Dubai’s real estate brokers and developers anticipate a slowdown in the recent surge of property sales due to escalating tensions involving the United States, Israel, and Iran. The missile attacks on US bases in Gulf Cooperation Council (GCC) countries have shattered the perception of Dubai as a safe haven during conflicts, prompting investors from Russia, Ukraine, Pakistan, and Afghanistan to adopt a cautious stance.
Buyers are expected to adopt a wait-and-see approach until there is clarity on the potential escalation of the conflict. While transaction volumes might decrease, significant price drops are not foreseen in the immediate future. In 2025, Dubai witnessed a historic sales value of approximately $187 billion through over 215,000 transactions, driven by luxury property sales and heightened interest from Indian and other foreign buyers.
Recent video footage circulating on social media platforms depicted Iranian missiles and drones being launched towards military bases and critical infrastructure, with local forces intercepting the attacks. State media in the UAE reported a fatality linked to the strikes, along with an incident at the Palm Jumeirah development where a building was hit, resulting in four injuries. Reports also mentioned a precautionary evacuation of the Burj Khalifa, the world’s tallest building.
Amidst the escalating tensions, the Islamic Revolutionary Guard Corps (IRGC) announced a fresh wave of attacks targeting US and Israeli military installations across the Middle East as retaliation for recent strikes that claimed the life of Supreme Leader Ayatollah Ali Khamenei. Speculation regarding the succession of power within Iran’s administration has emerged following Khamenei’s death, with reports suggesting his second eldest son, Mojtaba Khamenei, as a potential frontrunner.
