Dubai Overtakes London as Top Choice for Super-Rich Indian Investors
In a significant shift in the international property investment landscape, Dubai has emerged as the preferred real estate destination for super-rich Indian investors, according to the latest survey by India Sotheby’s International Realty (ISIR). The survey, part of the Luxury Residential Outlook Survey 2025, revealed that 22% of High-Net-Worth Individuals (HNIs) and Ultra-HNIs are now keen on investing in international real estate, with Dubai surpassing London as the top choice for property investments abroad. This shift marks a profound change in the preferences of Indian investors, who are increasingly looking at Dubai’s burgeoning real estate market as a safe and lucrative option.
The report highlights that the interest in international real estate has surged in recent years, with the percentage of HNIs and UHNIs considering foreign property rising from just 10-11% historically to 22% in 2025. This increase reflects a growing desire among the wealthy to diversify their investment portfolios and secure high-return assets in global markets. Notably, the survey also pointed to a rising interest in second homes and holiday properties, with 54% of respondents showing interest in locations near hills or beaches, offering a mix of both leisure and investment potential.
Why Dubai? A Wealthy Oasis for Indian Investors
Dubai’s rise as the new hotspot for Indian property investors is no coincidence. The city offers a host of advantages that make it an attractive option for the ultra-wealthy. With its world-class infrastructure, modern architecture, and a close proximity to India, Dubai continues to draw Indian investors seeking both capital appreciation and stability. The flight duration from major Indian cities to Dubai ranges from just 2 to 4 hours, making it a convenient destination for frequent visits.
In addition to proximity, Dubai boasts a large Indian expatriate population, with over 3.5 million Indians residing in the city. This makes Dubai not only a familiar environment but also a place where Indian investors can tap into a thriving community. The city offers enticing rental yields of 6-8% annually, providing investors with an attractive passive income opportunity. Furthermore, the AED (Arab Emirate Dirham) is pegged to the US dollar, providing currency stability that reassures investors.
One of the key draws for Indian investors is the availability of a 10-year residency visa for those making real estate investments worth 2 million AED. This residency option adds another layer of appeal for wealthy individuals seeking a second home or a base in a global city, especially with Dubai’s reputation as a safe, tax-friendly location offering unmatched luxury living.
Luxury Real Estate as a Strong Investment Avenue
The survey also found that despite the shifting global economic landscape, real estate remains an enduringly popular investment avenue for HNIs and UHNIs. While the outlook for the sector has slightly moderated – with 62% planning investments in the next 12-24 months compared to 71% in 2024 – real estate continues to be seen as a safe haven for wealth preservation and growth. A notable 55% of survey respondents stated that their primary motivation for investing in luxury residential real estate was capital appreciation, a figure that has increased from 44% in 2024.
Notably, half of the investors expect annual returns between 12% and 18%, while only a small fraction anticipates returns exceeding 18%. This adjustment in expectations comes after years of strong growth, with the global real estate market stabilising. The growing interest in luxury apartments, high-rise towers, and gated community villas from renowned developers signifies a shift in the luxury market, with more buyers seeing these properties as robust financial assets rather than mere status symbols.
Sustainability and Long-Term Viability: Dubai’s Real Estate Future
The rising popularity of Dubai as an investment destination also ties into broader trends of sustainability and long-term viability. Dubai’s commitment to maintaining world-class infrastructure, green spaces, and efficient urban planning enhances the city’s allure as a sustainable investment hub. Real estate developments in Dubai are often aligned with eco-friendly practices, including energy-efficient buildings and sustainable construction methods. As Indian investors increasingly prioritise sustainability in their portfolios, Dubai offers the perfect blend of profitability and eco-conscious living.
Moreover, Dubai’s status as an international business and tourism hub ensures that its real estate market remains resilient, even amid global economic shifts. The city’s well-planned urban expansion, coupled with its appeal as a luxury lifestyle destination, makes it an ideal long-term investment. For Indian investors, Dubai presents an opportunity to secure a foothold in a thriving, future-ready metropolis that offers both lifestyle and investment benefits.
