Indian Real Estate Giants Capitalize on Dubai's Property Boom

Bengaluru: Dubai is, literally, a hot property this season. Indian real estate companies are doubling down on Dubai to build a home away from home for resident Indians.

With Dubai logging 125,538 property transactions worth $117 billion in the first half of 2025—up about 25% from a year earlier—Indian developers are pursuing joint ventures and scouting land parcels to tap into the Emirate’s accelerating real estate market.

Casagrand has entered Dubai with a planned 6 million sq ft residential project on Dubai Islands to be developed in phases over three years. Other Indian players, including Skyline, Monarch, Beary’s, Supertech, and several Bengaluru- and Mumbai-based firms, are scouting sites across Business Bay, Dubai Marina, Al Barsha, Jumeirah Village, Dubailand, and other high-absorption corridors.

Sunteck Realty, meanwhile, has mapped out about AED 15 billion in investments over the next three years and has already secured a plot in Downtown Dubai, signaling its push to build a cross-border buyer base.

“Dubai’s speed of execution is a major draw—initial plan approvals can be secured within a week and detailed clearances within a month. The regulatory framework, including RERA’s 30% project-cost requirement before off-plan sales, adds discipline and investor confidence,” said Salman Dawood, Executive Director, Monarch Group, which has started its maiden multi-storey residential project in Hammar Garden in Dubai.

According to a report by Savills, Dubai’s residential real estate market once again reached record levels in Q3 2025, driven by continued population growth, strong investor confidence, and the city’s sustained global appeal.

Transaction volumes remained above the 50,000 threshold for a second consecutive quarter, underlining robust demand across both off-plan and ready segments. Apartments dominated activity, accounting for 86% of total transactions, while off-plan sales represented 69% of all deals, Savills said.

Dubai’s property market remains buoyant, with Q2 2025 sales climbing to $50 billion—up 49% in value and 22% in volume on 53,252 deals—and building on the emirate’s 180,900 transactions in 2024. This momentum is drawing more global developers to launch projects aligned with rising end-user and investor demand.

The influx of high-net-worth individuals, coupled with Dubai’s tax-free ecosystem, competitive ownership costs, and growing preference for long-term residency, continues to fuel homeownership and attract global investors.

“The city’s master-developer model, structured GFA purchase system, and strong transaction volumes make it a strategic expansion market for us. Once we build a capital pool and deepen our investor base, we plan to extend into commercial and hospitality assets,” said Dawood.

Investors, particularly from India, Europe, and the Middle East, are focusing on rental yields, occupancy ratios, and capital appreciation prospects. Long-term visas, favorable ownership rules for foreigners, and consistent population growth have added to the appeal for portfolio-driven buyers.

“We are actively evaluating prime land parcels for our upcoming developments. Our first launch will be on Dubai Islands, and over the next three years, we aim to deliver close to 6 million sq ft of premium residential spaces across the market,” said a Casagrand spokesperson.

Experts say Indian developers entering Dubai are adjusting their strategies to match the expectations of both investors and end users by offering flexible payment plans tied to construction progress, combining ready and off-plan inventory to balance risk, and designing layouts that reflect market preferences, particularly larger two- and three-bedroom formats.

“Among the world’s key luxury capitals, including New York, London, Miami, and Singapore, Dubai stood out as the choice for our international debut,” Kamal Khetan, CMD, Sunteck Realty, told ET recently.

Demand in Dubai through 2025 continues to be supported by long-term residency options such as the 10-year Golden Visa, access to freehold ownership for all nationalities in designated zones, and a regulatory framework anchored by RERA oversight and escrow protection.

Indian developers are expected to increase their share in Dubai’s residential expansion over the next 12–24 months as new launches enter the pipeline. Their participation is adding supply across multiple price brackets and widening options for residents and investors evaluating Dubai as a long-term market.

“For Indian buyers, the entry of familiar developers with established track records offers more clarity on project delivery and product design. For developers, Dubai provides a scalable platform with strong transaction visibility and diversified demand,” said Mazhar Syed Beary, director, Bearys Group.

Sankey Prasad, a global real estate expert, says that the Dubai market has also witnessed residential rents rising across several micro-markets as end-user demand and international investor inflows expand. “Villa communities and mid-market apartment clusters have seen double-digit annual rent increases due to limited ready supply and consistent leasing activity, while capital values have climbed in tandem, supporting investor interest in off-plan projects with extended payment schedules,” he said.

However, Indian developers also face operating challenges, including higher land prices in sought-after districts, inflation in construction materials such as steel, concrete, and mechanical systems, and labor cost escalation linked to workforce shortages. Strict compliance requirements around timelines and escrow management add to execution pressures, prompting firms to strengthen capital planning and form partnerships with experienced local contractors.