Indians and people of Indian origin emerged as significant contributors to the Dubai real estate market in the last two years. The escalating tension and ongoing conflict in West Asia have impacted Dubai as well. Will the allure of the emirate’s real estate market still draw investment? Mint explains.
How important are Indian investors to Dubai?
Indian nationals are the largest foreign real estate investor base in Dubai, accounting for over 20% of all foreign property purchases. In 2025, Indians and people of Indian origin invested up to ₹95,000 crore in residential properties, according to estimates by Anarock Property Consultants. This is a sharp rise from 2023, when they bought properties amounting to ₹37,000 crore. Higher rental yields, particularly in residential properties, easy entry, the booming property market, proximity, and the investor-friendly UAE Golden Visa, which offers tax benefits and long-term residency. Not only individual investors, but several Indian developers in recent years have also announced plans to set up operations in the emirate to monetize its real estate prospects.
What kind of impact has Dubai witnessed so far?
Dubai’s real estate market relies heavily on international investors and expatriate residents, led by Indians and followed by UK residents/citizens. The perception of rising geopolitical risk has likely led investors to temporarily adopt a wait-and-watch approach. Such sentiment shifts typically affect off-plan or under-construction property purchases and speculative investments first, as these segments tend to be more sensitive to market confidence. Investors were also lured by the 60-70% rise in property prices that Dubai witnessed since 2021. With prices set to correct in the near term, property consultants expect Indian and other investors to hold off on closing deals until there is clarity on where Dubai is headed.
How has India’s real estate market fared in comparison?
India’s real estate market recovered sharply after the pandemic, with the residential sector leading the turnaround. Home sales have touched new milestones each year since then. The commercial office, hospitality, and logistics sectors saw a slightly delayed but strong recovery. Institutional investments have been healthy, and the turnaround has brought back investors to the residential market in particular. The spurt in momentum has also seen a return of non-resident Indians (NRIs) to Indian real estate, which had been in a prolonged slowdown before the pandemic.
Will India benefit from Dubai’s setback?
Property analysts believe the real estate sector in India has reached its peak. Housing sales have already started to plateau after a sharp year-on-year rise. Home prices have also peaked somewhat, leaving a sizeable segment of buyers and investors out in the cold. While the market remains stable, keen investors have already invested capital over the last five years or so. Therefore, it is unlikely that India will benefit significantly from the crisis unfolding in Dubai. However, if India sees a steady return of people from Dubai, it could lead to some investment in the domestic property market.
Where will Indian investors invest then?
Ultra-high-net-worth individual investors from India have been strategically buying properties in the UK, and that will continue. The UK, far more expensive than Dubai, is preferred for capital appreciation and for education-linked buying by students from HNI families studying there. Indians and NRIs also invest in Canada. The short-term disruption and the imminent price correction in Dubai may prompt Indian buyers to renegotiate deals. Some may smell an opportunity to explore distressed deals in the emirate, though they may be few and far between. How quickly investor confidence returns once the geopolitical environment stabilises will be worth watching.