Dubai Real Estate Deals Face Delays Amid Escalating Middle East Tensions

Dubai Real Estate Market Expecting Slowing Sales

The Dubai real estate market, which saw a record sales value of $187 billion in 2025 across 215,000 transactions, is expected to slow in the next few weeks and months due to the escalating conflict between the United States, Israel, and Iran. Brokers and real estate developers attribute the market's previous success to luxury property sales and increased purchases by Indians and other nationals, as well as a safe-haven effect for investors from countries like Russia and Ukraine.

Key Drivers of the Market

Dubai's real estate market has been driven by large-scale purchases by Indian nationals, as well as nationals from countries such as the UK, Russia, and others. The influx of high-net worth individuals from countries experiencing conflict, such as Pakistan and Afghanistan, has also contributed to the market's growth.

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Impact of Conflict

The conflict has resulted in Iranian airstrikes targeting US military bases in the UAE, including in Abu Dhabi, where one person died as a result of the strikes. While the situation in Dubai remains largely calm, with occasional noises of airstrikes, the situation is expected to impact the market. A building at the Palm Jumeirah development was hit, resulting in four injuries, and the Burj Khalifa, the world's tallest building, was evacuated as a precautionary measure.

Market Outlook

Brokers expect the market to slow in the next few weeks and months, with fence-sitters waiting for the situation to settle down before exploring real estate deals. The temporary closure of Dubai's two airports may also impact sentiments, given the former's status as a global aviation hub. However, brokers do not expect any major movement in prices, citing an oversupply of properties in the market. Chintan Vasani, founder of Wisebiz Realty, stated that prices are expected to remain stable, even as the conflict drags on.

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