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Geopolitical blues: Selling Dubai to the people who already live there

International Finance Business Desk — Mon, 24 Aug 2026 01:00:05 +0000

The UAE insists its tourism economy is on the mend. But, its own incentive schemes, and its own central bank, tell a more complicated story.

On the evening of August 18, phones across the UAE lit up with an emergency alert. The Ministry of Defence later confirmed that two ballistic missiles had been launched from Iran towards the country, one falling outside territorial waters and one inside.

It was the first such warning in over a month, and it landed a day after the 14-point memorandum of understanding (MoU) between Washington and Tehran expired with no successor agreement in place.

By the next morning, Abu Dhabi had imposed an indefinite trade embargo on Iran. Tehran had denied firing anything at all. A Shakira concert in the capital was cancelled along with the festival built around it.

That is the backdrop against which Dubai is currently asking its residents to invite their relatives over for a holiday.

Launched on July 20 by the Department of Economy and Tourism, A Dubai Invite offers UAE citizens and residents a package of hotel, dining, and attraction benefits worth more than AED 3,000, or roughly USD 800, if a nominated friend or family member arrives in the emirate on a tourist visa before October 31. Residents can claim up to three packages.

The perks remain valid until the end of the year. It is a referral scheme, essentially, of the kind a challenger bank might run to grow its deposit base, and it is being deployed by a destination that welcomed 19.59 million international overnight visitors in 2025, its third consecutive record year.

What actually happened to the numbers
Dubai hotels ran at 84.7% occupancy in February before the US and Israel struck Iran on February 28, and Iran began retaliating against American allies across the Gulf.

In the war’s first six weeks, more than 530 ballistic missiles, dozens of cruise missiles, and over 2,200 drones were directed at the UAE. Within 48 hours of the opening strikes, hotel booking cancellations across Dubai were running at 60%, and more than 80,000 short-term rental bookings went in the first week alone.

By mid-March, occupancy in Dubai had bottomed out at 19.6%. CoStar recorded 33.1% for the month as a whole, a fall of 54.4% year-on-year, with the Emirates-wide figure at 36.2%. The World Travel and Tourism Council put the cost to the wider Middle East at USD 600 million a day in lost visitor spending, roughly USD 180 million of it attributable to the UAE.

The damage did not stay in the hospitality accounts. Real estate transaction volumes fell 37% year-on-year during the first twelve days of March, and 49% against February, on Goldman Sachs figures.

ALSO READ | With 700 projects worth USD 138 billion, UAE emerges as Gulf’s leading real estate market

The ValuStrat Price Index recorded its first monthly decline since 2020, and listed developer stocks shed a third or more of their value. Dubai’s short-term rental stock briefly stopped functioning as tourist accommodation altogether and became displacement housing, with stays of 29 days or longer tripling as residents opted out of long leases while they decided whether to stay in the country.

That last detail matters more than it first appears. Real estate accounts for more than a quarter of the loan book at some of the country’s largest banks. An expatriate population that leaves, or hedges, does not simply reduce hotel demand. It weakens the collateral underneath the banking system.

The official ledger
The UAE economy grew 3% year-on-year in the first quarter of 2026 to reach AED 485 billion, with non-oil GDP up 4.8% and now accounting for 79.4% of national output. Financial and insurance activities expanded 17.3%, construction 8.1%.

Non-oil exports rose 23.9% in the first half to AED 452.8 billion. S&P has reaffirmed the sovereign at AA with a stable outlook, noting a consolidated government net asset position of around 184% of GDP, among the strongest anywhere in the world.

Dubai’s airspace reopened on May 2 after nearly three months of restrictions, and Emirates restored 96% of its network within days, flying to 137 destinations across 72 countries. Occupancy spiked back to 82.2% over Eid at the end of May.

The Department of Economy and Tourism has committed an AED 2.5 billion support package for tourism, hospitality, and entertainment businesses, aimed at protecting jobs and cash flow rather than buying advertising.

Developers are still building, with around 39 hotels and 9,520 rooms due between 2026 and 2029. The D33 economic agenda has not been revised.

Officials are entitled to point at all of this. The problem is what sits between the two ledgers.

The tell is in the central bank’s own forecast
In April, the Central Bank of the UAE was holding its 2026 growth forecast at 5.6%, unchanged from 2025, even as Oxford Economics moved to a 0.2% contraction and Goldman Sachs warned of a possible 5% shrinkage.

