WHO IS BUYING PROPERTY IN DUBAI?

Investors worldwide continue to acquire assets in Dubai’s property market, with foreign nationals now owning over 40% of all real estate in the emirate. Dubai’s global appeal and status as the top-performing property market in the world set it apart, with no major city coming close in terms of foreign ownership:

Dubai: 40% owned by foreign nationals
Cote d’Azure: 11%
Singapore: 10%
London: 8%

Adding to this, both the percentage and value of foreign-owned assets in Dubai are growing rapidly. Between 2020 and 2022, foreign-owned residential real estate wealth in Dubai increased by almost 25%, adding approximately USD 23 billion in extra value.

Unlike in the past, Dubai’s property market is now experiencing broad, sustained growth rather than being driven purely by speculative investment. Now in its third growth cycle, the market is attracting a wider range of investors and buyers, reinforcing its long-term stability.

Many see Dubai as an ideal location to establish a second home, retire, or leverage its booming tourism market, where rental rates and yields frequently outperform those in other global cities. The introduction of flexible residency visas has further strengthened interest from foreign investors looking for a long-term investment strategy in Dubai’s market.

Beyond strong ROI, three primary factors have drawn foreign investors to Dubai in recent years:

Since global lockdowns began back in 2020, high-net-worth individuals (HNWIs) from around the world have increasingly sought to buy and live in Dubai.

Initially dubbed the “Race-for-Space”, the huge influx of new buyers seeking to benefit from Dubai’s post-COVID-19 recovery and its early reopening, led to a sharp rise in the value of ultra-prime property – particularly in Palm Jumeirah. Investors saw almost 50% annual capital appreciation , driven by a supply-demand imbalance – more foreign multimillionaires wanted to buy property in Dubai than the number of available completed units.

Designed to attract foreign property buyers, the Golden Visa has been a major success. According to the General Directorate of Residency and Foreigners Affairs (GDRFA), 158,000 Golden Visas were issued in 2023 alone – nearly 160,000 foreign nationals securing long-term residency in Dubai.

While not all recipients purchase property immediately, real estate investment remains a primary pathway to residency. The program’s growing appeal is evident in its rapid expansion, with 79,617 visas issued in 2022 and 47,150 in 2021 – showing a clear upward trend.

While many investors face stagnating domestic markets and economic uncertainty, Dubai’s economy continues to demonstrate strong upward momentum. Recent data shows GDP grew by 3.1% in the first three quarters of 2024, reaching AED 339.4 billion. Notably, real estate activity grew by 3.6%, contributing 8% to Dubai’s total GDP – reinforcing its role as a key economic driver.

The British have been among the most consistent foreign buyers in Dubai for over three decades, maintaining strong investment ties with the emirate.

Given the UK’s long-standing economic relationship with the UAE, coupled with a strong cultural affinity for property investment, it is unsurprising that British investors are among the largest foreign property owners in Dubai. The appeal lies in Dubai’s tax efficiency, higher rental yields, and investment-friendly regulations, which stand in stark contrast to the increasingly restrictive policies in the UK.

The British property market – London, in particular – remains a stable long-term investment, yet it struggles to match Dubai’s ROI. As a result, a growing number of British investors are shifting their focus to Dubai – a trend accelerated by rising second-home taxes in the UK.

British investors gravitate toward prime locations, including Dubai Marina, Downtown Dubai, and Palm Jumeirah, as well as emerging high-growth areas such as Dubai Hills Estate and Jumeirah Golf Estates. Many view Dubai as the ideal place for a second home, retirement, or a buy-to-let investment, where rental yields consistently outperform those in the UK.

It is estimated that Indian investors own more real estate in Dubai than any other foreign nationality outside the UAE itself, solidifying their position as one of the most dominant buyer groups.

Much of this sustained interest stems from deep business ties between India and Dubai, as well as the emirate’s reputation as a safe, high-growth investment location. However, a new macroeconomic factor has further accelerated this trend – currency depreciation.

