Key brokers and real estate developers in Dubai's real estate market say that they expect the bull run of sales to slow in the next few weeks and months, as another round of strikes and retaliatory actions between the United States, Israel, and Iran play out, with Iran targeting US military bases located in a number of Gulf Cooperation Council countries, including in the United Arab Emirates.
Dubai's real estate market saw a record sales value of around $187 billion for 2025 across more than 215,000 transactions, with deals driven by luxury property sales, and increased purchases by Indians and other nationals. Brokers added that Dubai is often a safe place to park investments during conflicts elsewhere in the world, with an influx of Russian and Ukrainian investors after Russia's invasion of its western neighbour in 2022.
Similarly, brokers said that Pakistani and Afghan high-net worth individuals have also made real estate investments in Dubai in the wake of tensions and full-scale fighting between the two countries recently.
Social media footage showed that a number of missiles fired by Iran towards military bases in these countries were intercepted by local security forces, although some areas, such as those in Abu Dhabi, saw some impact due to Iranian airstrikes. UAE's state media reported that one person died as a result of the strikes.
In Dubai, where large-scale real estate purchases by Indian nationals, as well as nationals of countries such as UK, Russia, and elsewhere have driven the market to new highs, locals said that the situation largely remained calm, despite occasional noises of airstrikes. Dubai's authorities said that a building at the Palm Jumeirah development was hit as a result of the airstrikes, with four injuries being reported.
Reports also stated that the Burj Khalifa, the world's tallest building, was evacuated as a precautionary measure. Moneycontrol has written to Emaar, the building's developer, for confirmation on the matter.
"The situation remained largely normal, and we are waiting to see if this is a short conflict like the one in mid-2025, or it spirals into a full-scale war," said a real estate broker based in the city.
However, he also noted that the market is already expecting some impact of the conflict to play out over the next few months, as fence-sitters may choose to wait for the situation to settle down before exploring real estate deals. He added that the temporary closure of Dubai's two airports- Dubai International Airport and Al Maktoum International Airport- may also impact sentiments, due to the former's status as a global aviation hub.
Other brokers added that while momentum may slow in the next few weeks, it does not expect any major movement in prices.
"Real estate transactions in Dubai are monitored and data is regularly released on the number and value of transactions. There has been some oversupply coming into the market, we do not expect any major changes in residential prices in the city, and prices are expected to be stable going ahead, even as we expect some issues if the current conflict drags on," said Chintan Vasani, founder, Wisebiz Realty.
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