That position did not survive contact with the second quarter. In its June quarterly report, released in early July, the central bank cut the 2026 forecast to 1.7%, with hydrocarbon GDP at 0.8% and non-hydrocarbon at 1.9%.

A downgrade of nearly four percentage points by the institution with the best view of the domestic data is not a rounding adjustment. It is an admission that the disruption is not confined to a bad quarter in the hotel trade.

The same report pencils in a rebound to 9.8% in 2027, which tells you how the authorities are framing this. The loss is being treated as deferred rather than destroyed, a hole that fills in once the shooting stops.

Why the recovery is stuck in the middle
The first-half hotel data shows a market that has come off the floor without returning to anything like normal. UAE-wide occupancy fell nearly 28 percentage points year-on-year through June, with revenue per available room down 31.8%, on CBRE analysis of CoStar data.

Dubai took the worst of it, with occupancy down 24.6 points to 56.4% and RevPAR off 35.2%. Average daily rates slipped 7% to AED 701. After the Eid spike, June settled back into the high forties and low fifties.

Abu Dhabi saw occupancy fall only 13.5 points and RevPAR 20.3%, cushioned by domestic and regional demand, and a fixed events calendar. The split is instructive. Dubai’s model, built on long-haul arrivals and transit traffic, is the one most exposed to airspace closures, insurance exclusions, and nervous consumers eight time zones away.

ALSO READ | UAE accelerates West-East Pipeline project to reduce Hormuz dependence

Travel advisories are the most damaging. The United Kingdom and Australia relaxed their warnings in June after the initial framework agreement, but Australia still advises reconsidering the need to travel, and the US State Department has held the UAE at Level 3 since March, when it ordered non-emergency government personnel to leave.

A security alert on August 1 went further, telling Americans in the region to consider departing or be ready to. Advisories are not merely reputational. Above certain thresholds, insurers will not write cover, and a holiday nobody can insure is a holiday most people do not take.

Second, airline capacity lags the reopening. European carriers were constrained by an EASA conflict-zone bulletin well into the summer, and were not broadly expected back before October. Seats determine arrivals in a way that marketing cannot.

Third, the business travel that underpins Dubai’s weekday hotel economics has not returned. More than 100 conferences and exhibitions in the UAE were cancelled or postponed because of the Iran war, on Northbourne Advisory figures. Arabian Travel Market itself had to be pushed to September. Corporate and group demand rebuilds slowly, and it rebuilds last.

What the incentive scheme really signals
When a destination pays its own residents to generate arrivals, it is telling you that the ordinary demand-generation machinery, meaning advertising, tour operators, airline partnerships, and word of mouth, is not delivering enough at acceptable cost.

Emirates and Etihad bundling conflict-related travel cover and free medical insurance into tickets carries the same message. So does Atlantis discounting by a quarter, and five-star resorts selling staycations to residents at half price.

Some of the response is genuinely clever. Using an expatriate population drawn from roughly 200 nationalities as a distribution channel is a rational way to reach markets where paid media has stopped working, and the scheme is timed for the summer trough when hotels would be discounting anyway. But there is a cost.

Analysts have spent months urging Dubai hoteliers to hold pre-crisis rates rather than trigger a price war, on the sound grounds that rate is far harder to rebuild than occupancy. A city that trains its customers to expect vouchers and two-for-one dining is doing something to its own positioning that will outlast the war.

Meanwhile, the quiet closures continue. Several landmark properties have shut for extended refurbishment, including Anantara World Islands and the Burj Al Arab, the latter for an estimated 18 months of capital work.

None has publicly linked the timing to the war. Taking rooms out of a market with no demand is sound asset management. It is also, unmistakably, a supply response to a demand shock.

The honest position
The UAE has the fiscal depth to absorb a bad year without distress, a diversified non-oil base that is still growing, and a genuine record of recovering from regional shocks with prices and volumes higher on the far side.

GlobalData expects UAE international arrivals to fall about 12% this year to 26.4 million before rebounding to 32.1 million in 2027. Dubai is targeting a return towards 19.6 million visitors, and betting heavily on the winter season and on projects such as the USD 3.9 billion Wynn resort at Al Marjan Island in 2027.

