Dubai real estate: Indian-origin family hopes to renegotiate price after booking home hours before Iran–US–Israel ‘war’

An Indian-origin investor family from Gujarat, based in Dubai, booked a luxury apartment with a leading developer on February 28. However, within hours of the booking, regional tensions escalated following reports of missile interceptions, prompting the buyers to reconsider their investment decision. The family is now in a dilemma and hopes to renegotiate the price with the developer before making further payments to complete the transaction.

According to Dubai real estate experts, both developers and investors have adopted a ‘wait-and-watch’ approach, with market activity temporarily slowing amid heightened geopolitical uncertainty.

“We booked the apartment on February 28 after a long wait, as earlier we were not getting options on our preferred floors. When the preferred unit became available, we immediately finalised the booking with a top developer in Dubai. However, just hours later, reports of attacks and missile interceptions surfaced,” a family member, requesting anonymity, told Hindustan Times Real Estate.

“We do not know whether the developer will agree to renegotiate, but we will certainly try. We have lived in Dubai for over 30 years and trust that normalcy will return soon. Still, as investors, we feel there should be some benefit while concluding the deal and making the final payment amid the current uncertainty,” the family member said.

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“If sales activity slows amid geopolitical uncertainty, the impact on prices could become visible over the next couple of quarters. A decline in transaction momentum would inevitably exert pressure on prices,” the experts said.

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“Serious investors are sitting on strong liquidity and actively looking for strategic entry points. While both developers and buyers are in a natural ‘wait-and-watch’ mode this week, this is a temporary pause, not a retreat. We witnessed an identical behavioural pattern during COVID-19. The historical data from both Dubai and India clearly show that capital deployed during this brief phase of hesitation yields the strongest long-term gains,” said Ritu Kant Ojha, a Dubai-based real estate advisor and CEO of Proact Luxury Real Estate.

According to Ojha, “the underlying market demand remains robust. Even if a few isolated developers marginally soften prices by two to five per cent to maintain sales velocity, we doubt a market-wide discount cycle will occur.”

“Ultimately, periods of geopolitical friction often serve the market well by shaking out speculative noise and creating a clear acquisition window for serious buyers. Once this immediate news cycle clears, we anticipate a sharp transactional bounce-back, closely mirroring the post-pandemic recovery,” Ojha said.

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Indian metros and Tier-2 cities continue to offer strong opportunities, and NRI investment has risen steadily over the past few years. “However, it is too early to conclude that India will directly benefit from the current developments in the Middle East. Much will depend on how the situation unfolds in the coming weeks. That said, India is already seeing heightened investor interest driven by economic stability and a perception of security,” said Bhavik Thakker, vice president of NAREDCO Nextgen Maharashtra.