the market today gives exceptional real estate assets, an investment advantage and greater value in the long term, especially in light of the limited supply of luxury villas that are witnessing high demand.

They warned that real estate prices in the UAE, especially in Dubai, do not depend directly on the high prices of building materials or geopolitical conditions, but rather on the equation of supply and demand. They expected that the market would witness, during the coming period, a state of stability, with the possibility of a slight increase or decrease in prices without recording significant jumps, considering that any limited decline in prices of between 5 and 10% would be a healthy and natural development.

They attributed the rise in the prices of building materials during the recent period to the exceptional disturbances associated with shipping traffic in the Strait of Hormuz on the one hand, and what they described as practices by some merchants who raised prices, despite the availability of some materials locally, or importing them from sources far from areas of tension on the other hand, stressing that the local market does not suffer from an acute shortage of building materials, as large quantities and good stocks of many materials are available.

New projects

In detail, the Managing Director of Damac Properties, Amira Sajwani, confirmed that the current projects were not significantly affected, given that their costs were secured in advance, pointing out that the impact may appear gradually in new projects, with the rise in the prices of materials such as iron and aluminum.

Sajwani pointed out, in statements to Emirates Today, that “major real estate development companies are less likely to be affected by these changes compared to small companies, given that they have financial reserves and better cost planning.”

Sajwani believed that the current time is the best time to seize opportunities for investors, advising not to wait to enter the market, but she stressed that the decision to enter the market must be based on the goal, especially for those who want to live.

She said, “Continuing to pay rent represents an ongoing cost with no return,” stressing the importance of studying the market and choosing a developer with a strong record of delivery, especially in times of economic challenges.

Supply and demand

In turn, the CEO of Alwaleed Development Group, Mohammed Abdul Razzaq Al Mutawa, confirmed that real estate prices in the UAE, especially in Dubai, do not depend directly on the high prices of building materials or geopolitical conditions, but are primarily linked to the supply and demand equation in the market.

Al-Mutawa explained to Emirates Al-Youm that part of the rise in the prices of building materials during the recent period is due to the exceptional disturbances associated with shipping traffic in the Strait of Hormuz, which affected the costs of shipping some materials, while another part is due to the practices of some merchants who raised prices, despite the availability of some materials locally, or importing them from sources far from areas of tension.

Al-Mutawa stressed that the local market does not suffer from a severe shortage of building materials, as large quantities and good stocks of many materials are available, but some suppliers have taken advantage of the current circumstances to achieve additional gains, he said.

Regarding the impact of rising construction costs on real estate prices, Al-Mutawa said that during the period preceding the crisis in the region, the market witnessed strong increases as a result of increased demand versus limited supply, but the increase in real estate projects and offers presented contributed to the market reaching a stage of balance between supply and demand.

He added that the significant increases recorded by the market at the end of 2025 and the beginning of 2026 may have represented the peak of the current price cycle, expecting that the market will witness a state of stability during the coming period, with the possibility of a slight increase or decrease in prices without recording major jumps.

He stressed that real estate developers have the ability to absorb part of the rising costs, especially after achieving high profit margins over the past years, considering that a decline in profitability levels to lower rates will remain acceptable and beneficial for the sustainability of the real estate market and achieving a balance between the various parties.

Al-Mutawa expected that the state of relative stability in the real estate market would continue during the coming period, noting that the increase in real estate supply in Dubai and the Emirates in general may limit the occurrence of new major waves of rise, even with continued demand in the market.

Al-Mutawa believed that any limited decline in prices, ranging between 5 and 10%, would be a healthy and natural development that would support the stability of the real estate sector in the long term.

Luxury real estate

In the same context, the CEO and CFO of Alpago Group, Sayed Mahrouz, expected that the current rise in the prices of building materials would gradually be reflected in the pricing of upcoming real estate projects, especially within the ultra-luxury real estate category that relies primarily on high quality and imported materials.

He told Emirates Today: “We have already noticed an increase in the costs of some luxury materials and specialized building elements, and although this effect does not appear immediately, we see that these increases will become more evident in the prices of launching new projects during the next two or three quarters, especially in projects that are still in the early planning or construction stages.”

Mahrouz continued: “We consider the current period a strategic opportunity for buyers and investors in the luxury real estate market. The market in Dubai still has strong fundamentals, while the prices of some prospective projects have not yet fully reflected the recent rises in construction and operating costs.”

