Luxury home prices in Dubai are dramatically falling amid tensions with Iran. Villas for sale at 25% cheaper.

The rising tensions between Iran and the United Arab Emirates have led to a significant drop in real estate prices in Dubai, with a reduction of over 25% in the last few weeks.

A Goldman Sachs study shows that real estate transactions have decreased by 31% compared to last year and by 51% compared to the previous month. Examples of affected properties include a villa on Lanai Island, with a reduction of £2.3 million, and a luxury apartment with a record drop of 26.7%. Foreign investors, who hoped to profit from properties, are now facing uncertainties, unable to sell the expensive villas.

Additionally, rocket attacks from Iran have caused a decline in the shares of real estate companies in Dubai, including Emaar Properties.