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UAE’s global property hotspot, Dubai, recorded roughly $4 billion in transactions within a week even as Iran's continuous missile and drone attacks sparked concern across the country, according to official data.
Data from the Dubai Land Department showed that investors purchased 3,675 housing units, 444 buildings and 395 plots between Feb. 28 and Mar. 11, 2026. Residential flats accounted for most of the deals across Dubai’s districts, particularly in large suburban and mixed-use communities.
In Dubai’s luxury and waterfront districts, Palm Jumeirah, one of Dubai’s main beachfront residential areas, recorded transactions totaling AED 434.3 million ($117 million) days after a Shahed-type drone strike caused an explosion and fire near the Fairmont The Palm hotel, injuring several people and shattering nearby windows. Palm Deira led weekly transactions with AED 435.9 million.
Other large deals were recorded in Madinat Al Mataar at AED 308.7 million, near Al Maktoum International Airport, where flight operations were briefly disrupted during recent security alerts. Majan also posted transactions totaling AED 250.1 million, reflecting steady demand in the expanding residential corridor along Sheikh Mohammed bin Zayed Road.
Prime urban districts also saw notable activity. The Burj Khalifa district recorded deals worth AED 149.9 million, while Dubai Marina—where debris from an intercepted drone struck a residential tower—logged transactions totaling AED 133.6 million.
Dubai’s property market has expanded rapidly since the COVID-19 pandemic, supported by visa reforms, tax advantages and inflows of international wealth. In 2025, residential prices continued to deliver real return yields approaching 10%, with transactions totaling a record $147.4 billion in over 200,000 transactions.
However, recent tensions have unsettled financial markets. The Dubai Financial Market has fallen about 15% since the start of the conflict, led by declines in developer shares. The real estate index has dropped roughly 20%, with Emaar—Dubai’s largest listed developer—seeing its shares fall around 25%.
Despite the market volatility, real estate sector representatives say property transactions in Dubai continue without disruption. Turkish sector representatives operating in the country say buyers from Türkiye, one of the leading nations in property investment, report that life in the city began returning to normal quickly after the recent incidents.
Burak Ustaoglu, CEO of WovenInt, a Dubai-based real estate investment and consultancy firm, said the city resumed normal operations shortly after the attacks, noting that Dubai’s airport reopened within hours and property transactions continued without interruption.
Another sector representative, Burak Guler, said the primary disturbance in the city had been the sound of intercepted munitions destroyed by air defense systems.
"This situation is viewed by many investors as a factor that strengthens confidence in Dubai’s security capacity," Guler told business-focused dunya.com. "At the moment, we do not observe a situation in Dubai’s real estate market that creates panic."
According to Abu Dhabi Commercial Bank (ADCB) economists, non-resident buyers and expatriates are considered a crucial pillar for sustaining demand in the UAE real estate market, particularly as new supply rises through 2028. Foreign interest is vital to absorb the upcoming inventory amidst potential population growth imbalances.
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