Steve stated that his new apartment is more spacious, closer to work, and its rent is 15% cheaper. "When I moved to Dubai in 2025, finding an apartment in this area was very difficult. Rents had increased sharply," said Steve, 35. He currently works in media there.
Real estate is a pillar of Dubai's economy. The market has seen strong growth in recent years, attracting international ultra-high-net-worth individuals drawn to the luxurious lifestyle in this emirate.
However, the Middle East conflict, which erupted in late february, halted the growth momentum. Dubai was even targeted in the early days of the conflict, as Iran retaliated against US allies in the region.
Even renowned landmarks, such as the Burj Al Arab hotel and the Palm Jumeirah artificial islands, were affected. This dealt a significant blow to a city where over 90% of the population consists of expatriates.
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A view of the Burj Al Khalifa tower in Dubai, december 2022. *Photo: Reuters* |
After a ceasefire in april, fighting resumed in july. To date, Dubai has not been a target of attacks. However, Dubai's image of "safety despite volatility" has not yet recovered from the shock, a real estate broker noted.
"We are in a gray area. Client perspectives vary. Some believe this situation will lead to long-term regional instability, while others see it as an opportune time to invest," she said.
The broker confirmed that clients have not entirely disappeared, but there is now more room for price negotiation. "Since the conflict began, the advantage has shifted from sellers to buyers," she observed.
UK-based real estate consultancy Knight Frank reported "a 5-20% decrease in housing prices across Dubai's affordable segment, depending on the area." Previously, prices had surged by 82,9% since 2021. The market has been impacted multiple times, notably during the 2008 financial crisis and the pandemic.
Nevertheless, real estate group Emaar announced a 55 billion USD project in central Dubai last month, expected to attract around 150,000 residents. This demonstrates confidence in the market's recovery potential.
Another major real estate firm, Binghatti, reported selling two luxury apartments in the city center in june for 54 million USD and 19 million USD, respectively.
According to a Betterhomes report based on official data, the total value of real estate transactions in Dubai in Q2/2026 decreased by 45% compared to the same period last year. The luxury real estate segment was the most severely affected.
However, Betterhomes CEO Richard Waind stated that the situation has improved in recent weeks. "We started seeing demand pick up again from june and it has continued this month, both in terms of buyers and closed transactions," he told AFP.
According to him, current demand primarily comes from residents living in Dubai, rather than foreign investors. However, he also noted that this period annually is typically a quiet season for the market. Investment activity is expected to "recover after summer ends."
Ha Thu (AFP)
