As the US-Israel war continues to escalate, various sectors are experiencing significant impacts. Initially, the main areas affected were oil and energy. However, as the conflict intensifies, concerns are now being raised about the potential effects on the real estate sector.
It is expected that mid-level real estate companies can face an impact due to geopolitical conflicts. Let’s take a look at what this could exactly mean for the common people.
So, how will the war impact Dubai’s real estate market, especially the mid‑segment housing category? Real estate experts say that buyers who have already booked homes can look to renegotiate their terms. They could also demand higher discounts. Similarly, prospective buyers are expected to adopt a ‘wait-and-watch’ approach till the current situation dissolves.
In India, investors are expected to redirect capital toward premium residential projects. If the regional conflict continues, the market could see a wider moderation in the following areas:
Transaction volumes
New launches
Investor sentiment and overall buying habits
Negotiations for mid-market segment properties (₹3 crore to ₹8 crore) are likely to intensify. This is because users will look for better deals, and investors will be more strict about new rules. Thus, high-value transactions can remain paused for an extended period.
Looking ahead to the future of real estate, agents can reassess the time frame for large-ticket investments. The real estate agents can also become more cautious about new business commitments. The extended uncertainty is likely to demand a huge shift of capital from Dubai to India. This shift is expected to happen in the coming few weeks.
“If the US-Israel-Iran war drags on, the Dubai real estate market could witness a pullback in momentum across volumes, new launches, investor sentiment, and overall appetite. Buyers may adopt a wait-and-watch approach or negotiate harder for better bargains in the next few months, but everything depends on the duration, how long the conflict lasts,” Amit Goenka, CMD, Nisus Finance, explained further while speaking about the current scenario.
Also read: The Business Case for Real Estate in Dubai: Trends, Investments, and Opportunities