Dubai’s real estate market is once again facing a serious test. Despite heightened geopolitical tensions in the Middle East, the market continues to demonstrate resilience, while investors maintain interest in the emirate as one of the world’s key financial and business hubs.
A Market That Has Already Survived Multiple Crises
In 2025, the population of the United Arab Emirates exceeded 11 million people. Around 90% of Dubai’s residents are foreigners who choose the emirate for its stability, security, and economic opportunities.
Dubai’s real estate market has already faced major challenges in the past. It successfully weathered the global financial crisis of 2008 and the COVID-19 pandemic. In both cases, recovery was supported by government economic policy and large-scale investments in infrastructure.
The UAE’s stable regulatory environment and long-term economic prospects continue to support interest fr om both regional and international investors.
According to Springfield Properties, in February 2026 Dubai recorded 15,369 residential property transactions worth a total of AED 45.39 billion. Compared with February last year, this represents an increase of 2.51% in the number of transactions and 9.59% in total value.
Tauseef Khan, Chairman of Dugasta Properties, said in an interview with Khaleej Times:
“The UAE continues to stand out thanks to its strong regulatory framework, commitment to safety and stability, and a diversified economy that supports long-term growth.”
According to him, the company’s latest project in Majan, valued at around $100 million, has already sold 40–50% of its units.
“This level of demand at an early stage shows that buyers remain active in the market despite broader geopolitical uncertainty,” Khan said.
Buyers Are Becoming More Cautious
While interest in Dubai real estate remains strong, the behavior of buyers is changing. Brokers say investors are approaching the market more cautiously.
According to brokerage firm Betterhomes, the number of buyer inquiries is currently around 45% lower than usual, although activity on digital platforms remains stable.
Betterhomes CEO Louis Harding explains that this reflects a more thoughtful decision-making process rather than a slowdown in the market.
“Over the past four decades Dubai has experienced many global events and market cycles.”
“We are seeing that people, understandably, are taking more time to make decisions, but the interest is still there.”
Dubai Continues to Attract Skilled Professionals
Research by eXp Dubai shows that the real estate market continues to provide housing opportunities for professionals relocating to the city.
One-bedroom apartments account for 44.8% of all properties listed for sale in Dubai. In the serviced apartment segment, they represent 89.8% of listings, while in the affordable housing segment apartments account for 56.1% of available supply.
Dounia Fadi, Managing Director of eXp Dubai, said:
“For many professionals relocating to Dubai, purchasing a suitable first home is an important step in establishing themselves both personally and professionally.”
A New Wave of Migration and Rising Demand for Golden Visas
The escalation of tensions in the region has led to increased interest in long-term residency in the UAE.
Applications for the Golden Visa have risen sharply. In March 2026, buyers from Lebanon and Israel joined the traditional groups of investors from Russia and India.
Experts from Cavendish Maxwell emphasize that Dubai’s status as a safe haven for global capital has been built over many years through residency reforms and infrastructure development. According to them, the current situation does not lead to capital flight but rather to a redistribution of capital.
Investors who have already invested hundreds of millions of dollars in penthouses view the situation as a short-term risk rather than a systemic collapse.
Luxhabitat reported a moderate drop in international interest on online platforms immediately after the Iranian attacks began, but activity started to recover by March 3.
Citizenship specialists from Henley & Partners note that high-net-worth families make relocation decisions strategically and typically factor geopolitical risks into their long-term plans.
Dubai Strengthens Its Role as a Global Financial Center
For years, the UAE has pursued a strategy of diversifying its economy and reducing its dependence on oil.
Alongside Qatar and Saudi Arabia, the country has invested trillions of dollars of sovereign capital into global finance, technology, artificial intelligence, and infrastructure.
According to Henley & Partners, nearly 10,000 millionaires moved to Dubai in 2025, bringing with them approximately $63 billion in wealth.
The Dubai International Financial Centre is now home to 120 family offices managing about $1.2 trillion in assets.
Dubai has also become a key platform for deals involving Gulf sovereign wealth funds, and the number of hedge funds with offices in the city doubled last year.
Capital and Global Banks Continue to Move to Dubai
According to Bloomberg, Dubai continues to attract wealthy individuals from around the world as well as banks and asset managers from Wall Street.
Boston Consulting Group reports that the UAE ranked among the fastest-growing centers for attracting financial assets in 2024, with about $700 billion in foreign capital flowing into the country.
Jan Mrazek, managing partner at Dubai-based consulting firm M/HQ, said that about a quarter of the more than 2,270 funds registered in the UAE have Asian ownership.
