The implementation of President Trump’s aggressive tariff policies has triggered an unexpected windfall for the UAE real estate market, as international investors seek refuge in the region’s stable and tax-friendly environment. The recent introduction of a 10% universal basic tariff on U.S. imports, coupled with punitive rates reaching up to 145% for specific countries, has prompted a significant shift in global investment patterns.
The UAE, particularly Dubai and Abu Dhabi, has emerged as a prime beneficiary of this global economic reshuffling. The Emirates have witnessed a substantial surge in property investments, with transaction volumes increasing by 36% and values rising by 27% compared to 2024.
The total real estate transactions across the UAE reached an impressive AED 893 billion (US$243 billion) in 2024, encompassing over 331,000 deals.
Foreign investors are particularly drawn to the UAE’s attractive proposition of high rental yields, averaging 6.2% in Dubai and 6-7% in Abu Dhabi, significantly outperforming traditional investment destinations like London or New York.
The market’s appeal is further enhanced by the UAE’s strategic advantages, including the following —
- a strong economy
- minimal dependence on U.S. supplies
- a favorable tax environment with a profit tax of just 9%
- no personal income tax liability
The impact of Trump’s tariffs has been especially notable in the luxury property sector, where Dubai’s premium property market is projected to grow by 5% in 2025. This growth is driven by an influx of capital from regions heavily affected by the tariffs, including Europe and Asia, where investors are actively seeking alternative markets.
Institutional investors have also recognized the UAE’s potential. About 90% of luxury real estate fund investments now come from institutional sources, of which 80% are international.
Major financial institutions like BlackRock have expanded their operations to Abu Dhabi, underlining the UAE’s growing prominence as a global financial hub.
The UAE’s property market resilience is further supported by investor-friendly policies, including —
- long-term visas for investors and retirees
- relaxed property ownership laws
As global markets adjust to the new trade dynamics imposed by Trump’s tariffs, the UAE’s position as a neutral business hub and investment haven appears set to strengthen further, particularly among investors seeking to mitigate the impact of U.S. trade policies on their portfolios.