Dubai’s property market has suffered a sharp downturn following the spread of conflict across the Middle East after US and Israeli attacks on Iran. The city’s long-standing image as a safe investment haven has been damaged, leading to a rapid decline in real estate transactions and falling property values. Some housing agents have already signaled price cuts, while shares of major developers have dropped significantly, with Emaar Properties losing more than 26 percent since the war began.

A Goldman Sachs analysis reported that property transactions in the UAE fell 37 percent in the first 12 days of March compared with the same period last year, and nearly 49 percent compared with February. Some properties are being sold at discounts of 12 to 15 percent. The downturn follows five years of steady price growth, raising concerns of a broader market slowdown.

Citibank analysts warned that the ongoing conflict poses a major risk to Dubai’s future population growth and investor confidence, potentially deepening pressure on the housing market.