Conclusion First: The 31.8% drop is real, but it's not housing prices

Recently, the market has been circulating the claim that "Dubai housing prices plummeted 30% in two weeks." This data is not entirely false, but it is seriously misinterpreted.

• ✔ There is indeed data showing a drop of about 20%–30%
• ❗ However, this data comes from the "Dubai Real Estate Index (DFM Real Estate Index)"
• ❌ It does not represent actual property transaction prices

In other words:

What is happening in the current market is a "capital market expectation collapse," not a "housing price collapse."

This distinction is key to understanding the current Dubai real estate market.

1. What exactly is the 31.8% drop? — A plunge in the real estate stock index

According to multiple market data sources:

• The Dubai Real Estate Index dropped by about 20%–30% in a short period
• Statistics show the index fell by about 21% in less than two weeks
  This index (DFMRE) is essentially:
• The real estate sector index of the Dubai Financial Market (DFM)
• Mainly includes developer stocks (such as Emaar, etc.)
  Therefore:
  👉 This index represents
• Developer valuations
• Investor expectations
• Capital market risk pricing
  Not:
  👉 Housing transaction prices
  This is the biggest misconception in the current market.

2. Why did the index "plunge"? — War impacts expectations

Recent Middle East tensions (Iran conflict) have had a noticeable impact on the market.
From the latest news:

• Dubai stocks continued to fall amid the conflict
• Real estate and financial sectors were the main sources of the decline
• Core developers like Emaar saw significant stock price corrections
  The market logic is very clear:

1) Decline in foreign investor confidence

Dubai real estate heavily relies on international capital inflows.

2) Impact on tourism and population mobility expectations

Conflict affects flights, businesses, and personnel movement.

3) Tightening financing environment

Developer financing costs and risks increase.
👉 Therefore:

The stock market "repriced risk" immediately, leading to the index plunge.

3. Why haven't housing prices plummeted simultaneously? — The three characteristics of real estate

1) Lag (most critical)

Real estate transaction cycles are long:

• Transactions take weeks or even months from signing to completion
• Prices do not react instantly like stocks

2) Low leverage structure

Data shows: A large portion of Dubai real estate transactions are cash-based (about 80% or more)
👉 This means:

• No forced liquidations
• No "panic selling"

3) Driven by supply and demand, not emotions

Real estate prices mainly depend on:

• Population inflow
• Rental demand
• New housing supply
  Not short-term market sentiment.
  👉 This is why:

  "Index plunge ≠ housing price plunge"

4. What is Happening in the Real Estate Market? (Latest Status for 2026)

Based on current data and news, the market can be more accurately described as follows:

✔ 1) Transaction Pace Slows Down

The market has entered a wait-and-see period, with buyers being cautious.

✔ 2) Prices Begin to Soften (But No Confirmed Sharp Decline)

Individual listing price reductions have appeared, but a systemic trend has not yet formed.

✔ 3) Market is Highly Divergent

• Core areas: Relatively resilient
• Speculative properties/outer suburbs: More volatile

✔ 4) Long-term Support Remains

• Housing prices rose by about 60% from 2022 to 2025
• High-net-worth population continues to flow in (approximately 9,800 wealthy individuals have relocated)
  👉 This means:

  The current situation is more like a "risk repricing after a high," rather than a "crash."

5. Will There Really Be a Decline in the Future? — Institutional Views

The rating agency Fitch has clearly stated:

• Due to increased supply, Dubai housing prices may experience a double-digit correction
• The expected decline is within about 15%
  Key driving factors:
• Increase in new housing supply (approximately 210,000 units)
• The market has already experienced significant growth
  👉 In other words:

  Even if there is a decline, it is more likely to be a "cyclical adjustment," rather than a short-term crash of 30%.

6. How Should Investors Judge? — 3 Key Indicators

Compared to "price," what is more important now is:

1) Transaction Volume (Volume)

Has it significantly decreased?

2) Days on Market

Are houses becoming increasingly difficult to sell?

3) Rental Trends

Does the rental market support prices?

👉 These three indicators are more realistic than any "plunge numbers."