Breaking! U.S. Embassy in Iraq Attacked! Collapsed Over 33% - Middle East Real Estate Giant Crumbles

The world’s most prominent real estate market faces a trust crisis.

Amid ongoing escalation of tensions in the Middle East, real estate transactions in the UAE have sharply declined, with property stocks experiencing heavy sell-offs. Abu Dhabi’s largest publicly listed developer, Aldar Properties, has seen its stock price fall over 33% since the outbreak of conflict. Goldman Sachs states that increasing regional uncertainty is beginning to exert pressure on local real estate demand.

Regarding the situation, according to CCTV News, around 2:30 a.m. local time on the 18th, the U.S. Embassy in Iraq’s Green Zone in Baghdad was attacked. Since the recent US-Israel-Iran conflict began, the U.S. Embassy in Iraq has been attacked multiple times. Additionally, Xinhua reports that Iranian President Ebrahim Raisi issued a statement in the early morning of the 18th expressing condolences over the assassination of Iran’s top national security official and former parliamentary speaker, Ali Larijani, and vowed revenge. Raisi highly praised Larijani’s contributions during his tenure, stating that as Secretary of the Supreme National Security Council, Larijani worked tirelessly to promote regional peace and security and to foster friendly relations among Islamic countries. His death is a significant loss that cannot be compensated, and the perpetrators will be brought to justice.

Moreover, the U.S. Central Command announced on the evening of the 17th that U.S. forces used multiple 5,000-pound (approximately 2.7 tons) bunker-buster bombs to attack Iranian missile positions along the Strait of Hormuz. CCTV International News cited Israeli media reports indicating that Iran launched missiles at Ramlat Gan, south of Tel Aviv in central Israel, resulting in two deaths. Tel Aviv’s Savidor Central Railway Station was also severely damaged.

Plummeting over 33%

Affected by the ongoing escalation of tensions in the Middle East, confidence in the UAE real estate market has suffered a major blow. Notably, Abu Dhabi’s largest listed developer, Aldar Properties, has seen its stock price drop more than 33% since the conflict began.

Additionally, Emaar Properties, one of the UAE’s largest real estate developers and the builder of the world’s tallest building, the Dubai Burj Khalifa, has also experienced a decline of over 30%, with bond prices of major developers also falling sharply.

Goldman Sachs states that since the conflict’s outbreak, the total transaction value in the first half of March decreased by 31% year-over-year, with a significant month-over-month decline of 51%.

Amid the series of escalations in Middle Eastern tensions, investor sentiment toward Dubai’s real estate market remains cautious. The risk-averse mood among overseas investors is rising, and international capital flows are inevitable.

Mohammed Ali Yasin, CEO of Ghaf Benefits, a subsidiary of UAE investment giant Lunate, said that only once the conflict subsides can the true impact on the real estate market be assessed based on demand levels.

Reports indicate that after the outbreak of the US-Iran war, there has been a surge in inquiries about transferring assets from the UAE to Singapore. A foreign private wealth lawyer revealed that several Dubai clients are planning to immediately move their assets to Singapore.

Economists at Abu Dhabi Commercial Bank pointed out that after the conflict ends, investor confidence and interest in real estate investment will be crucial. Foreign and non-resident buyers will be key demand drivers, especially from the second half of 2026, when new housing supply is expected to increase steadily and remain high over the next two years.

If foreign investor enthusiasm remains subdued, the vacancy rates for luxury villas and off-plan apartments in the UAE could be quite high.

Some analysts warn that if the war continues, mutual distrust between Iran and the UAE could persist or even worsen, damaging the long-cultivated image of the UAE as a “safe” and “open” environment.

It is worth noting that real estate is one of Dubai’s core economic pillars, contributing approximately 15% to its GDP through real estate and construction sectors.

Before the outbreak of the Middle East war, Dubai was one of the top destinations for global real estate investors. According to Fitch Solutions, from 2022 to the first quarter of 2025, Dubai’s property prices surged by 60%.

Data from CBRE indicates that in 2025, Abu Dhabi’s residential transaction volume will increase by 50% year-over-year, with values rising by 61%, and overall residential prices increasing nearly 32% annually. Dubai’s residential sales last year increased by 13%. The rental market is also active, with Abu Dhabi’s average rent rising 22% annually and Dubai’s about 6%.

However, some senior executives in the Middle Eastern real estate industry remain optimistic about the long-term outlook.

Ziad El Chaar, CEO of Dar Global, a leading luxury real estate developer, stated that the fundamentals across Gulf Cooperation Council countries are strong, and he believes the current downward cycle will pass quickly. He emphasized that no projects have been shelved and everything is proceeding as planned.

Attacks on the U.S. Embassy in Iraq

Currently, the tension in the Middle East shows no signs of easing. On the morning of March 18, CCTV News reported that at around 2:30 a.m. local time, the U.S. Embassy in Baghdad’s Green Zone was attacked. Since the recent US-Israel-Iran conflict began, the U.S. Embassy in Iraq has been targeted multiple times.

According to Xinhua, Reuters reported on the 17th that Iran’s Supreme Leader, Ayatollah Ali Khamenei, rejected a proposal to de-escalate or ceasefire with the United States. Two mediators conveyed this proposal to Iran.

Reuters quoted a senior Iranian official as saying that during his first diplomatic policy meeting, Mullah Khamenei took a “firm and serious” stance against the U.S. and Israel. He believes that “the right time for peace” will only come once the U.S. and Israel admit defeat and pay reparations.

On the 17th, Iran’s Islamic Revolutionary Guard Corps announced that Iranian armed forces had launched “effect-oriented” military operations in the region.

The IRGC issued a statement that the new round of operations, called “Real Commitment-4,” began early that morning, characterized by “effectiveness” and “precision strikes,” utilizing ultra-heavy precision-guided weapons, multiple warhead missiles, and attack drones.

The statement said that the results of this round of operations would be continuously communicated to the Iranian public.

Additionally, CCTV News reported that from early morning on the 17th until around 9 a.m., Israel’s Defense Forces detected two missile launches from Iran toward Israel, with air raid sirens sounding in northern and central Israel.

The Israeli military stated that both rounds of Iranian missile attacks involved limited numbers and were successfully intercepted. Hezbollah in Lebanon also continued to fire rockets and drones at Israel. Multiple air raid sirens sounded in northern Israel.