Demand for Dubai homes cools as Middle East conflict drags on

Demand for homes in Dubai has cooled due to the ongoing Middle East conflict, specifically the US-Israel war on Iran, which began in February with strikes in Tehran and expanded into a regional conflict. Analysts note a 13.6% annual decline in citywide sales volumes in the first half of 2026, with a marked weakening in May and June as buyers delay purchases and businesses postpone relocations.