Over the past 12 months, the Indian rupee has depreciated by nearly 4%, prompting many Indian investors to diversify their wealth into overseas assets. Additionally, the Reserve Bank of India has sold an average of USD 3.3 billion in foreign exchange reserves in the first two months of 2025, reinforcing concerns over long-term currency stability. As a result, Dubai property has become an increasingly attractive hedge against currency risk.

Indian buyers are particularly drawn to mid-range and high-end properties in Jumeirah Village Circle (JVC), Business Bay, and Dubai Hills Estate, where they seek a balance between affordability and long-term capital growth. Meanwhile, Dubai’s large Indian expatriate community drives strong demand for investment properties that generate consistent rental income.

At the ultra-high-net-worth level, wealthy Indian investors favour ultra-prime locations such as Emirates Hills and Palm Jumeirah, where they benefit from privacy, luxury, and world-class amenities. The Golden Visa residency program has further boosted demand for these premium properties, making Dubai an even more compelling destination for Indian buyers.

Russian investors have a long history of purchasing real estate in Dubai, but demand has surged in recent years – particularly due to geopolitical tensions and economic sanctions that have restricted financial movement in other markets. As a result, Russian investment in Dubai property skyrocketed tenfold in 2023, reaching an estimated USD 6.3 billion worth.

Dubai’s neutral stance, financial flexibility, and ease of business have made it a safe-haven market for Russian investors looking to protect and grow their wealth.

High-net-worth Russian buyers typically focus on luxury waterfront properties, favouring Palm Jumeirah, Jumeirah Bay Island, and Emirates Hills for their privacy and exclusivity.

Additionally, the growing acceptance and adoption of cryptocurrency transactions in Dubai has further strengthened its appeal among Russian investors, offering a secure and discreet way to move capital into real estate.

Pakistani investors have a long-standing presence in Dubai’s real estate market, drawn by its stability, higher rental yields, and ease of access compared to investment options back home. Dubai is also home to a large Pakistani expatriate community, which further fuels demand for mid-range properties in areas such as International City, Discovery Gardens, and Dubai Silicon Oasis.

For wealthier Pakistani investors, luxury properties in Downtown Dubai and Dubai Marina remain highly attractive due to their strong rental demand and capital appreciation potential.

Beyond high-end investments, many Pakistani buyers view Dubai as a safe and strategic location for asset diversification, particularly in times of economic uncertainty in their home country.

Another key segment of Pakistani investors is focused on affordable off-plan developments, where flexible payment plans and lower entry costs provide an accessible route into the market. Additionally, residency programs such as the five-year property investor visa have strengthened Dubai’s appeal as a long-term investment destination.

Chinese investment in Dubai real estate continues to grow steadily, driven by economic challenges in China’s domestic property market and the appeal of Dubai’s stable, high-return investment landscape.

In March 2025, Chinese officials announced plans to stimulate economic growth with an ambitious 5% GBP target. However, this strategy has resulted in increased government spending, pushing the budget deficit to nearly 4% of GDP – China’s highest in decades. Against this backdrop, Dubai’s real estate market stands out as a safe and lucrative investment option, offering strong yields and a well-regulated financial environment.

Dubai’s strategic role in China’s Belt and Road Initiative (BRI) has reinforced investment flows, with more Chinese companies establishing regional headquarters in the UAE.

Chinese investors are particularly interested in off-plan developments in emerging areas such as Dubai South and Meydan, as well as luxury properties in prime locations like Downtown Dubai.

Many Saudi families view Dubai as a second-home destination, drawn by its luxury shopping, leisure attractions, and world-class healthcare. While these lifestyle benefits are key drivers, Dubai’s strong and stable property market is viewed as an added advantage.

Historically, Saudi Arabian investors have played a significant role in Dubai’s real estate sector, owing to close economic ties and shared cultural and religious connections. Saudi buyers typically gravitate towards spacious luxury villas in high-end communities such as Arabian Ranches, Emirates Hills, and Palm Jumeirah.

Local Emirati investors remain dominant in Dubai’s real estate market, actively purchasing off-plan projects, commercial properties, and long-term rental assets. Many prefer luxury residences and mixed-use developments, which offer both investment potential and lifestyle benefits.

