The Dubai Financial Market's real estate index has plunged by approximately 20% over the past five trading days, driven by escalating geopolitical tensions in Iran. This significant decline has wiped out all gains made by the index in 2025, which had peaked at 16,910.3 on February 27. The index had previously shown strong growth, rising 15% earlier this year, following increases of 63% in 2024 and 38% in 2023. Despite the recent downturn, Dubai's real estate market has been robust, with transaction volumes projected to reach nearly AED 917 billion ($250 billion) in 2025, according to Anarock. This would mark the highest transaction volume in the city's history, with total transactions exceeding 270,000 for the year.