But a forecast is not an observation. Every recovery scenario now being briefed rests on de-escalation, and this week, that assumption looked thinner than it has since May. The memorandum has lapsed, the naval blockade is in force, Tehran says its posture has shifted from defensive to offensive, and missiles were fired towards the Emirates again.

The dichotomy, then, is not really between a struggling economy and an optimistic government. It is between a balance sheet that can wait and a business model that cannot. Sovereign wealth buys time. It does not buy a ceasefire, and it does not persuade a family in Manchester or Melbourne to book a beach holiday under a Level 3 advisory.

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Australian bank stocks slide as Westpac warns of weak housing investor appetite

International Finance Business Desk — Tue, 11 Aug 2026 03:00:09 +0000

Australia’s second-largest lender Westpac Banking Corp has reported a 20% fall ‌in mortgage applications, apart from forecasting investor housing credit growth to halve in 2027, as the Labor government’s weigh on property demand in the Trans-Tasman country.

As per the bank’s projections, investor credit demand for Australia’s housing sector would fall from 9.1% in 2026 to 4.5% in 2027 and 4.4% in 2028, as higher higher interest rates and policy changes weigh on the industry’s future prospects.

“Total housing credit growth would slide to 4.7% in 2027 from 6.8% in 2026,” Westpac said in ⁠a presentation. It, however, expected a slight improvement from owner-occupied credit demand to push total credit growth to 5.2% in 2028.

The outlook has further reinforced investor fears about Australia’s banks, long buoyed by record property prices and favoured for their reliable dividends, potentially facing an uncertain trading environment , as there is no clear-cut direction about the Trans-Tasman country’s interest rate direction.

ALSO READ | Australia’s housing conundrum: Straining the system

The poor outlook weighed on Westpac’s rivals, too, with shares in Commonwealth Bank of Australia, National Australia Bank and ANZ all down more than 2%, as of August 10.

“However, Westpac’s shares have underperformed its rivals this year, under pressure as investors forecast the bank’s net interest margin, a key gauge of profitability, could fall slightly next year,” said Citi analyst Thomas Strong.

The decision of the Anthony Albanese government to scrap generous tax concessions to property investors has rattled the Australian housing market. It has also become a headwind for Australia’s top four banks as they control more than 70% of the national mortgage market and count on home loans as a core profit engine.

Auction clearance rates have fallen to the lowest levels in six years, while nationally average prices are down about 2% over four months, according to data from property consultant Cotality.

The 20% fall in mortgage applications at Westpac was double the decline it ⁠reported in the weeks after the government announced its tax changes.

Rival NAB, on the other hand, saw its mortgage applications falling 15% during the May-July period.

“The undersupply of housing combined with population growth is expected to partially offset the impact of higher interest rates and recent Federal Government policy changes on the housing market,” said ⁠Westpac CEO Anthony Miller.

As per the lender’s insights, Australian households remained under pressure from higher living costs, though business investment and overall customer resilience continued to support activity.

Westpac reported cash earnings of AUSD 1.8 billion (USD 1.27 billion) for the quarter ended June 30, down from AUSD 1.9 billion a year earlier.

The bank’s core net interest margin was broadly stable during the quarter, while its lending and deposit books rose 2%, reflecting broad-based growth across the Australian portfolio.

ALSO READ | Australian households struggle to afford everyday purchases: Dr John Hawkins

Westpac’s common equity tier 1 capital ratio stood at 12.1%, remaining way above regulatory requirements while providing balance sheet flexibility.

Housing industry under severe pain
Home prices in the Trans-Tasman country have suffered a second month of steep falls in July, with headwinds like higher borrowing costs and unease over tax changes are going to test the resolve of the nation’s central bank.

Figures from property consultant Cotality showed national home prices fell 0.7% in July from June, the largest monthly drop since December 2022. Annual growth slowed sharply to 5.3%, well below the double-digit pace enjoyed early in the year.

Sydney and Melbourne again led ⁠the monthly decline with falls of 1.4% and 1.2% respectively, leaving both more than 5% lower than their recent peaks.

The slowdown also spread to mid-sized cities like a wildfire, with Perth’s once-booming market now being flat.

Gerard Burg, Cotality’s head of research, noted reported prices for the previous two months had also been revised lower, reflecting the speed of the downturn underway.

