Young Indians Investing in Dubai's Luxury Real Estate Market
Young Indians are increasingly investing in Dubai's luxury real estate, drawn by high rental yields, rising property values, and the UAE's Golden Visa programme.
Dubai Real EstateIndian InvestorsLuxury HomesSobha RealtyGolden VisaReal Estate NewsJun 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) as well as 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 is the main reason young Indians are investing in Dubai's real estate?
Young Indians are investing in Dubai's real estate primarily because of high rental yields, rising property values, and the UAE's Golden Visa programme, which offers long-term residency for a minimum property investment.
What percentage of Sobha Realty’s luxury housing customers in Dubai have an Indian connection?
As many as 17% of Sobha Realty’s luxury housing customers in Dubai have an Indian connection.
What is Sobha Realty's target sales for 2025 in the UAE?
Sobha Realty is targeting sales of AED 30 billion in 2025, backed by the planned launch of up to 10 major masterplan developments in the UAE.
What are the most popular unit sizes among young buyers in Dubai?
Young buyers usually go for one- or two-bedroom luxury apartments, which offer good rental returns of 7–10% and hold their value well.
What is the minimum property investment required for the UAE's Golden Visa programme?
The minimum property investment required for the UAE's Golden Visa programme is AED 2 million (about Rs 4.7 crore).
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