UAE's Property Market Faces Uncertainty After Recent Attacks
The retaliatory attacks on Saturday have left property developers in the United Arab Emirates' (UAE) booming real estate market, including Dubai and Ras Al Khaimah (RAK), in shock, as the West Asian conflict escalated. Dubai, UAE's crown jewel and a real estate investor's safe haven, will face near-term impacts across property sales and transactions, investments, and construction.
Dubai's property market has been on a roll, with sales and residential prices surging amid strong global investor demand. In 2025, the UAE led with a net gain of 9,800 millionaires, reinforcing its appeal through low taxes, luxurious living, and economic openness. A number of Indian developers, including Mumbai's Sunteck Realty and Chennai's Casagrand, entered the Dubai property market post-pandemic, taking advantage of the opportunity amid a real estate bull run and high investor activity. Pune-based Mantra Group launched a branded residences project on Al Marjan Island, RAK, in 2025, in partnership with luxury jewellery and watch brand Jacob & Co. Around 90% of the project is sold, with the bulk to UK investors, including those of Indian origin.
“No geopolitical tension usually affects the UAE, so everyone is in a state of shock. Everyone is being cautious. Investors may stall investments till the dust settles,” said Rohit Gupta, CEO, Mantra Group. Gupta is hopeful that its project's construction, which is scheduled to commence in April, will go as planned. Its next project launch is in Dubai's Sport City area. A spokesperson for a Dubai-based real estate firm, on condition of anonymity, said the situation is ‘very stressful’ and that there is no clarity on where it is headed. Spokespersons of Dubai-based Sobha Realty, Casagrand and Sunteck didn't respond to Mint's queries. Many companies have temporarily suspended operations for a week and will take stock of the situation by next weekend.
Investors from India, as well as Indians from across the globe, have been actively investing in Dubai real estate in recent years. The attacks have caused a shock factor, leading to a temporary suspension of operations for many firms. The significant influx of Indian builders faces its first major geopolitical stress test in the UAE. Institutional investors and consultants maintain that residency reforms and wealth migration will sustain the market in the long term. Expect a ‘slow-pacing’ of deal closures as investors wait for the dust to settle before committing fresh capital. The branded and luxury villa markets, which have been on a multi-year roll, are the most sensitive to these shifts in safety perception.
While geopolitical developments may trigger short-term caution and slower deal closures, the core demand drivers—population inflows, business relocations, residency reforms, and sustained global wealth migration—remain intact. As a result, any volatility is likely to be sentiment-led and temporary, with no material disruption expected to pricing trends or ongoing project pipelines,” said Amit Goenka, chairman and managing director, Nisus Finance, an urban infrastructure and real estate finance firm. In February, Nisus Finance said it had expanded its UAE property portfolio with an investment of ₹247 crore in residential apartments at Majan, Dubai.
Our investment thesis in Dubai is built on long-term structural growth, not short-term volatility. We focus on high-quality assets, strong developer partnerships, and disciplined underwriting. Temporary geopolitical uncertainty does not alter the city’s long-term attractiveness as a global hub for capital, trade, and talent,” Goenka added. Property consultants believe the ongoing unrest may trigger a short-term shift in perception of UAE real estate, but it should be temporary.
Investors focused on Dubai may slow-pace any immediate plays in the city's real estate market for a brief time to assess the larger picture. There may be a temporary shift in perception. That said, the UAE's quick steps and strong safety measures show a strong commitment to stability,” said Morgan Owen, managing director - Middle East & North Africa at property advisory Anarock Group. “While Dubai's real estate sector may also see short-term risk perceptions, its robust fundamentals remain intact and will continue to draw investments in the future,” Owen said.
Dubai's real estate market has seen a spurt over the last 7-8 years, driven by the overall stability it offers. Indians have been actively buying real estate in Dubai, most of it in the premium apartment space. The luxury market, comprising villas and row houses, has been on a roll, and we have seen global investors from UK, Russia buying high-end properties in Dubai. Given how effectively UAE responds to any disaster or crisis, it would not be a surprise if things are back to normal soon,” Zia added.
Nisus Finance's Goenka said Dubai’s buyer base is globally diversified. Indian investors, European buyers, and GCC (Gulf Cooperation Council) nationals continue to show interest, particularly in well-located residential and branded developments. Conversations may take longer, but the intent to invest remains strong,” he said.