Mahrouz said that entering the market today gives buyers an investment advantage and greater value in the long term, especially in light of the limited supply of luxury villas that are witnessing high demand.

He continued: “From our point of view, the current market environment still provides a strong opportunity for buyers, especially those looking for sustainable investment value, as the luxury real estate market in Dubai continues to benefit from continued international demand, in addition to the limited supply of ultra-distinctive properties, and the broad economic growth that the city is witnessing.”

Mahrouz believed that buyers who enter the market before future price adjustments take effect will benefit from securing exceptional real estate assets at a stage that is considered a competitive advantage within the current market cycle.

He expected that current market conditions would continue to support “healthy growth” for prices in Dubai and the UAE in general, especially in the category of quality real estate and ultra-luxury units overlooking waterfronts. He said: “While high construction costs are a contributing factor, the market is also driven by the strength of international demand, investor confidence, and the scarcity of truly unique real estate products.”

He stressed that the market today has become more mature and built on solid economic foundations, as growth has become linked to quality, exclusivity, and creating long-term value, away from short-term speculation and speculation.

Facilities and offers

The director of Manarat Al-Shati Real Estate Company, Fouad Jassim, agreed that “the current period, in light of the rise in the prices of building materials, represents what can be called a season to seize opportunities to purchase real estate units, especially in light of the offers presented and the incentive facilities, and the current properties are not affected by the prices of building materials.”

He said, “The rise in building materials prices will motivate many investors to buy more during the current period, to hedge against any repercussions on real estate prices in the future,” pointing out that purchases will currently be largely focused on units that are ready or that are considered “under construction” and will be delivered in the near future, whether within a year or two.

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The effect takes time

The project manager at a contracting company, Ahmed Abdel Majeed, said that the prices of building materials are witnessing gradual increases until the present time, especially in basic materials such as cement and concrete, in addition to the cost of transporting these materials and equipment used in construction operations.

He explained that “the materials and finishes that are imported from abroad are also witnessing continuous increases, due to the change in the cost of global supply and shipping, which represents pressure and burden on contracting companies.”

He continued: “It is natural for the effects of the cost of building materials to take time to be reflected in real estate prices, with contracting companies so far committed to implementing at the same old contract prices in projects that are currently under implementation, whether they will be delivered soon or within two years.”

He believed that “price increases in the cost of building materials will accelerate the pace of demand for purchasing real estate, in a way that will stimulate the real estate market at greater rates and contribute to the emergence of new real estate projects in various parts of the country to accommodate the growth in demand for units.”

He said: “It is currently difficult to expect increases in the cost of building materials to stop at a certain point or timing, in light of the variables in shipping and supply prices, which constantly change the prices of materials.”

“Gargash Real Estate”: Prices of building materials support current demand

The general manager of Awad Gargash Real Estate Company, Raad Ramadan, said, “The recent increases in the prices of building materials, which come as part of global price increases in those materials due to the cost of shipping, will support the demand for purchasing real estate now, in the context of hedging many potential investors who were planning to buy, from any effects that may appear on real estate prices in the future.”

In response to a question about the extent of the impact of the rise in the prices of building materials on real estate prices currently and in the near future, Ramadan said: “It is supposed to take time until it has a tangible impact on the prices of real estate units during the current period, whether the units are ready, or those that will be delivered in the near future.” He continued: “There has been a demand by many investors during the recent period to buy various real estate units, whether under the incentives of variables in the cost of building materials, or setting allocations for investment in real estate.”

Emirates Consumer Protection: 5 tips when purchasing building materials

Member of the Board of Directors of the Emirates Consumer Protection Association, Walid Al Naqbi, provided a number of important tips that consumers must take into consideration when purchasing building materials during the current period, which are represented in five necessary guidelines.

Al-Naqbi advised the need to compare prices between more than one supplier of building materials, ensure the quality and source of the materials, and request official invoices for each purchase, with the need to document any contracts clearly, in addition to consumers having sufficient awareness not to rush into purchasing during periods of price fluctuations whenever possible.

Al-Naqbi revealed that complaints about building materials prices at the Emirates Consumer Protection Association accounted for a share ranging between 25 and 30% of the total consumer complaints, from the beginning of this year until the current period.