Indian Developers in UAE Anticipate Temporary Disruptions Amid US-Iran Tensions

Indian Developers Anticipate Temporary Disruption in UAE Sales Due to US-Israel-Iran Conflict

Key Points:

• Indian developers operating in the UAE, including Sobha Realty, Sunteck Realty, Mantra Properties, and Casagrand Group, anticipate a temporary disruption in sales and operations due to the escalating US-Israel-Iran conflict.
• The conflict has resulted in damage to Dubai's international airport, the Burj Al Arab hotel, and the Palm Jumeirah Island, sparking concerns about the impact on the UAE's real estate sector.
• Despite the uncertainty, Indian developers remain optimistic about the long-term prospects of the UAE market, with many viewing the crisis as a "one-off event" that will not significantly affect the sector.

Market Analysis:

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• The UAE's real estate sector had scaled new peaks in 2025, with a record-breaking $187 billion in transaction value across 215,000 deals.
• Indian nationals lead in buying properties in Dubai, followed by nationals from the UK, Russia, and Pakistan.
• Indian developers offer staggered payment plans to comply with the Reserve Bank of India's Liberalised Remittance Scheme (LRS), making it easier for Indian buyers to invest in UAE real estate.

Industry Insights:

• Rizwan Sajan, chairman of Danube Group, stated that the impact of the conflict appears to be driven more by sentiment than by any fundamental structural shift.
• Rohit Gupta, group CEO of Mantra Properties, said that the crisis is viewed as a "one-off event" and that investors and end-users are seeing it as an opportunity.
• Amit Goenka, chairman and managing director of Nisus Finance, stated that Dubai's growth story remains intact, with affluent Indian investors expected to allocate increasing capital to overseas assets over the coming years.

Outlook:

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• Buyers may choose to explore deals with government-led developers, such as Emaar and Nakheel, while Indian players continue to attract significant interest.
• The temporary disruption is expected to last for a month or two, after which the momentum is likely to continue to be bullish in the medium and long term.