Indians press pause on Dubai real estate amid rising West Asia conflicts

Developers planning new projects in the region may defer new launches

Indians exploring Dubai’s real estate market have shifted into a wait-and-watch mode as geopolitical tensions in West Asia escalate. Industry stakeholders say the response reflects caution and recalibration rather than withdrawal, with decision-making slowing temporarily instead of stalling altogether.

 

Amit Goenka, chairperson and managing director (MD) of Nisus Finance (NiFCO), said, “The evolving geopolitical situation in the region has understandably led to short-term caution among investors, including Indian buyers, with a slight pause in decision-making and a more selective approach to acquisitions.”

 

Morgan Owen, MD, Middle East and North Africa (MENA), Anarock group, described the situation as “very much in flux”, making it too early to gauge any lasting on-ground impact. “In the near term, investors focused on Dubai may slow immediate market plays to assess the broader picture. There may be a temporary shift in perception.”

 

From the brokerage side, Ritu Kant Ojha, a Dubai-based real estate strategist and chief executive officer (CEO) of Proact Luxury Real Estate, said he has not seen any panic or deal cancellations. “Indians consistently rank among the top buyers in Dubai. It is a completely natural response to take a temporary wait-and-watch approach. I don’t foresee any meaningful impact on pricing. What we are seeing is a brief logistical pause, not a structural shift in the real estate market.”

 

According to Knight Frank, transaction volumes in Dubai’s residential real estate market hit an all-time high of 205,400 deals in 2025, up 18 per cent year-on-year (Y-o-Y). Total sales value rose even faster, climbing 25 per cent Y-o-Y to AED 544.2 billion, driven by activity in the prime and ultra-prime segments.

 

Market participants stress that the current pause is not comparable to a structural downturn. There is no evidence of widespread cancellations or distress-driven price corrections. Instead, buyers are stepping back briefly to monitor developments. In some cases, flight disruptions have slowed physical movement, but Dubai’s digitised property ecosystem allows payments, documentation, and secondary sales to be completed online, limiting transactional disruption.

 

Rizwan Sajan, founder and chairperson of Danube Group, said, “At this stage, the impact appears to be driven more by sentiment than by any fundamental shift. It would be premature to draw long-term conclusions. While such developments can create temporary uncertainty, the underlying fundamentals remain intact. I remain confident about a steady and sustainable growth path.”

 

Sandeep Ahuja, global CEO of Atmosphere Living, said, “While we hope tensions de-escalate, we don’t see any major long-term impact on Indian buyer sentiment. Dubai’s real estate market has strong fundamentals and a track record of resilience. It remains a lucrative investment avenue with clear appreciation potential, and buyers understand this. Anticipated unrest in other parts of West Asia is, in fact, acting as a catalyst for Dubai’s property market.”

 

Industry leaders underline that Dubai’s strong fundamentals, regulatory clarity, and crisis-management record continue to anchor investor confidence.

 

“Real estate activity by Indians in the United Arab Emirates, particularly Dubai, is likely to remain resilient. While a short-term slowdown is possible as investors reassess global risks, the long-term outlook remains positive,” Goenka added.

 

Ojha observed that a market crash typically requires a fundamental economic trigger. “Dubai still faces a demand-supply mismatch, with limited premium inventory. If some buyers step back, others with ready capital step in. In periods of uncertainty, smart money looks for value. Even a 1 to 3 per cent negotiation window in a market this active is enough to close deals quickly, which helps stabilise prices. Developers today are financially strong and under no pressure to cut prices, even if this situation were to persist for months, which it won’t,” he said.

 

According to DXB Interact, the median property price in Dubai stood at AED 1,660, up 8 per cent between January and December 2025.