Several of Dubai’s iconic hotels are closing their doors either temporarily or for an extended period as tourists travel elsewhere during the war in nearby Iran.

With the war causing oil prices to skyrocket, raising the cost of jet fuel and spurring some airlines to cancel flights, analysts remain optimistic that the city long described as a Las Vegas of the Middle East will eventually recover from tourism disruptions. Dubai hoteliers view the current lull as the perfect time to deploy capital on major planned renovations.

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London office development has hit a speed bump, with new construction starts declining 35% on an annual basis in 2025, according to a new report from Deloitte. Results could include a construction bottleneck and potential supply squeeze starting in 2027.

The consulting firm’s latest London Office Crane Survey cited issues with project viability and occupier demands for prime new space, as office development reached 4.8 million square feet across 57 projects for 2025, down from 5 million square feet in 2024 and 8.7 million square feet in 2023. Refurbishments continued to lead the way for project starts, totaling 3.1 million square feet for the year, though that was down from 3.8 million square feet in 2024.

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A prominent portfolio of French retail properties formerly owned by the now-defunct investment bank Lehman Brothers has been sold. Investment firm Regie du Commerce acquired 129 ground-floor retail units in Marseille for an undisclosed price.

The portfolio is part of a larger residential and retail complex acquired in 2007 by a Lehman subsidiary for €200 million. New York-based Lehman Brothers filed for bankruptcy in 2008 and was later dissolved after more than 150 years in business, stemming from massive losses from high-risk subprime mortgage-backed securities that touched off a global financial crisis.

Business Immo>>

Mortgage bank analysts are expecting continued price recovery for German real estate through 2026, as several categories rebound from long valuation slumps created by slowing demand.

Pricing for residential real estate is forecast to increase 2.5% to 4.5% on an annual basis this year, bringing prices to equal or exceed peaks posted in the second quarter of 2022, according to banking association VDP. German offices could post an annual rise of 1% to 3%, completing a long process of prices bottoming out, as retail real estate stabilizes with an increase of 0.5% to 2.5%.

Thomas Daily>>

Downtown Toronto continues to drive the region’s office recovery, and an increase in leasing there could lead to more trophy office buildings changing hands, according to a report from Avison Young.

Overall space availability in Toronto declined to 17.6% in the first quarter of 2026, a drop of 160 basis points from the previous quarter and also down from 20.5% in the year-earlier quarter, the brokerage firm reported. During this year’s first quarter, tenants leased nearly 2.1 million square feet of office space across greater Toronto, with the downtown market accounting for more than 1.6 million square feet. 

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Los Angeles is beginning to test what electric air travel looks like when it intersects with real estate. Property investment firm Reuben Brothers and Joby Aviation plan to set up an air taxi vertiport, a facility that caters to lower-noise electric vehicles, atop a luxury residential building in the Los Angeles neighborhood of Century City.

Joby expects to create the vertiport by converting a helipad atop Park Elm Residences at Century Plaza’s South Tower for take-offs and landings. The service would let Park Elm residents book Joby flights within greater Los Angeles, where some drives that stretch beyond two hours could be made in as little as five minutes.

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This report was compiled from CoStar’s news publications in the United States, United Kingdom, Canada, France and Germany.