🔻Agence France-Presse: War has halted the boom in Dubai’s housing market

Reports indicate that after several years of rapid growth, Dubai’s real estate market has been hit by the war in the Middle East, facing reduced demand and lower rental prices.

“Steve,” a 35-year-old British citizen who works in media, told Agence France-Presse that by taking advantage of the new market conditions, he managed to move to a larger apartment closer to his workplace, whose rent is 15% lower than his previous home. He spoke under a pseudonym because of the sensitivities of the issue in the United Arab Emirates.

According to him, when he arrived in Dubai in 2025, finding a home in this area was very difficult, and rental prices were rising quickly.

The growth of Dubai’s property market in recent years had been boosted by the influx of migrants and wealthy people drawn by the city’s quality of life, extensive services, and favorable tax system.

But since the start of attacks by the United States and Israel on Iran on February 28 and retaliatory strikes in several countries on the shores of the Persian Gulf, activity in this market has slowed.

At the beginning of the war, prominent sites such as the Burj Al Arab hotel and the artificial Palm Jumeirah island were targeted—attacks that surprised Dubai’s population, which is made up of roughly 90% foreigners.

A real estate agent who did not want to be named told Agence France-Presse that although Dubai has not been targeted since hostilities resumed in early July, the war has damaged the image of the city as a place that is “safe in any circumstance.”