“These revisions highlight the rapid evolution in the market, particularly across the mid-sized capitals. We have observed a deterioration in the flow of ‌new ⁠listings across the country in the recent weeks, led by Sydney, as potential vendors assess a weak market and choose to wait until conditions improve,” he said.

The sector’s poor health also found a repeated mention in the words of Reserve Bank of Australia Governor Michele Bullock in July. She also indicated that the central ⁠bank is being done raising interest rates after three hikes this year.

“A sustained fall in housing turnover would have wide implications for the economy given the housing sector’s extensive links to industries ⁠ranging from real estate services to tradespeople and construction,” Bullock said.

Data from the software company PropTrack too showed its measure of home prices falling 0.3% in July, the fourth straight month of ⁠losses, with Sydney down 0.6%.

The agency, like Cotality, blamed proposed curbs to tax benefits on investment properties behind poor buyer confidence, while noting that ongoing price falls could be leading buyers to wait until values stabilise.

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Qatar’s real estate deals touch USD 464 million mark, Doha tops the chart

International Finance Business Desk — Wed, 29 Jul 2026 04:00:22 +0000

Qatar’s real estate sector maintained its steady momentum, as the total value of transactions reached QR1.692 billion through 541 registered deals in June.

As per the data issued by the Real Estate Registration Department at the Ministry of Justice, Doha, Al Rayyan, and Al Wakrah municipalities were the most active in terms of financial value. Doha Municipality recorded the highest value of real estate transactions at QR640.140 million during the month, accounting for the largest share of the market in financial terms.

“Al Rayyan Municipality followed closely with property deals worth QR418.378 million, while Al Wakrah Municipality ranked third with transactions valued at QR236.184 million. Together, the three municipalities accounted for the overwhelming majority of the month’s total transaction value, highlighting their continued importance as Qatar’s principal real estate markets,” the Department noted.

In terms of sales activity, Doha and Al Rayyan led all municipalities by recording 25% of the total number of properties sold during June. This was followed by Al Wakrah (20%) and then Al Dhaayen (9%).

As per the department’s estimates, the figures indicate sustained demand for residential, commercial and investment properties across the Gulf nation’s fastest-growing urban centres.

The market index also measured activity based on the total area of land traded. Al Rayyan maintained a commanding lead, representing 34% of the overall transaction area during the month. Doha followed with 21%, while Al Wakrah accounted for 20% of the total area traded.

The department’s report also highlighted the concentration of high-value transactions during June. Of the ten most valuable properties sold during the month, five were located in Doha Municipality, three in Al Rayyan and one property in each of the municipalities of Al Dhaayen and Umm Slal.

“Average building prices also varied considerably across municipalities. In Doha the average price reached QR925 per square foot. Al Daayen followed at QR550 per square foot, reflecting increasing demand in the municipality. Al Wakrah recorded an average of QR424 per square foot, while Umm Slal stood at QR453,” the Department said.

“The average price for buildings reached QR442 per square foot in Al Rayyan, QR332 in Al Khor and Dhakira, QR256 in Al Shamal and 262 in Al Sheehaniya during the reporting period,” it added further.

Vacant land prices showed a similar pattern, with Doha leading at an average of QR499 per square foot. Al Rayyan recorded an average of QR367, followed by Al Daayen at QR351. Average land prices reached QR348 in Umm Slal, QR242 in Al Wakrah, QR260 in Al Khor and Dhakira, and QR161 in Al Shamal, reflecting variations in demand, location and development potential across municipalities.

Qatar’s real estate sector has remained a vibrant one, with construction activities rapidly spreading across both established and emerging municipalities. Doha continues to command the highest transaction values, driven by its concentration of commercial developments and premium residential properties.

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With 700 projects worth USD 138 billion, UAE emerges as Gulf’s leading real estate market

International Finance Business Desk — Mon, 06 Jul 2026 03:00:54 +0000

The UAE has emerged as the Gulf’s leading construction market by project volume, with 700 confirmed developments worth an estimated USD 138 billion, according to a new report from the Abu Dhabi Chamber of Commerce and Industry (ADCCI).

The study found that the UAE leads the GCC in confirmed construction demand, supported by a broad pipeline of projects that are either under way or ready for execution. Saudi Arabia follows with 628 confirmed projects valued at USD 168 billion, while Oman ranks a distant third with 85 projects worth USD 19 billion.

