Why Indians are Buying Properties in Dubai

According to Dubai Land Department (DLD) statistics for H1 2025, Indian nationals accounted for 13% of all foreign real estate transactions in Dubai, maintaining their position as the second-largest group of overseas buyers after British investors. Indians are not just considering Dubai as a settlement option, but also putting it on top of their list for the better employment opportunities, and guess what, Dubai never disappoints them. Let’s have a look at a short list housing top 5 foreign investors in Dubai Real Estate:

Top 5 Foreign Investors in Dubai Real Estate

Note: This consistent demand from Indian investors has been rising steadily since 2020, supported by economic shifts in both countries and Dubai’s attractive property environment.

Understanding the push and pull factors behind Indian investment in Dubai real estate is essential to grasp the full picture of this growing trend. These forces reveal why Indian buyers are not only exiting domestic markets but are also strategically drawn to Dubai's property landscape.

Push Factors (India Side)

• High property prices in Indian metros like Mumbai and Delhi.
• Complex tax laws, high stamp duties, and capital gains tax.
• Currency depreciation risks and political instability.

Pull Factors (Dubai Side)

• Zero property tax and inheritance tax.
• High rental yields (6–9%) compared to Indian cities (2.5–3%).
• Freehold ownership zones with 100% foreign ownership.
• AED pegged to USD = stable investment climate.
• Investor visa incentives for property buyers.

Dubai vs Major Indian Cities: Real Estate Comparison

Note: This table clearly highlights Dubai’s advantages in rental yield, capital appreciation, tax efficiency, and foreign ownership compared to Mumbai and Delhi NCR

Indian buyers typically focus on both prime luxury zones and affordable high-ROI districts. Though Dubai is collectively known for ensuring all the focus areas are looked after, be it the luxury segments, investment & ROI zones, or the future growth aspects. But, if we segment the communities based on what they are notably famous for, then a short classification goes like:

• Luxury Focus: Palm Jumeirah, Downtown Dubai, Dubai Marina, Emaar Beachfront
• Investment & ROI Zones: Business Bay, JVC, Dubai Hills, Sobha Hartland, Arjan
• Future Growth Areas: Dubai South, MBR City, Town Square

Top Locations of Indian Investors in Dubai (2023-2025)

The heatmap’s structure:

• Y-axis: Location (e.g., Business Bay, Dubai Hills Estate, etc.)
• X-axis: Metrics (Avg Price/Sq.Ft, Capital Appreciation, Avg Rental Yield)
• Color: Intensity (darker = higher normalized value)

Note: Each metric is scaled between 0 and 1, with color intensity indicating the relative value for each location and metric. This visualization makes it easy to spot which areas perform best in terms of price, appreciation, or yield, regardless of the original units.

Dubai’s property market has delivered capital appreciation that consistently outperforms India’s leading metros, making it a magnet for both seasoned and first-time Indian investors.

• Dubai Hills Estate has witnessed a staggering 32% growth in property values from 2021 to 2025, driven by its family-friendly environment, proximity to top schools, and the appeal of integrated green spaces. This surge is emblematic of Dubai’s broader real estate rebound, especially in premium communities.

• Business Bay, one of Dubai’s most dynamic business and residential districts, recorded 27% capital appreciation over the past four years. The area’s transformation into a commercial and lifestyle hub, coupled with a boom in both sales and rental contracts, underscores its status as a high-return investment destination.

• Across Dubai, average property prices have surged by 75% since early 2021, with prime areas now commanding around AED 1,750 per square foot. Ultra-luxury neighborhoods like Palm Jumeirah and Dubai Hills have even seen price hikes exceeding 100% in just two years.

How Does This Compare to Indian Metros?

• In Mumbai, annual price growth has usually hovered around 5–6%, with luxury segments seeing the most resilience. However, the city now offers the least space per dollar among global cities, and overall housing sales have slowed due to high entry costs.

• Bengaluru leads Indian metros with a 79% price rise over five years, but annual appreciation rates are now moderating to around 13% year-on-year.

• Delhi NCR posted one of the strongest recent gains at 18% year-on-year, but this still trails the double-digit annual appreciation seen in Dubai’s most desirable districts.

Rental Yield Comparison: Dubai vs Indian Cities 

Dubai’s investor-friendly visa policies are a major draw for Indian buyers, making it easier to secure long-term residency and enjoy numerous benefits. By investing in property worth at least AED 750,000, Indian nationals can obtain a 2-year residency visa that is renewable as long as ownership is maintained. For those investing AED 2 million or more, the 10-year Golden Visa is available, offering even greater stability and flexibility.

Both visa categories allow holders to sponsor family members, own businesses, and live in the UAE without any minimum stay requirements which means there’s no obligation to reside in Dubai continuously to keep the visa valid. These policies, combined with tax advantages and high-quality living, make Dubai an especially attractive destination for Indian property investors.

Dubai’s property market now stands among the most advanced and digitized in the world, thanks to sweeping technological adoption. Investors and buyers can conduct entire transactions remotely, from virtual property tours and online contract signing to blockchain-backed land registration and digital payments. This digital ease not only simplifies cross-border investments but also enhances security, transparency, and speed for all parties involved. As a result, Dubai offers a seamless, paperless, and highly efficient real estate experience for global investors.

In Short:

• Blockchain-enabled title deeds
• Remote property viewing and purchasing tools
• Secure online transaction gateways
• Numerous Indian brokerage firms operating on-ground in Dubai

The Indian buyer group in Dubai’s real estate market has evolved to include a broad mix of profiles:

• 45% Pure Investors: These buyers primarily seek rental income and capital gains through resale, focusing on high-yield and capital appreciation opportunities.
• 35% End-Users: Mostly families relocating for career or migration reasons, these buyers look for homes to live in, prioritizing community amenities, schools, and quality of life.
• 20% High-Net-Worth Individuals (HNIs) & Holiday Home Buyers: This segment includes affluent buyers purchasing luxury second homes or holiday properties who are often attracted by Dubai’s lifestyle, tax benefits, and visa incentives.

With the Indian diaspora in the UAE exceeding 3.5 million and Dubai real estate showing strong returns, the momentum is unlikely to slow. Investor-friendly policies, tax benefits, and luxurious lifestyle offerings continue to lure Indians to Dubai’s vibrant property market. So now, are you ready to explore investment opportunities in Dubai, then follow and reach out to Dubai Housing for tailored insights on Dubai real estate.