Since the outbreak of the Iran war, Dubai real estate has crashed worse than Bitcoin ($BTC).
The Dubai Financial Market (DFM) real estate index closed at 13,353 on Monday. 18.1% decrease From 16,306 on February 27, the most recent trading session before the airstrike that began Operation Epic Fury on February 28 at 1:15 a.m. New York time.
in contrast, $BTC When the first bomb was dropped on Iran, it was trading at $65,492. It briefly fell to $63,000, but rose to $69,000 by 12:30 p.m. Monday in New York, up 5.4% since the start of the war.
Dubai real estate lost nearly a fifth of its value in the same 10 days.
The collapse of the city’s real estate market threatens to wipe out all gains since the start of the year and reverse 2025 gains, which provide just a 15% further downside cushion, before prices return to 2024 levels.
Dubai Financial Market Real Estate Index, 5-minute cycle, current from February 27th. Source: TradingView
The chart of the DFM Real Estate Index shows a step change each trading day along with a hard floor. For example, in four hours today, the real estate company index did not fall below exactly 13,353.20.
Certain exchanges artificially limit price fluctuations, such as a 5% daily DFM.
Nearby exchange Bursa Kuwait has completely suspended trading since March 1st.
Demand for commercial flights out of Dubai has increased by at least 300% due to airport closures, with people paying thousands of dollars or even six figures to be evacuated.
Dubai bombing, drone attack, airport closure
Dubai has promoted itself as a stable and tax-friendly hub for crypto influencers for years, legitimately attracting many crypto companies and influencers.
Bybit, Telegram’s TON Foundation, and Deribit are headquartered in Dubai, and many other crypto companies have offices in Dubai, including Binance, OKX, and Crypto.com.
Overall, 9,800 billionaires moved to the United Arab Emirates (UAE) in 2025 alone, bringing with them $63 billion.
Iran then fired missiles at Dubai’s airport, luxury hotels and civilian areas. UAE regulators have shut down the country’s stock exchanges for two full days to prevent a panicky sell-off.
Emaar Properties, the developer of the Burj Khalifa, saw its stock fall from Dh17 on February 27 to Dh13.30 today, a 22% cut. Al Dar Properties, Abu Dhabi’s largest listed developer, fell 5% on the day the market reopened. The UAE developer bond market has only been trading intermittently, with spreads widening across the region.
Read more: Odds fluctuate wildly as polymarket bets on collapse of Iranian successor
Dubai’s crypto-friendly real estate boom depended on foreign capital, but that capital is now headed for the exit.
In the secondary market, aggregators that track distressed property transactions show average prices are down 4.9%. This is for property owners who have had enough time to update their asking prices, including properties that are more than 10% cheaper than they were a few days ago.
Even before the war, Fitch had warned of a decline of up to 15% due to supply concerns alone. Analysts had already warned that the supply of new condos would surge in the second half of 2026 as demand soars.
$BTCdespite its reputation as a notoriously volatile asset, has been positive since the bombs started falling. Dubai real estate, once thought to be a safe store of value with its marble lobbies and palm-shaped islands, has suffered a huge drop.