In primary construction demand, however, Saudi Arabia remains ahead, with 78 major projects valued at USD 89.5 billion compared with the UAE’s 129 projects worth USD 50.1 billion.

The report highlights a significant transformation in Abu Dhabi’s construction sector, where value creation is increasingly shifting from traditional building activities towards advanced downstream construction systems. These include engineered mechanical, electrical, and plumbing (MEP) solutions, industrialized building methods, and integrated control systems designed to improve efficiency and project delivery.

The transition is being supported by wider adoption of modular and prefabricated construction, low-carbon building materials, artificial intelligence-enabled project management, and fully digital delivery models, reflecting broader global trends in infrastructure and industrial development.

ADCCI Director General Ali Mohamed Al Marzooqi said the emirate’s construction industry is becoming increasingly focused on integration, quality, and delivery certainty rather than simply project size.

He added that stronger private sector participation demonstrates growing confidence in Abu Dhabi’s evolving construction ecosystem and supports the emirate’s ambition to become a global hub for high-value construction and advanced manufacturing.

The sector’s expansion is also reflected in business activity. By February 2026, Abu Dhabi had more than 38,600 active construction licenses, while new business registrations increased by 66% in 2025 compared with the previous year. Active construction memberships also rose by nearly 25%, with new memberships recording a compound annual growth rate of almost 28% between 2019 and 2025.

The report also identifies growing export opportunities across the construction value chain, ranging from raw materials such as clay and limestone to manufactured components including ductwork, valves, switchgear, and power distribution systems.

Supported by improved digital permitting, industrial incentives, and sustainability-focused regulations, Abu Dhabi is positioning itself to compete internationally in high-performance construction systems.

ADCCI said the emirate’s strategic location, logistics network, and expanding industrial base are strengthening its role as a regional center for advanced construction as infrastructure investment across the Middle East and North Africa remains resilient.

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Saudi construction cost growth stays moderate in May, says GASTAT

International Finance Business Desk — Tue, 23 Jun 2026 00:05:58 +0000

In what appears to be an indicator of stable pricing across Saudi Arabia’s real estate sector, the Kingdom’s Construction Cost Index edged up 0.2% in May 2026 from the previous month, according to official data from the General Authority for Statistics (GASTAT).

The index was 2.65 higher than a year earlier, driven by increased equipment rental, labour, and energy costs in both the residential and non-residential sectors. Residential construction costs climbed 2.5% annually, while the non-residential sector recorded a stronger 3% increase.

The increase also coincides with Saudi Arabia’s ongoing push for major infrastructure and tourism projects under its “Vision 2030” socio-economic diversification plan. As per the GASTAT, flagship developments such as Neom, Qiddiya, and the Red Sea Project have continued to generate strong demand for contractors, machinery, and building materials.

“CCI for the residential sector recorded an annual increase of 2.5% as a result of a 4.7% rise in the cost of renting equipment and machinery, driven by a 6.3% increase in the rental of equipment and machinery with operators,” said GASTAT.

“In the residential sector, labor costs rose 2.5%, while energy prices increased by 3%. Basic materials costs went up 1.6% year on year, with timber and joinery prices rising 3.6% and other building materials increasing 2.6%. The non-residential sector’s 3% annual increase was driven by a 6.7% rise in equipment and machinery rental costs, propelled by an 8.5% increase in rentals with operators,” the government agency added further.

“Both labor costs and energy prices increased by 3% year on year across the sector in May. Basic materials costs also rose 1.6%, with other building materials increasing 3.7% and timber and joinery products rising 2.3%. This (monthly increase) is mainly attributed to a 0.2% rise in costs for the residential sector and a 0.3% increase in costs for the non-residential sector,” GASTAT noted.

This increase in construction costs comes amid signs of moderation in Saudi Arabia’s real estate market, particularly in the residential sector. The Kingdom’s real estate price index declined 1.6% in Q1 2026, largely due to a 3.6% drop in residential property prices.

The sustained momentum in Saudi Arabia’s construction sector mirrors broader trends across the Gulf Cooperation Council (GCC), where nations are intensifying efforts to diversify their economies away from oil dependence.

