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Dubai real estate deals drop 24% in Q1 amid US–Iran war; April shows signs of recovery
Dubai real estate transactions fell nearly 24% in March amid the US–Iran war, but early April data shows recovery, with developers offering flexible plans
Real estate transactions in Dubai declined by nearly 24% in the first quarter of 2026, falling from 17,394 in January to 13,241 in March, according to data from the Dubai Land Department.
In March, real estate transactions in Dubai declined as buyer sentiment weakened amid heightened uncertainty triggered by the US–Iran war. The total transaction value was about AED 42.63 billion, according to the data.
In March, the total number of transactions in Dubai was 13,241, the data showed.
The decline was gradual through February, with transactions at 17,010, before a sharper drop in March, indicating a loss of momentum toward the end of the quarter amid the ongoing geopolitical situation, experts said.
However, early April data suggested a possible recovery in activity. Transactions rose from 6,091 in the first half of March to 7,284 in the first half of April, according to the data.
The largest transactions in January were concentrated in high-value developments. In Al Khairan First, Creek Bay recorded the highest total transaction value at approximately AED 454.3 million, followed by Creek Haven at around AED 361.1 million, and Lyvia by Palace at about AED 285.9 million, according to data from the Dubai Land Department.
The top three transactions in March 2026 were led by Bukadra, with deals on projects such as Skyvue totalling approximately AED 619.1 million, making it the highest contributor during the month. This was followed by transactions in Burj Khalifa, totalling around AED 448.6 million, reflecting continued demand for prime, luxury residences. Close behind was Al Khairan First, with total deals worth nearly AED 336.9 million, as per the data.
Also Read: Dubai real estate: Will mid-segment properties face pressure amid the US–Israel–Iran war?
Negotiations ongoing, experts say
Dubai’s real estate market is witnessing a moderation in activity as buyers adopt a cautious, wait-and-watch stance, leading to harder negotiations on pricing, Porush Jhunjhunwala, CEO of Banke International Properties, said.
“Buyers are taking more time to commit and are negotiating more aggressively on prices in the current environment,” Jhunjhunwala said, pointing out that such trends are not unprecedented. “We have seen similar patterns in the past, where geopolitical conflicts led to a temporary slowdown in real estate activity, accompanied by increased price negotiations and a wait-and-watch approach from investors.”
“High-end residential and prime properties demonstrate resilience due to a diverse international buyer pool and depth of liquidity. In contrast, the mid-segment and speculative off-plan projects have been more prone to volatility from uncertainty,” he said.
However, he said that with investors focusing their portfolios on more cash-flow-oriented sectors, and with developers offering new flexible payment plans or additional incentives to sustain demand, the market appears to be gradually shifting.
Also Read: Dubai real estate: Indian-origin family hopes to renegotiate price after booking flat hours before Iran–US–Israel ‘war’
Dubai integrates property and visa services under single platform
According to media reports, the General Directorate of Residency and Foreigners Affairs (GDRFA) and the Dubai Land Department (DLD) have signed an agreement to integrate visa-linked real estate services into a single digital platform, allowing property investors to complete the entire residency process through one interface, Gulf News reported, citing official announcements.
The system eliminates the need to approach multiple government bodies and now covers three key residency routes—Golden Residency (10-year visa) for high-value investors, retiree residency for expatriates settling post-retirement, and property-linked residency visas for eligible buyers. The integration also enables real-time verification of property ownership through DLD records, reducing paperwork, streamlining approvals, and improving overall efficiency.
