Indian Investors Flock to Dubai's Luxury Real Estate Market
Young Indians are increasingly investing in Dubai's luxury real estate, attracted by high rental yields, rising property values, and the UAE's Golden Visa programme.
Real EstateDubaiSobha RealtyIndian InvestorsLuxury PropertyReal Estate MumbaiJun 04, 2025
“The Indian diaspora is one of our largest customer bases. There’s been a 5% growth in the number of Indian customers buying our homes in the last one year,” said Ravi Menon, chairman, Sobha Group.
Sobha Realty, the Dubai-based real estate arm of Sobha Group, is among the three largest real estate players in the city, along with Emaar and Damac. The firm has sold around 8,894 units in the UAE in 2024, of which 96% were apartments and the rest were villas, said Menon. “In 2025, Sobha Realty is targeting sales of AED 30 billion. This ambitious goal is backed by the planned launch of up to 10 major masterplan developments in the UAE, along with our strategic expansion into the USA and Australia,” said Menon.
Young buyers usually go for one- or two-bedroom luxury apartments because they offer good rental returns of 7–10% and hold their value well. With property prices in the UAE rising about 16–17% each year, investing here looks very promising.
“In apartments, the unit size bracket of 500–1,000 sq ft contributed the maximum to overall sales (77% of all apartment units sold under this bracket), whereas, for villas, the unit size bracket of up to 5,000 sq ft contributed the most (30%),” said Menon. Smaller units are the most coveted, given that these are the easiest to resell as well as rent out.
Notably, the UAE is the only West Asian country featured in the Henley & Partners Opportunity Index 2025 and is ranked in seventh position with an opportunity score of 67%, boasting top-tier employment and earning prospects. The country’s economic resilience, favourable tax policies, and world-class infrastructure are key attractions. Dubai’s Golden Visa programme provides a 10-year renewable residency for a minimum property investment of AED 2 million (about Rs 4.7 crore), making it an attractive choice for Indian investors looking for long-term residency, tax efficiency, and capital appreciation.
In 2025, Sobha Realty launched several key masterplans, including Sobha Solis, Sobha Central, and Downtown UAQ. “Additionally, we successfully handed over Creek Vistas Grande eight months ahead of schedule, reinforcing our commitment to timely delivery. We look forward to delivering more projects throughout the year,” added Menon.
In 2024, Sobha had announced its plan to enter the lucrative US market, focusing on residential properties. “We are progressing steadily with our plans to launch our first master plan in Texas, US, targeted for 2025. We have already established our office there, with our CEO and a dedicated team in place. A similar setup is underway in Australia as well. Both these international expansions are on track and are scheduled to be officially launched later this year,” he added.
Brand partnerships with the International Indian Film Academy Awards (IIFA), the International Cricket Council (ICC), and the Arsenal Football Club have helped Sobha connect with global audiences, especially the Indian diaspora, in the UK, Dubai, and elsewhere.
The growing trend of multinational companies establishing global offices in Dubai is fueling demand for small but luxurious housing. Many businesses are relocating top talent from sectors like IT, banking, and financial services to Dubai, creating strong demand among young professionals for smaller luxury units, both for purchase and rent. While the 25–35 age group is growing rapidly, the largest buyer segment remains the 40–50-year-olds, followed by the 50–60 age group, who have greater buying power and tend to prefer larger apartments, villas, and beachfront mansions. Additionally, young crypto millionaires and tech entrepreneurs find Dubai an ideal hub for their business and investment ventures.
Frequently Asked Questions
What percentage of Sobha Realty's customers in Dubai have an Indian connection?
17% of Sobha Realty’s luxury housing customers in Dubai have an Indian connection.
What is the target sales for Sobha Realty in 2025?
Sobha Realty is targeting sales of AED 30 billion in 2025.
What are the most popular unit sizes for apartments and villas in Dubai?
For apartments, the most popular unit size is 500–1,000 sq ft, contributing 77% of all apartment units sold. For villas, the most popular unit size is up to 5,000 sq ft, contributing 30% of all villas sold.
What is the minimum property investment required for a Golden Visa in Dubai?
A minimum property investment of AED 2 million (about Rs 4.7 crore) is required for a Golden Visa in Dubai.
What are Sobha Realty's international expansion plans?
Sobha Realty plans to launch its first master plan in Texas, US, in 2025 and has established an office there. A similar setup is underway in Australia, with both expansions scheduled to be officially launched later this year.
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