From petroleum to construction materials, multiple sectors continue to feel the ripple effects of the ongoing West Asia conflict, now over a month old. With tensions escalating daily, uncertainty has gripped global markets, directly impacting supply chains and input costs across industries.
However, amid these challenges, a potential silver lining is emerging for Indian real estate. Developers across the country are reporting a noticeable surge in property enquiries from the Middle East, hinting at a possible shift in investment trends.
Indians: A Key Buyer Base in the Middle East
Indians have long been among the most prominent investors in the Middle Eastern real estate market, particularly in Dubai. According to a report by Anarock Consultants, Indians were the largest group of foreign buyers in Dubai’s residential market in 2025, with investments estimated between Rs 85,000 crore and Rs 95,000 crore.
However, the ongoing conflict has prompted many affluent Indian investors to adopt a cautious ‘wait-and-watch’ approach, delaying or reassessing their investment plans in the Gulf region.
An Opportunity for the Domestic Market
India’s relatively stable political and economic environment is now influencing the mindset of NRIs residing in Gulf nations. As uncertainty looms over regional markets, many are considering redirecting their investments back home—particularly into India’s luxury residential segment.
Developers in key metro cities are already witnessing this shift. Bengaluru-based Puravankara, for instance, has reported a significant spike in enquiries from the Middle East for its premium housing projects. The developer has observed nearly a 60% increase in enquiries through its Middle East office, driven largely by buyers who had previously deferred their purchase decisions.
Typically receiving 150–200 enquiries per week, the company has seen volumes rise sharply in recent weeks, as shared by Ashish Puravankara, Managing Director.
Echoing similar sentiments, Kuldeep Sehrawat, Chief Product Officer at Tribeca Developers, notes, “We are clearly witnessing a directional shift in NRI sentiment, particularly from the Middle East. What was earlier a one-way investment flow into markets like Dubai is now becoming more balanced, with capital now seeking stability back in India. I believe a broader trend is emerging—global capital will increasingly view India as a stable, high-growth real estate destination.”
Indian Real Estate: On a Rebound Path
Despite short-term concerns such as rising construction costs and supply chain disruptions, developers remain optimistic about the sector’s long-term trajectory.
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Ajay Nahar, Managing Director of Nahar Group, Pune, highlights a broader global interest: “NRIs from Hong Kong and Singapore will soon return to invest in Mumbai real estate. We may also see increased participation from investors in Africa and other regions that traditionally invested in the UAE, now considering India as a viable alternative.”
What Lies Ahead?
While metro cities such as Delhi-NCR and Mumbai continue to dominate as preferred investment destinations, industry experts believe the next wave of growth could extend to Tier II and Tier III cities.
This shift, however, will depend heavily on developers’ ability to market effectively, deliver premium-quality products, and target the right customer base.
Nahar adds, “We expect significant growth in cities like Noida, Gurgaon, Hyderabad, Bengaluru, and Lucknow towards the end of the year. Demand could rise by over 20%, accompanied by a noticeable increase in property values.”
According to Kuldeep Sehrawat, this transition could also redefine the future of real estate in India:“The ongoing conflict will fundamentally reshape how real estate is perceived—not just as built space, but as a resilient, self-reliant ecosystem.”
Conclusion
While the West Asia conflict continues to disrupt global markets, it may simultaneously trigger a strategic reallocation of capital. For Indian real estate, this could mark the beginning of a more diversified, resilient, and globally attractive growth phase—driven by renewed NRI confidence and shifting investment priorities.