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With deals worth BD597.1 million, Bahrain’s property sector maintains strong momentum

International Finance Business Desk — Tue, 16 Jun 2026 00:04:00 +0000

The real estate sector, through its strong performance, has emerged as the key pillar of Bahrain’s efforts of enhancing its economic competitiveness and strengthening its position as a regional investment hub.

According to the latest indicators released by the Bahrain Survey and Land Registration Bureau (SLRB), the total value of property transactions from the beginning of 2026 through June 11 reached approximately BD597.1 million, validating the sector’s pivotal role in supporting economic growth and driving activities linked to urban development and investment. The number of completed transactions stood at 12,798.

As per the data, April recorded the highest number of real estate transactions for the Gulf nation in 2026, with 2,982 deals completed. While the number of transactions reached 2,364 in May, a minor reduction from the April tally, it still underscored the steady level of activity across the residential, commercial, and investment segments of the market.

Meanwhile, real estate transactions during the first 11 days of June reached BD51.8 million through 1,034 transactions, indicating that market activity remains robust.

“This positive performance comes amid the comprehensive development vision of His Majesty King Hamad and the government strategies led by His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, which focus on diversifying the national economy, strengthening the investment environment and promoting sustainable growth,” SLRB said.

“The sector’s attractiveness has also been reinforced by Bahrain’s advanced legislative and regulatory framework, including the expansion of electronic services, streamlining registration and documentation procedures and enhancing transparency. These efforts have been complemented by the roles played by SLRB and the Real Estate Regulatory Authority in regulating the market and safeguarding the rights of stakeholders,” the authority noted further.

The latest indicators confirm that the real estate sector remains one of the most dynamic pillars of Bahrain’s economy, benefiting from economic stability, modern legislation and ongoing development projects.

In 2025 too, the Gulf country’s real estate market recorded strong growth in transaction activity, despite a decline in prices and rents across several segments, which, in the opinion of the leading real estate industry expert CBRE, highlighted an uneven performance pattern across the sector.

A total of 29,777 real estate deals were recorded for the year, up 19.8% from 2024. The total transaction value, on the other hand, jumped 51.6% to USD 4.2 billion, with both figures marking their highest levels in a decade.

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Sharjah property transactions reach USD 844 million in May, says administration

International Finance Business Desk — Mon, 08 Jun 2026 00:05:37 +0000

In May 2026, Sharjah’s real estate sector recorded transactions worth AED3.1 billion through 7,119 transactions, with the total area traded in sales transactions reaching around 9.5 million square feet, stated the Sharjah Real Estate Registration Department.

“The ownership certificate transactions reached 2,902 transactions, representing 40.8% of the total. These were followed by ownership deed transactions with 2,776 transactions (39%), then mortgage transactions with 718 transactions (10.1%) valued at AED934.7 million,” the data said.

Initial sales contracts accounted for 513 transactions (7.2%), while valuation transactions totalled 210, accounting for 2.95 of the overall transactions.

“Sales transactions were recorded across 115 areas in the emirate, covering residential, commercial and industrial properties. These included 913 land transactions, 683 transactions involving subdivided units and 255 transactions involving developed land,” the Sharjah Real Estate Registration Department remarked.

The highest real estate transaction recorded in Sharjah during May was in “Al Sajaa Industrial”, involving land worth AED 92 million. Meanwhile, “Al Mamzar”, a prominent waterfront neighbourhood located on the northeastern border of Dubai and Sharjah, recorded the highest mortgage transaction involving land valued at AED 80 million.

“Overall, the emirate recorded 1,851 sales transactions during May. Sharjah City accounted for 1,315 sales transactions, with Muwaileh Commercial leading activity at 328 transactions, followed by Al Khan with 218, Rodhat Al Sidr with 158 and Mezairah with 59,” the department observed.

In terms of trading value, “Muwaileh Commercial” ranked first with AED276.6 million, followed by “Al Sajaa Industrial” with AED190.1 million, “Al Menhaz” with AED150 million, and “Tilal” with AED145.3 million.

“In the Central Region, 440 sales transactions were recorded, most of which were concentrated in ‘Al Belaida’ with 133 transactions, while ‘Industrial Area 4’ recorded the highest trading value at AED 77.8 million. In the Eastern Region (Kalba, Khor Fakkan, and Dibba Al Hisn), a total of 96 sales transactions were recorded. ‘Al Mudeifi’ led both in transaction volume, with 29 deals, and trading value, at AED 31.6 million,” the department concluded.

