Dubai Residential Sales Drop 25% Amid Regional Tensions
"10Haber: Geopolitical tensions have slowed the Dubai real estate market. Sales volume fell by 25% in two weeks, as Woven CEO Burak Ustaoğlu advises a 'wait-and-see' approach."
Geopolitical Silence in Dubai Real Estate Market
Escalating regional conflicts in the Middle East have impacted Dubai, the world's favorite investment hub in recent years. Following mutual attacks involving regional powers, the real estate sector has felt the pressure. According to DXB Interact data, sales dropped from 8,199 units to 6,129 units in early March—a 25% decrease.
Transaction volume also retreated from $7.55 billion to $5.61 billion. The Dubai Financial Market Real Estate Index recorded losses exceeding 25%. While experts note that prices haven't plummeted yet, they warn of long-term risks if the instability persists.
Burak Ustaoğlu: "A Period for Waiting, Not Trading"
International real estate expert and Woven CEO Burak Ustaoğlu noted that investors are currently cautious. Ustaoğlu stated: "Currently, a 'wait-and-see' period prevails for everyone. In the current atmosphere, it is not the right time to buy or sell. We believe investors should wait for the processes to become clearer."
Resilience of the Dubai Economy
Highlighting that Dubai is built on a strong business model, Ustaoğlu added that the market could recover quickly if a ceasefire is reached: "Dubai’s main source of migration is the business model. There is a significant cash flow from companies moving their headquarters here. If the conflict stops, Dubai recovers very quickly. However, if this lasts more than 3-6 months, price corrections, especially in secondary markets, may be inevitable."
Source: 10Haber – Read Full Article