Dubai real estate craze has paused, but appeal remains: Niranjan Hiranandani | Real Estate News

Interest in Dubai real estate has temporarily slowed but has not disappeared, and the city is likely to retain its appeal once peace returns to the Middle East, Niranjan Hiranandani, founder and managing director of Hiranandani Communities, told Hindustan Times Real Estate.

Dubai real estate: Interest has temporarily slowed but has not disappeared, and the city is likely to retain its appeal once peace returns to the Middle East, said Niranjan Hiranandani. (File Photo )“The Dubai fever may have subsided for now, but it is far from over,” he said, adding that recent developments had temporarily dampened enthusiasm for the market.

"I don't think the love for Dubai has been eliminated; people still love Dubai. If push comes to shove, people will still go back. If peace is restored in the Middle East, Dubai will still have its appeal. For the last 40 years, people have lived in Dubai and felt quite safe and sound, so I don't think Dubai will lose its appeal," Hiranandani said.

According to Hiranandani, buyers are now reassessing their property purchases in Dubai amid tensions in the Middle East, a hesitation that was absent earlier. However, he believes the market will recover once peace is restored in the region.

"People are beginning to think twice about whether they should buy or not in Dubai, a hesitation that wasn't there earlier. However, we need to understand that Dubai is mature that way, and once things settle down, everybody forgets after some time, and that is how it works," Hiranandani said.

According to an ANAROCK report, homebuyers from more than 150 countries purchased residential properties in Dubai in 2025, with Indians accounting for the largest share (22%), followed by buyers from the UK (17%) and China (14%).

Dubai's real estate market recorded AED 225.7 billion in housing transactions in H1 2026, down 16.1% from AED 269.1 billion in H1 2025 amid the US-Iran war, according to a report released by Anarock Middle East in July 2026, titled 'Dubai Real Estate: Built on Vision.' Proven by Numbers.'

Dubai's residential real estate market recorded AED 225.7 billion worth of transactions in H1 2026, down 16.1% from AED 269.1 billion in H1 2025, but 14.7% higher than the AED 196.8 billion recorded in H1 2024, it noted.

The report distinguishes between armed conflicts and economic or financial shocks, noting that geopolitical events have historically had a more limited and shorter-lived impact on Dubai's housing market than global economic downturns.

During the Global Financial Crisis (2008-2010), Dubai's residential property prices fell by around 40% and took nearly 3.5 years to recover, the slowest rebound in the city's history.

The 2015-16 oil price collapse resulted in only a 2% correction, reflecting Dubai's limited dependence on oil, which accounts for less than 1% of its GDP. During the COVID-19 pandemic in 2020, residential prices declined by about 6% but rebounded within 13 months, marking the fastest recovery cycle at the time, it noted.

Mehul R Thakkar is a Mumbai-based journalist who closely tracks the city’s ever-evolving real estate landscape. He believes that Mumbai presents a unique reality that, while Mumbaikars deeply aspire to own a home in the city of dreams, many spend little actual time living in it due to long commutes and demanding work lives. With over 11 years of experience in journalism, I have reported across a wide spectrum of beats, including real estate, housing, infrastructure, aviation, and education. I have also extensively covered the workings of India’s wealthiest civic body, the Brihanmumbai Municipal Corporation (BMC), providing insight into the policy, governance, and urban planning decisions that directly influence Mumbai’s growth. Before joining Hindustan Times, I worked in fast-paced digital and print newsrooms, including Moneycontrol.com and Deccan Chronicle, as well as national dailies such as The Asian Age and DNA. Outside the newsroom, I am an avid weather tracker, a fan of spy thrillers in both books and films, and a keen follower of international affairs.Read More