Dubai’s property investors are showing resilience against a backdrop of volatility and uncertainty, with apartment sales in the emirate reaching nearly $5 billion in the weeks since the US-Israeli war on Iran began.

Off-plan residential apartment sales in Dubai hit AED 17.5 billion ($ 4.8 billion) in March 2026, marking a 12.9% increase compared to a year ago, according to an analysis of Dubai Land Department (DLD) data by Al Masdar Al Aqaari, a platform specialising in UAE property market insights.

Transaction volumes in the off-plan segment also rose 2.3% to 7,983 deals during the same period, indicating strong buyer interest in Dubai real estate.

Iran has launched drone attacks and strikes in the UAE since the conflict began on February 28, leading market analysts to question the emirate’s safe-haven status for high-net-worth individuals (HNWIs). The conflict has also stoked chaos across financial markets outside the region.

DLD sales data showed that property seekers in Dubai showed strong interest in apartments in areas like Madinat Al Mataar and Dubai Islands. The increase in sales has been attributed to the “ultra-luxury” segment and strategic development near Al Maktoum International Airport (DWC).

One of the developments, Aman Residences, saw record-breaking deals, with one buyer snapping up an apartment for AED 422 million.

The analysis, however, did not take into account sales transactions in the villa segment or secondary and completed properties.

S&P has said that Dubai is not likely to lose its safe-haven allure soon nor will it undergo a property market crash similar to that of 2008 despite the regional conflict, highlighting that recent government reforms have changed the buyer profile from speculative to long-term.

While there has been a “flight to liquidity” during the initial phase of the conflict, some investors are doubling down on tangible assets in Dubai to use as a hedge against currency instability in the rest of the Middle East.

"We believe that the UAE government’s visa reforms will create a degree of stability and stickiness for residents and home/property owners … initiatives such as the Golden Visa grant long-term residency to investors,” the ratings agency said.

S&P also noted that so far, the damage to real estate assets in Dubai that were struck by drones, missiles, shrapnel or debris has “not been to a degree beyond repair.”

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com