The US–Israel–Iran war appears to be impacting Mumbai’s rental market, with brokers reporting a noticeable rise in inquiries from non-resident Indians (NRIs) based in Dubai and other Gulf countries for short-term rentals. Over the past 10 days, affluent individuals from the region have been exploring rental options in the city as a precaution amid rising uncertainty, according to real estate consultants.
Most of this demand is for short-term leases of six months to a year, with many prospective tenants taking a wait-and-watch approach, they said.
“We have seen a surge in inquiries from NRIs based in Gulf countries over the past 10 days, particularly for short-term rentals of at least a year. Initially, many hoped the situation would stabilise quickly. Still, with the conflict continuing, they are now actively exploring rental options in Mumbai,” said Vijay Kandhari of B Kandhari Properties LLP.
“Micro-markets such as Bandra and Khar remain highly preferred due to the lifestyle they offer. Most inquiries are for 3 and 4-BHK apartments, and a monthly budget of around ₹5 lakh is sufficient to secure a good-quality home in these areas,” Kandhari said.
Which areas in Mumbai are NRIs from Gulf countries renting?
According to real estate consultants, demand is concentrated in premium micro-markets such as Andheri, Bandra, Khar, Lower Parel, and South Mumbai, where strong connectivity and lifestyle offerings attract returning NRIs.
“I am seeing inquiries from NRIs, particularly from Dubai and other Gulf countries, for short-term rentals in Mumbai. These are largely affluent individuals seeking luxury apartments in areas like Andheri, Bandra, Lower Parel, and South Mumbai, with budgets ranging from ₹3 lakh to ₹7–8 lakh per month. Most are looking at leases of at least a year as they adopt a wait-and-watch approach amid ongoing geopolitical tensions,” said Rafique Merchant, a Mumbai-based real estate consultant.
According to Merchant, some of these individuals had previously moved out of the country but are now considering a temporary relocation, and many are also wealthy Indian brokers in Dubai.
A few NRI investors who had earlier preferred Dubai are now evaluating India for better deals, Merchant said.
What are short-term rentals?
Short-term rentals are furnished properties rented out for brief stays, typically from a few days to a few months, rather than long-term leases (usually 11-12 months and more). On a per-month basis, short-term rentals are usually more expensive than conventional rentals.
Emaar founder’s take on the Dubai real estate market
Emaar founder Mohamed Alabbar earlier told CNBC, “In a situation like this, there could be some cooling, but I don’t really see it. Consumer confidence may be shaken slightly, but the country’s policies restore confidence quickly.”
Alabbar dismissed reports of a potential 15% price correction in Dubai as ‘very unrealistic,’ noting that while consumer confidence may be ‘shaken a little bit,’ government policies typically restore it quickly.
Amid the ongoing US–Israel–Iran war and concerns about a cooling property market, Emaar founder Mohamed Alabbar said Dubai’s real estate demand remains strong, with sellers holding firm on prices, highlighting the market’s resilience despite geopolitical tensions.
Also Read: Dubai real estate: X post suggests Mumbai, Bengaluru, GIFT City as alternatives, sparks debate
Dismissing a potential 15% price correction as “very unrealistic,” Alabbar, in an interview with CNBC, indicated that the new property supply expected in 2026 and 2027 could help moderate price growth and support sustainable long-term development.
