The ultra-wealthy are pulling back from Dubai real estate amid the Iran war, bringing a sharp pause to the years-long rush that made the city one of the hottest property markets in the world. Home sales above 10 million dirhams ($2.7 million) fell 54% in the second quarter compared to the first, to 864 transactions, according to real-estate brokerage Savills.
Dubai’s status as a tax-free haven with flexible long-term residency visas has drawn buyers from China, Europe, India, and Russia in recent years, turning the emirate into one of the fastest-growing cities for millionaires. Now, buyers are pulling back across the board, cooling on new and secondary sales, as well as off-plan purchases still years from completion. Developers are slowing down, too, announcing far fewer projects and longer timelines. Projects once expected to be done in three years could now take four, according to Savills.