West Asia conflict disrupts supply chains, raises costs, and pushes property handovers into 2027.

War Puts Brakes on UAE Realty Boom as Dubai Projects Face Delays.

The ongoing conflict in West Asia is slowing the UAE’s otherwise booming real estate market, with Dubai’s under-construction projects facing delays of six to twelve months. Of the nearly 45,000 housing units scheduled for delivery in 2026, almost half are now expected to spill over into 2027 or later, according to market estimates cited by Anarock Group. Construction costs have surged by nearly 30%, driven by rising prices of imported materials and logistics disruptions. Dubai’s property market, where under-construction projects account for around 70% of transactions, is particularly exposed due to its heavy reliance on imports. Shipping reroutes and supply bottlenecks have hit premium materials, aluminium, and MEP components. High-profile projects, including Wynn Resorts’ $5 billion casino resort, have already confirmed delays. Strikes impacting aluminium producers such as Emirates Global Aluminium and Aluminium Bahrain have further strained supplies. Meanwhile, tighter bank financing against escrow accounts is adding liquidity pressure, making extended delays increasingly likely across Dubai’s vast construction pipeline.