Dubai housing sales plunge 25% amid escalating Middle East conflict
Housing sales in Dubai have dropped 25% since the escalation of tensions between Iran, the US, and Israel late last month, while the Dubai Financial Market Real Estate Index has fallen by more than 25% over the same period, Anadolu reports.
The conflict has slowed activity across key Gulf sectors, including energy, trade, logistics, finance, and tourism.
In the first 20 days of the war, the scale of disruption became increasingly clear, with Dubai’s real estate market among the hardest hit. The crisis began on February 28 with US and Israeli strikes on Iran, followed by Iranian retaliatory attacks.
Long seen as a global hub for tourism and property investment, Dubai had attracted international buyers with strong returns and tax advantages. However, the widening conflict has dampened housing demand.
According to DXB Interact data, sales fell to 6,129 between March 2 and 16, down from 8,199 in the February 16 - March 1 period - a 25% decline.
Transaction volumes also dropped 25.7%, sliding from $7.55 billion to $5.61 billion. Meanwhile, the Dubai Financial Market Real Estate Index, which tracks listed property firms, has lost more than a quarter of its value in the past month.
Experts note that a prolonged conflict could erode international investment and put further pressure on the sector.
Earlier, Qazinform reported that Kazakhstan’s airline FlyArystan announced it temporarily suspended Aktau-Dubai-Aktau flights until March 31, 2026, inclusive, due to the instability in the Middle East and the existing restrictions in the region.