Dubai’s residential real estate market remained resilient despite geopolitical tensions in the Middle East, with housing transactions worth AED 225.7 billion recorded in the first half of 2026, according to a new report by ANAROCK.
The report, Dubai Real Estate: Built on Vision. Proven by Numbers, said that while the Iran conflict briefly impacted buyer sentiment during March and April, the correction was largely driven by market psychology rather than weakening fundamentals.
According to the report, residential prices declined by just 4-7% between February and April 2026, even as the Dubai Financial Market (DFM) Real Estate Index plunged as much as 34% during the period—highlighting what ANAROCK described as the widest sentiment-to-asset gap witnessed during any Dubai market crisis.
Average residential prices in Dubai stood at nearly AED 1,900 per sq. ft. in H1 2026, compared with AED 1,800 per sq. ft. during the same period last year, reflecting an annual appreciation of around 6%.
“The report highlights that while geopolitical tensions briefly affected buyer sentiment during March and April 2026, the correction was largely sentiment-driven—not structural,” said Aayush Puri, CEO – Residential, Middle East and CEO – ANAROCK CEO – ANAROCK Channel Partners (India).
He added that the recovery has been supported by robust market fundamentals, with off-plan sales accounting for nearly 70-77% of all residential transactions during the period, indicating sustained buyer confidence despite short-term uncertainty.
Continue reading at: Dubai housing market stays resilient amid Middle East tensions; H1 residential deals touch AED 226 billion
Source: The Economic Times
Available at: Dubai housing market stays resilient amid Middle East tensions; H1 residential deals touch AED 226 billion – 13 Julho 2026