As the US enacts a new wave of tariffs on steel and aluminium imports, the UAE real estate market, particularly Dubai, stands out as a resilient and strategic investment destination, according to a new report from Betterhomes, Will Trump’s Tariffs Impact UAE Real Estate?

Despite the imposition of a 25% tariff on metal imports into the US, impacting global supply chains, Dubai continues to attract sustained foreign investment.

The report highlights the emirate’s unique positioning as a global trade hub, supported by a diversified economy, forward-looking government strategies, and an ongoing infrastructure boom.

Macroeconomic Strength Underpins Investor Confidence

The UAE’s macroeconomic fundamentals remain strong in the face of global volatility. Key drivers include a growing tourism industry (with Dubai welcoming 19 million visitors in 2024), a national population of 12 million, and over 3,500 active infrastructure and real estate projects.

While the US tariffs present challenges to non-oil sectors globally, the UAE’s export of 350,000 tonnes of aluminium to the US in 2024 underlines its strategic role in critical industries such as aerospace, real estate, and automotive.

Dubai’s Real Estate Strategy 2033 and the federal ambition to double FDI inflows to $65 billion by 2031 reflect the UAE’s robust economic roadmap.

Continued high oil production, set to reach 3.27 million barrels per day by 2026, combined with a AED 71 billion federal budget focused on infrastructure and social development, ensures long-term economic stability.

Dubai's Real Estate Surges as Investors Seek Stability

The report reveals that Dubai’s real estate market remains a magnet for global investors from India, Europe, China, and Pakistan. Betterhomes recorded a 23% month-on-month increase in April 2025 transactions, reaching AED 46 billion.

Notably, investor interest from the US and China spiked by over 40%, while related web traffic surged by 60%, signalling a growing appetite for Dubai real estate amidst global uncertainty.

“We’ve seen a noticeable shift since the tariffs were announced. Interest from the US and China is up by more than 40%, and website traffic from those markets has surged by 60%. It’s clear that investors are seeing Dubai as a stable and strategic place to put their capital,” said Louis Harding, CEO at Betterhomes.

A Resilient Outlook Ahead

Despite slowing global growth forecasts, Dubai’s real estate market benefits from diversified demand, government-backed infrastructure, and record-high millionaire migration.

With 90% of villa and townhouse communities facing excess demand, property values are expected to continue their upward trajectory.

As the global economy recalibrates, Dubai stands as a beacon of stability and opportunity for investors worldwide.