OMM Redaksiyası
Dubai’s years-long real estate rally has changed direction for the first time. The average price of residential properties fell 1.7% in August from a year earlier to $445 per square foot.
About 10,900 homes were sold in August, with the total value of transactions reaching $6.4 billion. Approximately 75% of sales involved properties that were under construction or had not yet been built.
The economic fallout from the US-Iran war is affecting flights, transport, energy supplies, and the movement of people and goods across the Gulf region. Despite this, developers and investors are still managing to attract buyers.
Although the United Arab Emirates has avoided the sharp economic shock seen in some countries, the International Monetary Fund says the conflict has slowed the country’s economic growth. The fund expects gross domestic product growth in 2026 to be lower than previously forecast.
Tourism, transport, trade and real estate are among the sectors most exposed to uncertainty and repeated disruptions around the Strait of Hormuz. Dubai International Airport handled 31.5 million passengers in the first half of 2026, a decline of about one-third compared with the same period last year.
Dubai is increasing investment in technology, artificial intelligence and digital infrastructure to diversify its economy beyond oil and real estate. The emirate’s artificial intelligence strategy aims to generate $272 million annually for Dubai’s economy and increase productivity by 50% through digital technologies.
The program includes establishing artificial intelligence incubators, developing data centers, issuing sector-specific licenses and integrating artificial intelligence into government services.
The UAE is also expanding its agricultural operations and food supply chains abroad. Al Dahra, in which Abu Dhabi’s sovereign investment company ADQ holds a 50% stake, manages more than 1,000 square kilometers across four continents and serves over 40 markets.
The UAE imports approximately 85-90% of its food needs. Al Dahra’s network covers 15 countries and 27 ports. The company’s latest five-year wheat agreement with Egypt is worth up to $500 million.
Dubai’s real estate market is currently characterized more by a cooling than a collapse. However, if disruptions around the Strait of Hormuz continue for months, pressure could spread from aviation and maritime transport to investment decisions, business costs and consumer demand.
