Dubai’s property market put to test in missile barrage from Iran

The UAE’s years-long property rally faces its first major test after Iranian missile strikes unsettled investors, sending shares in developers such as Aldar Properties and Emaar Properties down almost 5%.

The sell-off comes as analysts had already warned that a pipeline of new housing supply expected by 2028 could outpace population growth, Reuters reports.

Meanwhile, bond prices of major developers also dropped sharply, effectively shutting the debt market.

With expatriates and overseas buyers underpinning much of the market’s demand, investors say the outlook will depend largely on whether foreign appetite for property in the UAE holds up.