According to the Dubai International Chamber, 47% of multinational companies attracted to Dubai in 2025 came from Asia.
Major financial institutions are also expanding their presence in the emirate, including Japan’s Nomura Holdings and Singapore’s largest banks DBS Group and Oversea-Chinese Banking Corp.
The UAE is also becoming an increasingly popular destination for wealthy residents of the United Kingdom as the country considers raising taxes for high-income individuals.
Among prominent figures connected to the region are Aston Villa co-owner Nassef Sawiris, Indian entrepreneur Shravin Mittal, and Michael Platt, founder of Bluecrest Capital Management.
Financial Markets React to Regional Tensions
At the same time, regional tensions have had a short-term impact on financial markets.
After trading resumed, the Dubai Financial Market General Index fell 4.7%, marking its sharpest decline since May 2022. Despite this drop, the index remains more than twice as high as it was at the beginning of 2020 thanks to strong economic growth and the expansion of the real estate sector.
Some investors are temporarily reducing exposure to the region, while others see the situation as a buying opportunity.
Multipolitan CEO Nirbhay Handa said:
“If uncertainty lasts for several weeks, some companies may temporarily pause expansion.”
“Stability will likely return to Dubai quickly as the situation improves.”
What Lies Ahead for Dubai’s Real Estate Market
According to Betterhomes, 65% of all property transactions in Dubai in 2025 involved off-plan real estate. This segment could be particularly sensitive to changes in international investor sentiment.
Following the recent events, shares of major developers declined. Stocks of Aldar Properties and Emaar Properties fell by about 5%, while the bond market for developers temporarily slowed.
Dar Global CEO Ziad El Chaar said:
“In this region we know that events develop quickly and end quickly, and we overcome them because the fundamentals of the GCC countries are strong.”
“Nothing has been paused… everything is proceeding according to plan.”
Property Prices Continue to Rise
Despite short-term volatility, the long-term trajectory of Dubai’s property market remains strong.
According to Fitch, property prices in Dubai increased by 60% between 2022 and the first quarter of 2025.
Data from CBRE shows that residential property prices grew nearly 13% year-on-year in the fourth quarter of 2025. In Abu Dhabi, prices increased by almost 32% during the same period.
Mohammed Ali Yasin, CEO of Ghaf Benefits, commented:
“The real impact on the real estate market should be assessed by the level of demand after the conflict ends. That is wh ere the true impact will be felt.”
Economists at Abu Dhabi Commercial Bank also emphasize that foreign demand will be crucial.
“Foreign interest in buying property after the conflict will be decisive.”
Signs of Market Recovery
Recent data suggests that market activity is already beginning to recover.
According to the Dubai Land Department, between March 2 and March 9 there were 3,570 property transactions totaling AED 11.93 billion ($3.24 billion).
Lewis Allsopp, Chairman of Allsopp & Allsopp, said:
“I have been closely studying the data over the past ten days, and what is especially encouraging is that viewing activity over the last three days has increased by 75 percent compared with the first three days of regional unrest — a clear sign of returning confidence among buyers and renters.”
According to the company, buyers continue to sign off-plan purchase agreements and are not backing out of commitments made before the conflict.
“We are not seeing people walk away from commitments they have made. I expect developers may become creative with payment plans to maintain momentum, but I would be very surprised to see any change in price per square foot. The fundamentals remain stable.”
Dubai Relies on Economic Resilience
UAE leadership has expressed confidence that the country will overcome the current challenges.
President Sheikh Mohammed and Vice President and Ruler of Dubai Sheikh Mohammed bin Rashid said the UAE has the “determination and capability” to overcome all challenges in the face of ongoing Iranian attacks.
They emphasized that the Emirates remain a safe and stable place for business and investment.
In 2025, the number of real estate transactions in Dubai exceeded 270,000, which is 20% higher than in 2024. The total value of these deals rose 20% year-on-year to AED 917 billion, according to the Dubai Land Department.
Springfield Properties CEO Farooq Syed said:
“Dubai’s long-term fundamentals remain unchanged, supported by continued infrastructure investment, expansion of integrated master-planned developments, and flexible developer payment structures that continue to sustain transaction activity, particularly in the off-plan segment.”
Mohammad Jafri, Chief Operating Officer of Provident Estate, added that the resilience of Dubai’s real estate market is supported by
“strong banking liquidity, institutional crisis-management capabilities, a diversified economic base, long-term urban planning, and sustained confidence from international investors.”