Dubai real estate market shows signs of weakening amid US-Israel-Iran conflict
The Dubai real estate market has begun to show early signs of weakening nearly three weeks after the outbreak of the US-Israel-Iran war. Analysts report a sharp decline in transaction volumes, and some realtors are noting a drop in prices.
According to estimates by Goldman Sachs published this week, the volume of real estate transactions in the UAE during the first 12 days of March fell by 37% compared to the previous year and by 49% compared to the prior month. Realtors on social media and in interviews with journalists say that some properties are now being sold with discounts of 12–15%.
For example, a seller of an apartment near Burj Khalifa reduced the price from $735,000 to $650,000, citing “the current situation.” A developing apartment on Palm Jumeirah island was also offered at a 15% discount, around $2 million.
Before the conflict, experts warned of a possible slowdown after five years of price growth. This crisis has become a serious test for the market, which had been thriving due to a flow of wealthy immigrants attracted by a tax-free regime.
Given recent events, Dubai’s real estate market may face further price corrections. The situation remains fluid, and future developments will depend on political developments and the state of the global economy.
Market participants are expected to monitor the situation closely, with analysts forecasting a period of instability until the conflict is resolved.
