2 weeks ago
Dubai Property Holds Appeal as Indian Buyers Turn Risk-Aware
A conflict involving Iran has made some people more careful about buying property in Dubai.
Indian buyers are still interested, but they are checking properties more closely before spending money.
They are looking at the location, the developer, rental income and how easily they could sell later.
Experts say Dubai has not experienced a complete loss of demand.
Some data shows fewer transactions, while average prices have still increased.
Other reports say prices fell by 4% to 7% in some areas between February and April 2026.
Developers are usually offering easier payment plans instead of big discounts.
The experts disagree about exactly where prices are going, but they agree that Dubai remains attractive to many investors.
Buyers are now treating Dubai as a market with opportunities and risks rather than as a completely risk-free place.
Indian buyers have become more selective, but experts say demand has not disappeared amid the Iran conflict.
ANAROCK reported H1 2026 residential transactions of about AED 225.7 billion, down 16%, while average prices rose 6% to roughly AED 1,900 per square foot.
Dubai Land Department recorded 86,005 real estate transactions worth AED 286.43 billion in H1 2026.
Developers generally have not offered major price cuts, instead using longer payment periods, post-handover plans and fee waivers.
Experts disagree on prices, describing the market variously as rising, temporarily softer in some areas or becoming more sustainable.
- Who
- Indian property buyers, Dubai developers and real estate experts Rizwan Sajan, Prince Dhariwal and Porush Jhunjhunwala.
- What
- Dubai’s property market is being assessed as Indian buyers become more cautious during the continuing regional conflict.
- Where
- Dubai and other parts of the United Arab Emirates, including Abu Dhabi.
- When
- The United States and Israel launched strikes on Iran in February 2026; the article discusses market data from the first half of 2026 and developments through July 2026.
- Why
- The conflict has increased uncertainty, prompting buyers to examine risks, financing costs, rental income and resale prospects more carefully.
Cautious or Softer Market View
Continuing Market Confidence
Property prices
Cautious or Softer Market View
Porush Jhunjhunwala said prices fell about 4% to 7% in some areas between February and April 2026, while transaction volumes declined from 2025’s elevated levels.
Continuing Market Confidence
Rizwan Sajan expects prices to continue rising because construction costs are increasing and Dubai rental income remains comparatively attractive.
Investor confidence
Cautious or Softer Market View
Prince Dhariwal said Indian buyers are using a risk-aware lens and may wait for greater clarity on oil prices, flights, tourism and the wider regional economy.
Continuing Market Confidence
Sajan and Jhunjhunwala said serious, experienced and wealthy investors are still participating because of Dubai’s infrastructure, rental potential, tax environment and economic diversification.
Meaning of weaker activity
Cautious or Softer Market View
The 16% decline in ANAROCK’s H1 residential transaction value suggests that buyers may be completing fewer or smaller deals.
Continuing Market Confidence
Jhunjhunwala described the slowdown as a minor hiccup and a transition from unusually rapid growth toward a healthier, more sustainable market rather than a broad correction.
Key facts
- H1 2026 residential transactions
- ANAROCK reported approximately AED 225.7 billion, down 16% year-on-year.
- H1 2026 average prices
- Average residential prices rose about 6% to roughly AED 1,900 per square foot, according to ANAROCK.
- Dubai Land Department H1 data
- Dubai recorded 86,005 real estate transactions worth AED 286.43 billion.
- Indian buyer share
- Indians represented 22% of Dubai’s foreign residential buyers in 2025.
- UAE base rate
- The Central Bank of the UAE kept its base rate at 3.65% on July 29, 2026.
- Price incentives
- Experts said major discounts were uncommon; developers more often offered flexible payment plans or fee waivers.
- Ready-to-move property activity
- Ready-to-move properties accounted for more than AED 146.7 billion across 27,200 transactions in H1 2026.
Quotes
Rizwan Sajan
Founder and Chairman of Danube Group
“There was definitely some caution in the beginning, but six months later the caution has not led to a major fall in demand.], ”
financialexpress.com
Sources
Related news
Indian Investors Rethink UAE Exposure Without Leaving Dubai
India’s Real Estate Sector Seen Resilient Despite West Asia Crisis
Gold Prices Fall on September 2 Amid Dollar, Oil Pressures
Multiple Explosions Rock Dubai; India Holds Repo Rate at 5.25%
Indian Gold Prices Unchanged Amid Rising Fed Rate Hike Bets