Indian developers in UAE expect 'temporary' disruption as US-Iran war spills over, say Dubai story intact

Dubai is home to a number of Indian developers

• Indian developers see temporary disruption in UAE due to conflict
• Sales slow amid Ramzan and seasonal factors, not just tensions
• Dubai real estate remains strong, Indians lead in property buys

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Indian developers anticipate a temporary disruption in sales and operations in West Asia, particularly in the United Arab Emirates (UAE), as the US-Israel-Iran conflict spills into the broader Gulf region.

Major players, including Sobha Realty, Sunteck Realty, Mantra Properties, and Casagrand Group, have operations in the UAE, while a growing cohort of developers is looking to enter the market to capitalise on the property boom in Dubai, Abu Dhabi and Ras Al Khaimah.

A blip not a shift

There are several Indian-origin developers based in the Gulf, including Rizwan Sajan's Danube Group, which continues to derive a substantial share of its sales from the Indian market.

"At this stage, the impact appears to be driven more by sentiment than by any fundamental structural shift. It would be premature to draw any long-term conclusions at this point. While developments like these can create temporary uncertainty, the underlying fundamentals remain resilient," Sajan said in a statement.

The statement came after Dubai’s international airport, landmark Burj Al Arab hotel and Palm Jumeirah Island suffered damage in retaliatory strikes by Iran on March 1. A day earlier, the US and Israel struck Iran.

Other developers said the crisis appears "one-off", and some may even view it as a market opportunity.

"In the ultra-short term, there is a sentiment of uncertainty due to the ongoing situation. However, investors and end-users are seeing this as an opportunity, and we have received enquiries for the balance inventory of approximately 10 percent in our UAE project," said Rohit Gupta, group CEO of Mantra Properties.

‘A one-off event’

The UAE has always been unaffected by geopolitical crisis and the present situation is being looked at as a “one-off event”, he said. “We are optimistic that as soon as the situation returns to normalcy in a couple of weeks, the momentum will continue to be bullish in the medium and long term,” Gupta said.

Mantra Properties has a branded residence project in Ras Al Khaimah's Al Marjan Island in collaboration with the American luxury watchmaker Jacob & Co. The project remains unaffected, as construction is to begin from April-May, Gupta said.

Almost all Indian developers operating in the Gulf rely heavily on Indian nationals for sales, both from the diaspora across West Asia and Europe and domestic investors looking for international assets.

Despite escalating tensions and economic slowdown, Dubai’s real estate sector had scaled new peaks in 2025, with a record-breaking $187 billion in transaction value across 215,000 deals.

According to local brokers, Indians lead in buying properties in Dubai, followed by nationals from the UK, Russia and Pakistan.

Many of the Indian or Indian-origin developers also offer staggered payment plans to comply with the Reserve Bank of India’s Liberalised Remittance Scheme (LRS).

Sales have been slow this month due to Ramzan, with the approaching summer also a seasonally slow time for real estate deals, as several residents head back home.

Dubai story intact

Dubai’s growth story remains intact, as more high-net-worth individuals move there.

“Affluent Indian investors are expected to allocate increasing capital to overseas assets over the coming years, with the UAE firmly positioned as a preferred destination," said Amit Goenka, chairman and managing director of Nisus Finance.

Indians already constitute the largest foreign investor cohort in the UAE, with a pronounced tilt towards real estate. In 2025, an estimated 9,800 global millionaires relocated to the UAE, reinforcing long-term capital inflows, he said.

Brokers say buyers may choose to explore deals with government-led developers, even as Indian players continue to attract significant interest.

"Among Indian developers, Sobha has a significant legacy in the Middle East market, and their locations are also among the better ones. The other Indian developers are getting started here," said Avishkar Dangat, a Dubai-based real estate adviser.

Amid the ongoing conflict, buyers will likely wait for a month or two before exploring new deals and may prefer government-backed developers such as Emaar and Nakheel, Dangat said.