On June 18 (UK time), according to The Guardian, the real estate market in Dubai is experiencing a period of significant decline after the conflict in the Middle East broke out, leading to a sharp drop in transactions and selling prices in many segments, especially high-end real estate.
According to market research firm ValuStrat based in Dubai, the number of real estate transactions in May decreased by 19% compared to the previous month, after decreasing by 4% in April. The total number of transactions is currently less than half compared to the same period last year.
Mr. Haider Tuaima - Real Estate Research Director at ValuStrat - said that the completed housing market in Dubai has never recorded such a large year-on-year decline since the COVID-19 pandemic.
Another study by Reidin company shows that the total value of real estate traded in May reached about 22.5 billion dirham (equivalent to 6.1 billion USD), down 42% compared to April. This figure is also only about half of the recorded level before the conflict broke out.
In recent years, Dubai has witnessed a strong wave of investment in real estate thanks to the personal income tax exemption policy, attracting many high-income individuals from around the world.
However, the conflict in the Middle East has created significant impacts on market sentiment. Last March, an Iranian missile fell in the Palm Jumeirah area, which is home to many real estate and luxury hotel projects in Dubai.
According to brokerage companies, many owners of high-end villas and apartments have had to reduce their offering prices by tens of millions of pounds to find buyers.
Mr. Yasin Valimulla - a broker specializing in serving groups of customers owning assets from 10 million USD or more - said that rare transactions that are still carried out today often have prices 20-25% lower than before the conflict occurred.
He also added that many super-rich customers have left Dubai in recent months. According to him, increased concerns after military developments have led many European investors to choose to stay outside the market to observe further.
However, some experts believe that the Dubai market is also entering a correction phase after a period of overheated growth. In 2025, Dubai is the city with the largest number of luxury real estate transactions in the world, surpassing London, New York and Hong Kong (China).
