Dubai real estate prices hit low following regional conflict

The Dubai real estate market experienced a significant downturn following the outbreak of conflict in Iran in late February. The market saw a complete freeze in March, with transaction volumes in April dropping approximately 80 percent compared to February levels.

Property prices for used homes have fallen 10 to 20 percent from February peaks. The off-plan segment, which previously accounted for two-thirds of the market, now represents 45 to 50 percent. Developers are currently offering discounts between 2 and 7 percent, with potentially higher incentives for larger upfront payments.

While new projects in premium locations have stalled since March, development is concentrating in suburban areas. Current prices range from approximately 1.4 million HUF to 4.7 million HUF per square meter, with the higher end seen in new projects on Palm Jumeirah. Experts anticipate a period of sideways movement followed by gradual recovery, with prices potentially returning to pre-conflict levels within one to two years.