US EditionDubai property sector shows early signs of weakness
Transaction volumes fell 49% month-on-month with some properties discounted 12-15% as the conflict deters investors and challenges Dubai's safe haven reputation, Goldman Sachs said.
- On March 20, Reuters reported Dubai's property market shows early weakening nearly three weeks into the U.S.-Israeli war on Iran, with analysts noting sharply lower transactions and some price cuts up to 15%.
- The war and Tehran’s strikes have pierced Dubai's image as a safe haven, and analysts at Citi say it introduced "considerable risk", lowering population growth forecasts to 1% this year.
- Data show real-estate transaction volumes fell 37% year-on-year and 49% month-on-month this month, with price cuts of 12-15% and a seller near Burj Khalifa dropping from $735,000 to $650,000.
- Executives on the ground say market activity has not stopped, with investors and family offices seeking discounted listings and a circa-$25 million Palm unit sold to Francis Ngannou this week.
- Looking ahead, models suggest that in their bearish case for Dubai, property prices could drop by an average of 7% annually between this year and 2028, according to analysts.
27 Articles
27 Articles
West Asia crisis: Dubai real estate sector shows early signs of weakness
Dubai's property market shows early signs of weakening amid the US-Israeli war on Iran. Transaction volumes have fallen significantly, and some properties are offered at discounts. Analysts predict a slowdown and potential price drops. However, market activity has not stopped, with some investors seeking distressed deals. Developers remain optimistic about long-term value.
Drones over skyscrapers, alarm in the malls: The Iranian attacks endanger Dubai's business model. On the net, a lot of gloating – but what is the situation really like? Our reporter talked to people on the spot.
Dubai property sector shows early signs of weakness
Dubai's property market is beginning to show early signs of weakening nearly three weeks into the U.S.-Israeli war on Iran, with data from analysts showing tanking transaction volumes and some real estate agents pointing to price reductions.
Dubai is under pressure. What to expect if the war doesn't end soon?
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