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UAE's property sector faces reckoning after Iran strikes
Iranian missile strikes on Dubai and Abu Dhabi raised UAE property risk premiums, causing developer shares to fall 5% and halting new bond issuances, analysts said.
On March 4, the UAE's property market was hit by Iranian missile strikes, puncturing stability and rattling investors as Dubai and Abu Dhabi developer shares plunged with a 5% market drop.
With off‑plan sales dominating 2025 transactions, off‑plan deals made up 65 per cent of Dubai transactions and expatriates formed nearly 90 per cent of the UAE's 11 million population.
Bond markets for developers have effectively shut, with spreads widening, a senior real-estate banker said his firm shelved a planned capital raise this week, while Ziad El Chaar, CEO of Dar Global, said 'Nothing is on hold... everything is on track'.