Dubai's Real Estate Market Remains Steady Amid Middle East Conflict
Despite the ongoing Middle East conflict, Dubai's real estate market has shown remarkable stability. With repeated missile and drone attacks from Iran, one might expect a decline in property prices. However, developers and brokerage firms are offering incentives to attract buyers, keeping the market steady.
Incentives to Attract Buyers
- Extended Payment Plans: Developers are offering extended payment plans, often by four to six months, depending on project completion.
- Fee Waivers: Brokerage fee discounts of around 2% and 4% Dubai Land Department registration fee waivers are being offered.
- Luxury Cars: Damac Properties is giving away luxury cars to buyers of under-construction properties above AED 1.5 million between March 12 and March 31 as part of an Eid promotion.
Transaction Data
According to Dubai Land Department data, property transactions worth AED 23.97 billion (roughly Rs 60,000 crore) have been recorded since the onset of the conflict. However, transaction volumes have declined 14% year-on-year between March 2 and March 16.
High-Value Sales Continue to Dominate
- A six-bedroom under-construction ultra-luxury apartment in Jumeirah Second sold for AED 422 million, marking one of Dubai's most expensive apartment deals.
- A ready six-bedroom villa on Palm Jumeirah's Frond G sold for AED 95 million.
- A five-bedroom under-construction apartment in the same area went for AED 92.5 million.
Industry Insights
Industry insiders say most of these deals were agreed upon prior to the conflict and are only being registered now. Amit Goenka, managing director of Nisus Finance, explained that it is hard to renege on deals agreed to earlier owing to the cost involved.
Developers Maintain Base Prices
Developers are keeping base prices intact but are providing buyers with waivers and extended payment plans. Anuj Puri, chairman of ANAROCK Group, said that developers have rightly chosen to maintain price stability while offering waivers and extended payment plans.
Indian Buyers Remain a Significant Force
Indian buyers remain a significant force in the Dubai real estate market, accounting for 23% of foreign residential transactions in 2025, up from 12% in 2023.
Market Outlook
A clearer picture on the real estate market will emerge in April or May, regarding the number of transactions and deal value. Industry experts predict that the market will continue to support the current stable prices, with stronger regulations and residency programmes, such as the 10-year Golden Visa, helping to prevent a repeat of the 2008 crash.