🗣The Dubai Real Estate Market Index (DFMREI) has collapsed by 20% over five trading days, erasing all growth from 2025.

For ten consecutive years, the market was on the rise without pause, even COVID only slowed it down for a quarter. Now, all of this has turned negative in just one week.

Asian family offices, Russian bloggers, British billionaires, Indian capital — all were bringing money to the tax-free city. Now, however, investors are urgently offloading real estate below market value and taking $1,2 trillion in capital to places where there is no war. The DFMREI will continue to fall as insurance companies have exited the region, and without them, no supply chain will function.

An additional blow was the closure of the Hormuz Strait — now Dubai has about 10 days of fresh food supplies left. Additionally, air cargo traffic has fallen by 22%, and the largest hub in the region, serving 50 million people, has suspended operations under the strikes.