Q: If flights are still being disrupted and travel is less predictable, does that not become a real problem for a market like Dubai that depends so much on overseas buyers actually arriving there? British Airways is not travelling to Dubai until July at the earliest, so I see this as a real problem. What’s your opinion? CT, London
A: Yes, it does matter and I think some people in property have been too casual about that. Dubai is not a city that lives only off local demand. You are right, it depends heavily on visitors, overseas investors, second-home buyers and people who want to spend time here before they commit. When flights are restricted, that affects more than tourism. It affects viewings, legal processes, handovers, meetings with banks and simple buyer confidence.
It was reported that more than 21,000 flights were cancelled at major regional airports after the conflict began and Dubai later limited foreign airlines to one daily round trip until May 31. This is a real interruption to normal business. That said, Emirates airline is continuing to open up flights and is currently back to 65 per cent full capacity so we are slowly getting back to normality assuming no further escalation to the crisis flares up.
The bigger issue, however, is psychological. A buyer in London, Mumbai or Singapore does not need to experience disruption first-hand to become hesitant. They only need to see enough uncertainty to say, “I’ll wait a few weeks.” And when enough people say that at once, the market obviously slows. In March, we also saw Dubai airport itself disrupted after an incident occurred which temporarily closed the airport for a few hours.
Now, does that mean demand disappears? No. But it becomes harder to close [a deal] quickly. Buyers who are already convinced may still proceed. Buyers who were halfway there may not. In real estate, that difference matters. Markets often feel the effect of hesitation before they feel the effect of actual withdrawal and I think that is exactly where we are right now.
Question: I’ve always seen Dubai as the place people invested in when the rest of the region felt uncertain. Has the Iran war changed that in a serious way, or is the market just going through a natural nervous period of uncertainty? DM, Singapore
Answer: There’s no denying that it certainly has changed the mood. When headlines involve missiles, airspace disruption and questions around the Strait of Hormuz, people naturally pause. Some postpone travel. Some delay a purchase. Some sellers become more realistic. But that is not panic. This is a market reacting like a market should when the wider region is under strain. There were reports in March that Dubai property was already showing early signs of weakness, with a sharp drop in sale volumes in the first part of the month and some sellers trimming prices to get deals done.
What matters, though, is whether that pause turns into a lasting shift. So far, the evidence is still positive rather than problematic. Dubai Land Department said Q1 2026 transaction values reached Dh252 billion, up 31 per cent year on year, while foreign investment rose to Dh148.35 billion and new investors increased to 29,312. That tells me people have become more cautious, yes, but they have not abandoned the UAE property market altogether. The market is definitely softer in tone, but it is still attracting capital.
So in my opinion, Dubai has not lost its appeal, but it has lost the luxury of being seen as immune to regional events. That is actually a healthier place to be. Buyers are asking better questions now. They are taking longer. They are negotiating more. A market does not become weak because people become thoughtful. In many cases, that is how a market develops further to bigger and better things.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions tomariovolpi64@gmail.com