RE sector badly hit due to ongoing Middle East tensions

The real estate sector has got impacted especially in Dubai market due to ongoing war.

The recent flare-up between Iran and Israel has understandably created some sense of nervousness among investors around the world, including those looking to invest in Dubai.

Talking to Bizz Buzz, Abhishek Raj, Founder & CEO of Jenika Ventures says, “In the short term, we may see a wait-and-watch phenomenon, particularly among international investors.”

However, it should be noted here that Dubai’s real estate market has historically shown incredible resilience in the face of regional and international turmoil.

While transactional volumes may dip in the short term if investors decide to wait and watch, it is unlikely that long-term investors with a medium- to long-term outlook will completely pull out of the market. In fact, phases of uncertainty often provide investors with opportunities to strike better deals and diversify their portfolios. In this sense, we feel that the demand for Dubai’s real estate and long-term investors’ interest in the market will continue to hold firm, underpinned by Dubai’s infrastructural growth and residency benefits. While the short-term outlook may show some volatility, the fundamentals of Dubai’s real estate market remain strong and attractive for well-informed investors.”

Pyush Lohia, Managing Director of Lohia Worldspace, says, “The current situation in the Middle East is clearly making real estate investors more cautious, especially in markets like Dubai that have long been seen as safe and stable for investment.”

While we are not seeing panic selling at this stage, there is a clear ‘wait-and-watch’ approach among buyers. In the short term, this could slightly slow down sales activity as investors take time to reassess risks and timelines before making new decisions, particularly with a large number of new units expected to enter the market this year, he said.

That said, past trends show that quality real estate in transparent and well-regulated markets tends to pick up again once there is more clarity. Dubai’s core strengths — strong rental returns, consistent demand and supportive regulations — continue to remain strong, and we believe long-term investor confidence will stay steady despite the current uncertainty.