Indians lead foreign buyers in Dubai realty

MUMBAI: While the ongoing West Asia conflict has rattled the real estate market in UAE, Indians were the largest foreign group to invest in Dubai's residential property market last year. They bought homes worth an estimated Rs 85,000 crore to Rs 95,000 crore, according to Anarock Property Consultants. The Emirate recorded nearly $ 250 billion or roughly Rs 23 lakh crore worth of real estate transactions across all asset classes in 2025.

Indians' share of foreign residential transactions in Dubai was 23% last year, said Anarock, adding that in 2023, this share was just 12% amounting to total investments worth around Rs 37,000 crore that year.

Among the non-Arab property investors, UK nationals and Chinese were at number two and three spots respectively. "India plays a particularly significant role in this ecosystem. Indian nationals account for roughly 20-22% of foreign property purchases in Dubai, making them the largest investor group in the market. Several factors explain this trend, including geographical proximity, the stability provided by the UAE dirham's peg to the US dollar, and relatively attractive rental yields that typically range between 6% and 9%," said the report.

It added, "The current geopolitical tensions will undoubtedly introduce a degree of caution among investors. Transaction volumes may moderate in the near term as buyers assess the evolving risk environment. Yet Dubai's position as a global financial and lifestyle hub, combined with its diversified investor base and policy flexibility, continues to provide strong structural support to its real estate sector."

"Most Indians bought apartments and villas as investment," said Prashant Thakur, ED & Head, Research & Advisory, ANAROCK Group. "Many developers also offer rental management services to clients who buy properties here. Rental yields in Dubai are healthy 6% to 8% in Dubai compared to 2-3% in India," he said.