Panic sales in the Dubai housing market have not yet been observed, but some current deals have been suspended, as buyers hope for a renegotiation of conditions, including the price.
According to Morgan Owen, managing director of the ANAROCK Group for the Middle East and North Africa, the Dubai real estate market can recover quickly after the slowdown caused by the escalation of the conflict between Iran, the United States and Israel.
If the tension lasts for another 4 to 8 weeks, but the employment rate, mortgage availability, and air service remain stable, the market will see positive dynamics. Owen expects that 60 to 80% of the deals that are currently in limbo will be completed in the next quarter. However, the expert clarifies that some of them will probably require a review of prices or conditions.
The history of the Dubai market shows that in times of crisis, deals are more often postponed rather than canceled. After the COVID-19 pandemic, activity recovered in 12-18 months, and in some areas, price increases from 2020 to 2025 reached 165%. However, the expert warns that a simple "buy at the bottom" strategy does not work. A thoughtful approach to choosing an asset is important.
If security concerns in the region become chronic, the expert admits a "small but significant" outflow of capital from Dubai to other countries. However, the proven advantages of Dubai (taxes, "golden visas") make a sudden capital outflow unlikely.
Source: Hindustan Times