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Canada’s housing sector undergoing declining investment, says report

International Finance Business Desk — Mon, 01 Jun 2026 00:03:03 +0000

Latest data from Statistics Canada, the North American country’s national statistical agency, shows that investment in the housing construction sector is declining. While the country’s real estate sector saw USD 22.6 billion invested in building construction in March 2026, the ratio saw a drop of USD 304.6 million, or 1.3%, compared with February.

“However, the drop was sharper when compared with March 2025, with investment in residential real estate construction dropping 2.2%, while the non-residential sector saw a modest 0.6% increase,” Statistics Canada said.

“In the residential sector, investment in construction dropped to USD 15.5 billion in March, decreasing by USD 345.4 million. While multi-unit housing construction saw a 2.3% decline, single-family homes were not untouched by the downturn, seeing investment decline by 2.1% in March,” the national statistical agency noted further.

Investment in multi-unit construction, on the other hand, was down USD 195.5 million to USD 8.4 billion in March, marking the third consecutive monthly decrease. Investment in single-family home construction reduced USD 149.9 million to USD 7.2 billion.

“Ontario led the declines across the board in residential construction, with investment in multi-unit properties in the province dropping by USD 152.2 million, significantly higher than the province with the next highest drop – Alberta, with a USD 59 million decline,” Statistics Canada remarked.

Ontario also led the decrease in single-family home construction, with investment declining by USD 119.5 million.

The report from Statistics Canada also coincides with the Canada Mortgage and Housing Corporation’s (CHMC) “Housing Market Outlook for 2026”, where the agency said new home construction in the North American country will continue to decline until 2028, citing factors like high costs for developers, weaker demand and more unsold homes.

“In 2025, 259,000 homes began construction across Canada. That number is projected to fall to 247,000 this year, 223,000 in 2027 and 216,000 in 2028. Condominium starts will be especially weak,” CMHC said.

Canada’s condo (privately owned individual unit within a larger residential complex or building) market downturn has entered its fifth year, recent data from real estate research firm Urbanation shows.

“In a typical year, based on the 10-year average, there would be 4,046 condos sold in the Greater Toronto Hamilton Area (GTHA) in the first three months of the year. Between January and March of 2026, that number was 246,” the company noted.

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Here is what Colliers’ report talks about UAE property sector

IFM Correspondent — Fri, 22 May 2026 03:28:41 +0000

As per the Colliers’ UAE Real Estate Market Report for Q1 2026, the property sector in the Gulf country is undergoing a transition period as it moves beyond the exceptional momentum of 2025 toward a more measured, mature phase, supported by strong fundamentals and infrastructure investment.

“Abu Dhabi’s real estate market is evolving toward a more balanced and sustainable growth trajectory. On the supply side, the residential sector maintained a steady delivery rhythm in Q1 2026, with approximately 1,200 units added, while a further 7,000 units are scheduled for completion by year-end,” the report said.

“Development activity also reached record levels, with 22 new projects added to the pipeline, including nine branded residential schemes. In Q1 2026, the rental market transitioned toward a more measured environment, with citywide apartment averages rising 15% year-on-year, while mid-end developments exceeded 20%. The residential villa segment recorded a marginal 1% quarterly increase and 6% annual growth. Notable yearly gains of 7%-10% were sustained in high-quality communities on Yas Island, as well as in specific mid-quality developments such as Al Reef,” it added further.

Talking about the commercial real estate segment, the office market maintained strong performance, with occupancy levels exceeding 95%. Rents across all grades recorded annual growth of between 8% and 20%.

The primary office inventory was bolstered by the handover of Shams Tower on Al Reem Island, with the market currently monitoring the imminent completion of Masdar City Square and The Link, both of which are already capturing robust occupier interest.

As per the Colliers, the trend reflects a continuing appetite for sustainable Grade A workspace within the UAE capital’s core business districts.

“Residential transaction activity in Abu Dhabi continued to accelerate in Q1 2026, with approximately 7,800 deals recorded, reflecting a 10% increase quarter-on-quarter and a 119% surge year-on-year. Average apartment and villa sales prices recorded quarterly growth of 4% and 2% and annual increases of 32% and 21%, respectively,” the agency noted.

