The direct impact of the increasing tension between Iran and UAE in West Asia is now visible on the real estate market of Dubai. After the missile and drone attacks on major locations in Dubai in the last few days, Indian rich have distanced themselves from buying new properties there. While Indian investors were making record-breaking purchases till the end of 2025, now there is a ‘wait and watch’ situation in the market due to security concerns.
Comparative situation of property market of Dubai and India
The starting price of luxury properties in Dubai ranges between ₹2.5 crore to ₹3 crore. This price is considered much lower than the prime areas of South Mumbai and Gurugram. Dubai has always been a favorite destination for Indian investors because the tax rules there are quite easy and rental income is good. The investment situation can be understood from the figures given below:
Details Dubai (UAE) India (Mumbai/Gurugram) Average Rental Yield 8% to 10% 2% to 3% Market Share (2025) 10% (Indian) – Property Cost 20-25% Affordable Expensive Tax Rules Zero Property Tax Taxes Applicable
Impact of Iranian attacks on investment and investors
Investor confidence has been shaken after Iran targeted important areas like Terminal 3 of Dubai International Airport and Jebel Ali Port. According to reports recorded till 4 March 2026, there have been a large number of ballistic missile and drone strikes. Because of this, many Indian buyers who were about to make big deals have pulled back.
Builders Status: Big builders like Emaar, DAMAC, Sobha and Danube are trying to woo Indian customers.
Expert opinion: Experts say that this is a temporary pause and people have become more selective now.
Flight Update: In view of the tension, Air India and Indigo have made special preparations for the convenience of Indians.
Golden Visa: Although security concerns have increased, zero capital gains tax and golden visas still remain the center of attraction.