Iranian Strikes Have Collapsed The Real Estate Market In The UAE
- 6.03.2026, 9:42
Developers are trying to reassure investors.
The United Arab Emirates' real estate market could face a major test following Iranian missile strikes that have called into question the region's image as a safe haven for foreign capital.
According to Reuters.
The UAE's long-running real estate boom could face a serious test after Iranian missile strikes that have undermined the Gulf states' reputation as a safe haven for investment.
The publication notes that the attacks have affected airports, ports and residential areas in Dubai and Abu Dhabi (particularly due to debris from downed drones and missiles - ed.), raising questions about the stability of the region.
According to brokerage Betterhomes, in 2025, about 65% of transactions in the housing market in Dubai accounted for sales at the construction stage. This means that much of the demand depends on the confidence of foreign investors.
After the news of the strikes, shares of major real estate developers fell sharply. In particular, the securities of Aldar Properties and Emaar Properties - the developer behind the development of downtown Dubai and the Burj Khalifa skyscraper - fell in price by about 5%.
In addition, developers' bond yields have risen sharply, effectively closing the debt financing market to new placements.
Investors are trying to reassure
Despite the Iran attacks, some developers are trying to reassure investors. The CEO of luxury real estate developer Dar Global Ziyad El-Chaar said the Persian Gulf country's economic fundamentals remain strong and all of the company's projects are proceeding as planned.
But bankers and market participants say the effects are already being felt. Some companies have postponed plans to raise financing, and investors have become more cautious due to rising risks in the region.
Reuters recalls that the boom in the UAE real estate market significantly intensified after the COVID-19 pandemic - then the country attracted wealthy foreigners due to the absence of income tax, liberal visa rules and favorable business climate. After the start of Russia's full-scale war in Ukraine, Russian businessmen and investors also actively started moving to the country.
According to experts, if geopolitical tensions persist, international lenders may reduce financing for new projects, which will be a serious challenge for the real estate sector.