Dubai’s ongoing infrastructure expansion and tourism growth continue to fuel domestic property demand, reinforcing its appeal among UAE nationals. Given their historical property ownership trends, it is unsurprising that Emiratis own more real estate in Dubai than any other nationality.

Kuwaiti investors have been increasingly active in Dubai’s property market, attracted by its economic stability and strong rental yields. Recent UAE-Kuwaiti agreements aimed at eliminating double taxation concerns have spurred further investment interest.

Kuwaiti buyers focus on prime locations such as Downtown Dubai, Jumeirah Beach Residences, and City Walk, where high-end apartments and serviced residences provide stable, long-term returns. Dubai’s expanding retail and business hubs also attract Kuwaiti entrepreneurs looking to leverage the city’s multicultural population boom for business expansion.

Qatar’s domestic property market has faced oversupply challenges, particularly in the aftermath of the 2022 World Cup. In April 2024, the real estate price index fell by 6.73% compared to the same period the previous year, following a phase of moderate growth in earlier years.

As a result, Qatari investment in Dubai real estate has been steadily increasing, with a focus on both luxury residential and commercial properties. Dubai’s position as a regional financial hub has made it a compelling destination for Qatari investors seeking wealth diversification and stable returns, particularly those involved in wealth management and owning real estate portfolios. Additionally, the easing of regional political tensions has further encouraged renewed buyer interest from Qatar.

Since 2023, Germany’s property market has faced consistent declines, with the German Statistical Office reporting a 14% depreciation in house prices. As a result, many investors are seeking alternative markets with stronger capital appreciation and rental yields.

With expectations of a slow domestic recovery, German investors are increasingly turning to Dubai, drawn by higher rental returns and the absence of property tax. The emirate’s stable economy and investor-friendly regulations provide a more secure and profitable environment for real estate investment.

German buyers primarily target modern, high-rise apartments in Dubai Marina, Palm Jumeirah, and Downtown Dubai, leveraging strong rental demand and higher yields compared to cities like Berlin and Munich. Many view Dubai as an ideal location for second homes or rental investments, benefiting from the city’s robust tourism and expatriate-driven rental market.

Dutch investors hold over EUR 735 million worth of Dubai real estate assets, with increasing interest in sustainable developments and smart city projects. This aligns with the Netherlands’ national emphasis on green technology and eco-friendly urban planning.

Many Dutch buyers are gravitating toward early-maturity submarkets such as Dubai Hills Estate, Bluewaters Island, and Business Bay, seeking both strong capital appreciation and rental yield potential. These areas offer modern infrastructure, and smart city innovations, making them particularly attractive to environmentally conscious investors.

After a turbulent period, French property values are forecast to rise by just 2% in 2025 – a modest figure compared to the strong capital appreciation and rental yields available in Dubai. This lower domestic return outlook is driving an increasing number of French investors to diversify their portfolios into Dubai’s real estate market.

Beyond returns, Dubai’s tax-free environment, high-end developments, and luxury lifestyle make it a particularly attractive choice for French HNWIs and business executives. Many are drawn to exclusive waterfront communities such as Palm Jumeirah, Jumeirah Bay Island, and Downtown Dubai, which offer world-class amenities, prime real estate appreciation, and a seamless buying process.

Additionally, Dubai’s thriving financial sector and strong economic ties with France have reinforced its appeal as an investment hub. With business-friendly policies and long-term residency options like the Golden Visa, more French buyers are viewing Dubai as an ideal location for both second homes and long-term investment strategies.

After nearly three decades of sustained growth, Dubai has firmly established itself as one of the world’s most sought-after real estate markets. Its combination of high rental yields, tax-free property ownership, and investor-friendly regulations continues to attract buyers from every continent. Whether motivated by financial incentives, economic diversification, or luxury lifestyle appeal, investors from the UK, India, Russia, China, Pakistan, Saudi Arabia, and across Europe are making Dubai their preferred property investment destination.

Looking ahead, Dubai’s real estate market is set to evolve further, with new regulations enhancing transparency, a surge in sustainable developments, and a shift towards digital transactions. These advancements are expected to drive even greater global demand, opening the door for investors from emerging markets to capitalise on Dubai’s dynamic property sector.