Despite ongoing geopolitical tensions in West Asia, Indian high-net-worth individuals (HNIs) are steadfastly holding onto their luxury real estate assets in Dubai, even as the market experiences a temporary slowdown in new deal momentum.
Key Points
- Indian high-net-worth individuals (HNIs) are not liquidating their trophy assets in Dubai's luxury real estate market despite geopolitical tensions in West Asia.
- Any 'discounted' resale deals observed are primarily due to investor-level liquidity stress rather than a flight from the region.
- Indians remain the largest foreign buyer group in Dubai, contributing approximately 22 per cent of purchases in the first nine months of 2025.
- Dubai's luxury housing market is heavily investor-driven, with strong post-pandemic price appreciation of 60-75 per cent since 2021.
- While new investments may pause for 2-3 years due to perceived shifts in Dubai's 'safe haven' status, existing Indian HNI owners continue to hold core assets.
Ongoing geopolitical tensions in West Asia have slowed deal momentum in Dubai’s luxury residential market, but industry experts say there are no signs of Indian high-net-worth individuals (HNIs) exiting their marquee assets in the emirate.
“There are definitely no signs of wealthy Indians liquidating trophy assets in Palm Jumeirah or Emirates Hills to move out of the Gulf,” said Ritu Kant Ojha, chief executive of Proact Luxury Real Estate, a Dubai-based consultancy catering to HNIs across Indian and Asian markets.
He added that isolated “discounted” resale deals visible in the market are largely the result of investor-level liquidity stress rather than any geopolitical flight from the region.
Indian Investment Dominance
Foreign investors continue to dominate Dubai’s housing market.
According to Veer & Sant Real Estate, investors from more than 150 countries purchased property in the first nine months of 2025, with overseas buyers accounting for over 40 per cent of total residential ownership.
Indians remained the largest foreign buyer group, contributing roughly 22 per cent of purchases.
The expanding base of ultra-wealthy Indians is also supporting sustained outbound investment.
According to The Wealth Report 2025 by Knight Frank, India’s billionaire population rose 12 per cent between 2023 and 2024 to 191 individuals, compared with just seven new billionaires added in 2019.
Dubai’s luxury housing segment remains heavily investor-driven, with leveraged buyers frequently rotating capital across projects through developer payment plans.
“When a large payment milestone hits, and liquidity is stretched, some investors are forced to liquidate assets quickly.
"That is often mistaken for distress linked to geopolitical developments, which is usually not the case,” Ojha said.
Market Sentiment and Outlook
Anuj Puri, chairperson of Anarock Group, said the market is witnessing “a temporary sentiment shock”, reflected in slower bookings and increased renegotiations rather than structural investor exits.
“Existing Indian HNI owners continue to hold core trophy assets in locations such as Palm Jumeirah, Emirates Hills, and Downtown Dubai,” he said, adding that investors are stress-testing portfolios and becoming more selective about fresh acquisitions.
According to Anarock, Dubai recorded nearly AED 917 billion worth of real estate transactions in 2025, the highest on record, with residential transactions alone accounting for around AED 538 billion across roughly 200,000 deals.
Residential property prices have risen 60–75 per cent since 2021, marking one of the strongest post-pandemic housing cycles globally.
Industry experts say this growing pool of capital, combined with Dubai’s tax-efficient regime, dollar-linked asset exposure, residency incentives such as the Golden Visa, and rental yields of 6–9 per cent, continues to anchor Indian investor interest.
The near- to medium-term outlook for Indian investment in Dubai real estate remains structurally positive, with only a short-term, sentiment-led pause visible.
Future Investment Trends
Wealthy Indians are also actively scouting for opportunities in the Dubai market.
“They are waiting to see if they can pick up a distressed asset from an overleveraged flipper before the market fully normalises,” Ojha added.
Puri said Indian HNIs are exploring better risk-adjusted pricing for new investments in the current environment.
However, one long-term impact of the conflict could be a slowdown in new investments in established hubs such as Dubai and Abu Dhabi for a few years.
“Dubai and Abu Dhabi were seen as safe havens, with no one expecting the conflict to reach there,” Shekhar Patel, national president of realty industry body Confederation of Real Estate Developers’ Associations of India, told Business Standard.
The situation has since changed.
“As a result, people looking to invest in Dubai might pause for another two to three years,” Patel said, adding that existing investors may also diversify towards markets such as India.
“Indian real estate may benefit from this conflict in the long run,” he added.
