UAE developers shift focus to funded projects nearing completion, says report

The slowdown in the UAE real estate market is prompting homebuilders to prioritise master-planned projects that are well advanced in funding and completion and have high pre-sales rates, Fitch Ratings said in its latest note.

The global rating agency noted that the larger homebuilders are better placed to sustain this business model.

Following a strong rally spanned over five years, the growth of the UAE real estate sector is cooling as the market matures. In addition, the regional conflict is also influencing the property market, prompting developers to re-think their strategies about the completion of their ongoing and upcoming projects.

Residential transactions in the UAE declined 19 per cent quarter-on-quarter in the second quarter of 2026, with new launches also much lower, according to Diego Della Maggiore, a director in Fitch Ratings’ EMEA Real Estate team.

“Issuers have adapted to the current market environment by prioritising projects that have achieved certain thresholds in funding, capex and pre-sale rates,” he said.

Maggiore noted that larger developers such as Emaar and Majid Al Futtaim can launch large master-planned schemes and then release units in stages, helping to match sales with execution capacity.

He added that smaller developers may find this more difficult, especially if land, construction and financing costs stay high..

Fitch noted that Omniyat continued to focus on execution and funding in 2026, while also signalling a potential expansion into Abu Dhabi through a planned large-scale project. This suggests that stronger developers can still pursue targeted growth even as broader launch activity remains restrained, Fitch said.

Maggiore added that some homebuilders are accelerating the construction of pre-sold standalone units as they’re selectively.

According to Fitch Ratings, large developers will likely continue to favour “big-ticket” phased projects if sales absorption remains firm, population inflows continue, and infrastructure-led areas such as Dubai South keep attracting demand. If demand softens or execution bottlenecks ease, launch activity could broaden again across mid-sized schemes.

“We expect the current trends to continue in phases, rather than through a steady fall in total supply,” Della Maggiore said. The market may see fewer headline launches, larger project sizes and longer delivery schedules, while actual unit releases remain staggered over time, he added.

Fitch said its original view highlighting oversupply risks still stands, but it is now exacerbated by weaker demand.

Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.