The escalation of the war in the Middle East has already begun to significantly impact the region’s financial markets. One of the most striking signals has been the sharp drop in Dubai’s real estate index.

According to trading data on the Dubai stock exchange, the Dubai Financial Market (DFM) real estate index fell by approximately 30% in two weeks — from 16.8 thousand points to about 11.7 thousand, UNN reports.

Thus, the market effectively lost all the gains accumulated since the beginning of 2026. This decline was one of the largest in recent years and coincided with a sharp deterioration of the security situation in the region after the start of the war between Iran, the US, and Israel.

Even at the beginning of 2026, the Dubai real estate market showed record growth rates. In 2024, the real estate index grew by approximately 63%, and in 2025, it added another 30%. In early 2026, the positive trend continued: in January–February alone, the index rose by another 20–21%.