Why Abu Dhabi is preferred over Dubai for real estate investments amid US-Iran war

Abu Dhabi has emerged as a preferred destination over Dubai for real estate investors navigating uncertainty from the US‑Iran war, industry leaders said. Amit Goenka, founder of Nisus Finance, argued that institutional participation and tightening office supply make Abu Dhabi more attractive, while Santosh Kumar, vice chairman of Anarock Group Business Services, reaffirmed Dubai's enduring appeal for Indian buyers. Speakers highlighted specific market metrics — a 5% office-space availability against 15% demand, a 7% price uptick during the March–April peak of the conflict, and Indians accounting for 26% of Dubai transactions from March to June — as evidence of shifting investor behavior.

"There is a 5 per cent availability of office spaces in comparison to a 15 per cent demand. So, it is a great place to invest right now," Goenka said, pointing to relatively tight commercial supply in Abu Dhabi as a key near‑term driver of yields.

Goenka and Kumar discussed global capital flows and the UAE corridor at a session on real estate investment dynamics. Goenka ranked Abu Dhabi higher than Dubai on the market chart, citing the presence of institutional players and accelerating economic activity. He noted that the US‑Iran war is a global event with clear implications for trade, oil prices and gas supply, but stressed that rental demand in the UAE has not fallen away. "In terms of futuristic ideas, it comes with a little bit of a pause. But, people still have faith in the UAE," he said.

Both speakers acknowledged Dubai's strong pull for Indian investors — driven by high rental yields, tax efficiency, ease of ownership, residency‑linked programmes and world‑class infrastructure. Kumar emphasised Dubai's connectivity and regulatory convenience: "Dubai is among the places in the world that offer safe returns, adding that anyone who wants to invest in the UAE should not hold back." He also pointed to recent signs of stabilisation following a speculated agreement between Iran and the US, observing hope that the conflict will settle and benefit regional markets.

• Top investment inventory in Abu Dhabi: office spaces, apartments and villas (Goenka).
• Office supply/demand cited: 5% availability vs 15% demand.
• Price movement during peak conflict (Mar–Apr): ~7% overall increase, driven by largely unlevered, cash buyers (Goenka).
• Indian share of Dubai transactions (Mar–Jun): 26% (Kumar).
• Currency/return note: Dubai's dollar peg can yield an annual ~5% currency gain, per Goenka.

Goenka argued that Dubai is maturing as a market: rapid early gains gave way to greater sophistication and a stronger emphasis on research and exit cycles. "Because of the impetus of the war, it is becoming a mature market where only a sophisticated investor would go," he said, adding that many UAE buyers are unlevered and prepared to wait for yields without distress.

Looking ahead, leaders expect continued investor selectivity but sustained activity. Kumar highlighted ongoing opportunities and price corrections that are drawing Indian buyers, while Goenka urged investors to view black‑swan events as windows for acquisition: "Any black swan event throws up opportunities." With supply tight in Abu Dhabi and resilient demand across the UAE, capital is likely to flow selectively toward assets that promise yield and stability as geopolitical uncertainty plays out.