UAE’s property market faces threat after Iranian missile strikes

The UAE’s years-long property boom faces its first real test after Iranian missile strikes shattered the Gulf’s safe-haven aura, Reuters writes.

The attacks on airports, ports and residential areas in Dubai and Abu Dhabi have punctured the ‌region’s reputation for stability. Developers that had been selling out off-plan launches within hours now confront a sharply changed demand backdrop.

On ​Wednesday, shares in Dubai and Abu Dhabi developers plunged; bond prices of major developers dropped sharply.

“The real effect on real estate should be measured on the level of demand once the conflict halts. That is where the true impact will be felt,” said Mohammed Ali ​Yasin, the chief executive of Ghaf Benefits, a Lunate company in Abu Dhabi.