Housing sales in Dubai have fallen 25 percent since the escalation between Iran, the U.S. and Israel began late last month, while the Dubai Financial Market Real Estate Index has dropped by more than 25 percent over the past month.
The conflict has triggered a marked slowdown across key sectors in Gulf economies, particularly energy, trade routes, logistics, finance, and tourism.
In the first 20 days of the war, the scale of economic disruption across the region became increasingly evident. Dubai’s real estate sector has been negatively affected by the crisis, which began with U.S. and Israeli attacks on Iran on Feb. 28 and continued with Iran’s retaliatory strikes.
Long regarded as a global hub for tourism and property investment, Dubai had attracted international buyers with high returns and tax advantages, but the widening conflict has weighed on housing demand.
According to DXB Interact data, housing sales fell to 6,129 in the two weeks between March 2 and 16, down from 8,199 in the Feb. 16-March 1 period – a 25 percent decline.
Transaction volume also dropped 25.7 percent, from $7.55 billion to $5.61 billion over the same period.
Meanwhile, the Dubai Financial Market Real Estate Index, which tracks listed property companies, has declined by more than 25 percent in the past month.
Experts say the drop in transactions has not yet translated into price declines, but warn that prolonged conflict could reduce international investment.
