As a leading voice in the UAE property space and an influential property investor and YouTuber, Alex Gorasov was recently asked to weigh in on how Trump’s tariff policies could affect the Dubai real estate market. Here are his responses to key questions that unpack the ripple effects of international trade decisions on the UAE’s property sector.
- What impact do you expect Trump’s tariffs to have on Dubai’s property market?
“While the direct trade relationship between the U.S. and Dubai is limited, Trump’s tariffs could indirectly impact investor sentiment, capital flows, and global liquidity—making Dubai more attractive as a safe-haven market for international investors whose businesses got hit by these tariffs in their base countries.”
- How might they affect construction costs?
“While it’s true that the UAE might not import large volumes of steel, aluminum, or glass directly from China, the impact of US tariffs isn’t isolated. The US is targeting multiple countries with tariffs — including China, Canada, and the EU — all of whom are major exporters of construction materials. When tariffs hit globally, suppliers increase prices, and those costs ripple throughout international markets, including the UAE.
Remember, construction companies here often rely on international suppliers, even if indirectly through intermediaries. So if those upstream prices go up, local developers pay more, and that contributes to inflation in construction costs.
On top of that, the AED is pegged to the USD. If US policy causes the dollar to weaken or become volatile (as tariffs can do), then the AED weakens too — which means higher import costs across the board for the UAE, regardless of the source.”
- Who stands to benefit or lose out?
“End-users and long-term investors could benefit from price corrections or better deals in the short-term, while developers reliant on imported materials or off-plan sales may face cost pressures, supply chain delays and slower absorption.”
- What’s the likely impact on the off-plan market?
“The off-plan market may see cooling demand as buyers grow more cautious amidst global uncertainty, particularly if cost inflation leads to pricing misalignment or delayed deliveries. While I don’t expect a dramatic change in the market, I see it being stable with slight corrections primarily to the inflated off plan prices versus ready made properties as the main correction cause, and not the Trump tariffs.”
- Any effect on project financing?
“Yes—tariff-driven inflation or global volatility could push interest rates higher or tighten bank lending, making project financing more expensive or harder to secure for developers.”
For more insights from Alex Gorasov on Dubai real estate, subscribe to his YouTube channel Alex Gorasov Property Investor, or follow him on Instagram and LinkedIn.
