Why Indian Investors Are Pouring Money into Dubai Real Estate

For generations, property ownership for Indians has been closely associated with permanence, a home anchored in family, memory, and long-term belonging. That lens, however, is shifting. Today, real estate decisions are increasingly shaped by financial logic, where returns, transparency, and exit flexibility are beginning to matter as much as emotional value.

This change has sharpened comparisons between domestic real estate and global markets, with Dubai steadily emerging as a serious investment contender. The growing flow of Indian capital into the emirate reflects not just aspiration but a measured reassessment of risk, return, and reliability.

Indian participation in Dubai’s property market has gained significant momentum. According to the Betterhomes Residential Market report, Indians have consistently featured among the top three foreign nationalities buying real estate in the emirate, alongside British and Russian investors. More tellingly, their share of transactions has risen sharply in a relatively short span.

In 2023, Indian buyers accounted for about 12 percent of foreign property transactions in Dubai, translating into investments of roughly AED 15.9 billion. Just a year later, that share had nearly doubled to around 22 percent, with Indian capital flows estimated at about AED 35 billion. The momentum has carried into 2025 as well, with Indians accounting for close to 23 percent of foreign transactions in the first half of the year, even as overall market activity remained robust, said Sankey Prasad, chairman, Colliers Project Leaders–Middle East.

This surge is unfolding against a broader upswing in Dubai’s real estate market. According to data shared by Squareyards, in the third quarter of 2025 alone, the city recorded more than 50,000 residential transactions, about 20 percent higher than a year earlier. Transaction values climbed nearly 12 percent to around AED 95.6 billion, pointing to sustained demand across price points and locations.

Dubai’s core attraction lies in the predictability of its real estate ecosystem. The absence of taxes significantly improves long-term net returns. According to Square Yards co-founder and chief business officer Anupam Rastogi, “Beyond financial metrics, Dubai offers currency diversification, political stability, and residency-linked investment pathways. World-class infrastructure, global connectivity, and a strong institutional tenant base position real estate as both an investment asset and a long-term lifestyle hedge for families with international exposure.”

Rental yields are another factor. Average gross yields of 7–9 percent compare favorably with major Indian cities, where yields are often in the 2–4 percent range. Freehold ownership structures and transparent title systems further strengthen investor confidence. “Real estate in Indian cities has its own set of challenges, including delayed project completion, lack of transparency in pricing, hostile and frequently changing regulations, the legal system taking a long time to solve disputes, inconsistent enforcement of RERA, and high costs involved with stamp duties and registration,” RPS Group director Aman Gupta said.

Beyond pure returns, residency-linked incentives enhance the investment case. Property investments of AED 2 million (around Rs 4.6 crore) make buyers eligible for a 10-year renewable Golden Visa, allowing them and their families to live, work, and operate businesses in the UAE.

Equally notable is the changing profile of Indian buyers. With the average ticket size estimated at Rs 4–4.5 crore, Dubai real estate is no longer the preserve of ultra-high-net-worth individuals. Senior professionals, entrepreneurs, and mid-sized business owners are now increasingly active, signaling a shift towards treating overseas property not as a niche or aspirational purchase but as a mainstream investment within a diversified portfolio.

Data shared by Squareyards shows that nearly 73 percent of all homes sold in Dubai were priced below AED 2 million. About 29.5 percent of these transactions were below AED 1 million, while 43 percent fell in the AED 1–2 million bracket. This affordability supports liquidity and makes portfolio-sized investments more feasible for Indian buyers.

On a price-per-square-foot basis, Dubai residential real estate typically ranges between the equivalent of Rs 26,000 and Rs 44,000, depending on location and project quality. While this is higher than city-wide averages in Indian metros—Mumbai at around Rs 13,250 and Bengaluru between Rs 10,000 and Rs 25,000—it comes with materially higher rental yields.

For many Indian investors, the decision is no longer binary. Dubai offers globally competitive yields, tax efficiency, and diversification, while India provides long-term growth driven by domestic demand. Together, they are increasingly being treated as complementary pillars within a diversified real estate portfolio.

The growing interest in Dubai does not imply an exit from Indian real estate. “It is not an either-or decision. Indian luxury housing continues to attract high-net-worth individuals, particularly for self-use and long-term holdings. Investors with business interests or family members based in the UAE, however, see clear logic in establishing a residential and investment presence there,” said Morgan Owen, managing director–Middle East & North Africa at ANAROCK Group.

The January-June 2025 period saw the luxury housing market in India grow by a staggering 85 percent YoY, with nearly 7,000 units sold across the top seven cities—Delhi-NCR, Mumbai, Pune, Bengaluru, Kolkata, Hyderabad, and Chennai, a Lodha Group report released in October said.

For Indian investors, the trend is not about exiting India but about complementing domestic holdings with exposure to a transparent, income-generative, and internationally aligned real estate ecosystem. India and Dubai serve different investment objectives, together, they increasingly form two pillars of a globally diversified Indian real estate portfolio.

Dubai real estate is not without risks. Concerns around oversupply and market cycles remain, particularly in certain locations and segments. Regulatory shifts, while currently investor-friendly, can influence demand over time. Investors must also ensure strict compliance with India’s Liberalised Remittance Scheme to avoid legal and financial complications.

Oversupply concerns have been noted, with ratings agencies forecasting potential price corrections of up to double digits amid rising deliveries, even after significant price growth. Sustained price increases over the last decade raise questions about cyclical peaks and exit liquidity may vary by location and segment, said Prasad.

For Indian investors, the appeal of Dubai lies less in novelty and more in numbers—predictable income, policy clarity, and portfolio balance in an increasingly global investment landscape. Expectations of liquidity should be aligned with market cycles and asset quality, Prasad said.