In March 2023, Dubai's housing market experienced its first decline since the pandemic, with home prices falling 5.9% according to a home price index compiled by ValuStrat. This drop is attributed to regional conflicts affecting demand, particularly following the escalation of tensions involving Iran and the US and Israel. The value of residential sales decreased to 37.2 billion dirhams ($10.1 billion), nearly a 20% drop from the previous month, as the number of transactions fell from approximately 16,000 to 13,000. Despite these declines, some industry experts believe that the market will remain resilient due to a shift towards long-term residency for expatriates and ongoing development projects. Developers are actively launching new projects and offering incentives to encourage sales, although concerns remain about the impact of geopolitical tensions on investor confidence. The off-plan market, which constitutes a significant portion of transactions, is being closely monitored as it requires substantial foreign investment confidence. Overall, while the market faces challenges, there are signs of stability and continued activity among local buyers.