A similar trend was seen in Dubai as well, where the real estate market is moving beyond rapid growth into a more mature phase, well-positioned to weather short-term volatility (arising due to the Iran war) on the back of strong fundamentals and ongoing infrastructure investment.

On the supply side, new apartment deliveries exceeded the 10,000-unit threshold for the second consecutive month, while approximately 1,900 villas were delivered during Q1 2026.

“The development pipeline remains substantial, with an additional 65,000 apartments and 12,500 villas scheduled for delivery by year-end, although some deliveries are expected to extend into subsequent periods. During Q1 2026, the rental market demonstrated a robust overall performance, with quarter-on-quarter (Q-o-Q) metrics maintaining a generally positive trajectory,” Colliers’ UAE Real Estate Market Report remarked.

“Average apartment rents grew marginally by 2%, supported by sustained demand in the affordable housing segment. While average villa rates remained stable throughout the quarter, the market showed a more nuanced performance at the community level, with tenants adopting a more value-driven approach,” it noted.

Both the residential and commercial verticals maintained their growth trajectory throughout Q1 2026, though the period was characterised by a notable shift in sector-specific demand.

Off-plan transaction volumes, as per Colliers’, “remained intrinsically linked to the frequency of project launches and subsequent registration timelines”.

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40,000 homes by 2029: Abu Dhabi all set for infrastructure push

IFM Correspondent — Fri, 15 May 2026 00:01:00 +0000

According to the Abu Dhabi Projects and Infrastructure Centre (ADPIC), the authority is currently overseeing more than 500 capital projects across a broader programme value worth USD 200 billion. In 2025, ADPIC advanced approximately AED 32 billion (USD 8.71 billion) in public-private partnership opportunities, with over 40,000 homes set for delivery by 2029 as part of a broader effort to strengthen communities and raise living standards across the emirate.

This information was revealed during a panel discussion at the second edition of the Abu Dhabi Infrastructure Summit (ADIS). The summit, held from 12 to 14 May, saw ADPIC sign 10 memoranda of understanding (MoU) across governance, delivery, and partnership tracks on the opening day itself. The event also set an ambitious agenda for city-scale transformation under the theme “Urban Evolution: Rethinking Cities, Redefining How We Live”.

Maysarah Mahmoud Eid, the Director General of ADPIC, said, “We are moving beyond building cities to creating communities that are more connected, more resilient, and designed around people to improve their lives. No single sector can drive this shift alone. It demands a new kind of collaboration across government, industry, finance, and technology. And that is why ADIS exists.”

At the ADIS summit, two consecutive panels discussed Abu Dhabi’s ongoing efforts to meet the infrastructure demands of rapid urbanisation. “Building at Pace: Planning with Purpose, Delivering for Impact” saw the presence of Carlos Wakim, CEO of Bloom Holding; Adel Albreiki, CEO of Aldar Projects; Mounir Haidar, Co-Founder of LEAD Development; and Francis Alfred, Managing Director of Sobha Realty, with Mustafa Al Rawi, Director of Strategic Communications at the Abu Dhabi Department of Economic Development, moderating the session.

As the discussion examined how modular and offsite manufacturing techniques are compressing project delivery timelines, Sobha Realty confirmed an AED3 billion investment in construction innovation and offsite factories over the next three years.

Bloom Holding, on the other hand, pitched for the separation of technical infrastructure from social infrastructure, pointing to Bloom Living’s 4,200 homes as a model of integrated community design that prioritises walkability, safety, and gathering spaces.

ALSO READ: Abu Dhabi records USD 18 billion in Q1 property transactions

“LEAD Development framed infrastructure as the backbone of place-making, citing Jubail Island’s 40 million sqm of land, 25 million of which is protected mangrove. Aldar pointed to its use of AI agents for design and supply chain scrutiny, drawing on 50 million data points from previous projects, as part of how technology is reshaping delivery,” reported TradeArabia.

Talking about ADPIC’s infrastructure push, the authority has formalised a new partnership under the Bunaa Programme with Trojan Construction Holding, Gulf Contractors, and GHD Global, strengthening the delivery capacity behind the emirate’s capital project pipeline. A separate MoU with Knowledge Group will advance cooperation across training, development, advisory services, and the organisation of conferences and events, with a focus on building national talent and workforce readiness across project and infrastructure-related sectors.

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