Yes, water leakage creates moisture problems, which lead to paint losing its ability to stick to surfaces.  Walls that experience excessive moisture may face paint damage through peeling and bubbling effects.

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Can water leakage cause paint damage?
By b2c, 27 March, 2024

Residential and commercial buildings experience a few structural issues because of water leaks. Hidden water damage may lead to the walls being damaged due to peeling paint, stain formation, damp patches and mould growth. The building's structure and indoor air quality suffer from extended exposure to moisture. Early detection of water leakage problems allows timely repairs, preserves the longevity and appearance of walls and ceilings.