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Residents cash in on Dubai real estate cooldown o Image as city that is ‘safe no matter what’ dealt blow by Middle East war

DUBAI: Just over a year after moving to Dubai, Steve found himself moving unexpectedly up the property ladder, taking advantage of a cooling real estate market amid the Middle East war. His new apartment is larger and closer to work than his previous resident, but the rent is nonetheless 15 per cent cheaper, he said, using a pseudonym due to Dubai’s sensitivity on the matter. When he arrived in Dubai in 2025, “it was really difficult to get a place in this area and the rents had gone up by a lot”, said the 35-year-old, who works in the media sector. Dubai’s property market – a pillar of its economy – has soared in recent years, buoyed by the arrival of international high-net-worth individuals attracted by the glamorous lifestyle on offer in the emirate. But the outbreak of the Middle East war in late February has dampened growth. Targets in Dubai came under fire in the early days of Iran’s retaliation against US allies in the region. Even some of its most iconic sites, such as Burj Al-Arab and the Palm Jumeirah, were not spared, dealing a blow to the city whose population is more than 90 per cent foreigners. Hostilities resumed in July, following an April ceasefire, but Dubai has so far not been in the firing line. But its image as a city that is “safe no matter what” has yet to recover from the blow it was dealt, said a real estate agent, speaking on condition of anonymity. Today, she said: “We are in some sort of grey area. “I’m getting a split sentiment; people think this has destabilised the region for a long time... And there are people who say this is the right time to invest.” Clients have not completely disappeared, the agent said, but the margins for negotiation have expanded. “Since the war, the market’s shifted from a seller’s market to a buyer’s market,” she said. British real estate consultancy Knight Frank said “we have already noted prices ebbing widely across the city’s mainstream market by between five and 20 per cent, depending on location”, after having surged by an average of 82.9 per cent since 2021. The market has been hit previously, notably during the 2008 economic crisis and the Covid-19 pandemic. Property giant Emaar nonetheless announced last month a massive US$55 billion project in the heart of Dubai, hoping to attract some 150,000 residents, signalling its confidence in the market’s ability to bounce back. Binghatti, another major developer, said it had sold two luxury apartments in the centre in June, at US$54 million and US$19 million respectively. According to a report by the Betterhomes agency, based on official figures, sales transaction values fell in the second quarter of 2026 by 45 per cent year on year, with the luxury sector hit particularly hard. But chief executive Richard Waind

A general view of Dubai. – REUTERSPIC

But, he explained, this time of year has traditionally been a lull period and projected that investment would begin to “recover and return as we come out of the summer”. – AFP

terms of buyer activity and buyer deals happening,” he told AFP. Demand is mainly driven by Dubai residents, rather than foreign investors, he said.

nonetheless insisted that the situation has improved over the past weeks. “We’re starting to see demand increase again through June and then into this month, both in

US president says EU to pay ‘very big price’ for Google fine WASHINGTON: US President Donald Trump last week threatened to hit the European Union with tariffs and a formal trade investigation over Brussels’ latest antitrust penalty against Google. In a post on his Truth Social platform, Trump said the bloc “will pay a very big price for this illegal and highly unethical conduct, which I have consistently warned them about.” Trump’s threat came a day after the White House announced sweeping new tariffs of 10 per cent to 12.5 per cent targeting 60 trading partners including the European Union. decisions: a €460 million fine for favoring Google’s own shopping, hotel, transport and sports services in search results, and a €430 million fine over restrictions that stopped app developers from steering users toward cheaper offers outside the Google Play store.

would not back down from applying its laws, telling journalists: “We are very committed to our rules.” EU officials have repeatedly insisted that their digital rulebook is not aimed at American firms, though Washington repeatedly rejects that claim. US technology giants have cultivated closer ties with the White House since Trump’s return to office in January 2025, with several companies lobbying the president directly over European regulation. The renewed tensions test the trade framework agreed between Washington and Brussels last year, which lowered US duties on European cars in exchange for concessions from the bloc. Both sides struck the deal to avoid a painful trade war, and it cleared its final legal hurdles in the EU only recently. – AFP

The fresh duties took effect last Friday after investigations, and relied on the same legal justification under Section 301 of the Trade Act. Trump has been moving to rebuild his tariff wall – and his ability to impose duties on short notice – after the US Supreme Court struck down many of his levies in February. The European Commission on Thursday fined Google €890 million (RM4.1 billion) for breaching the Digital Markets Act (DMA), the bloc’s landmark law policing the conduct of dominant online platforms. It was the first penalty imposed on the company under the legislation. The Commission issued two separate

US Trade Representative Jamieson Greer had already criticised the decision on Thursday, saying the EU’s enforcement action undermined “constructive dialogue” and posed a “real risk” to transatlantic trade stability. Under the DMA, the Commission can fine Big Tech gatekeepers up to 10 per cent of global annual turnover for breaches, and up to 20 per cent for repeat offenses. An EU official said last Thursday’s penalties amounted to just 0.22 per cent of Google’s turnover. EU tech chief Henna Virkkunen insisted Europe

He said he would “immediately initiate a 301 Investigation”into what he called the EU’s practice of “ROBBING” American companies, and said he anticipated a “substantial TARIFF” on the bloc “at the earliest possible moment.” “The United States of America is not a ‘PIGGYBANK’for Europe, nor will we allow it to be,“ he wrote. Section 301 of the 1974 Trade Act allows Washington to probe foreign practices it deems discriminatory and retaliate with tariffs.