DUBAI DREAMS: THE PROPERTY INVESTORS PARADISE

Dubai real estate market is experiencing its unprecedented boom in 2025, outshining world markets with its stable, tax-free climate and investor friendly policies. The real estate industry is not only expanding; it’s booming as indicated by AED 115 billion worth of property sales in Q1 alone, marking a record-breaking feat of 29% year-on-year growth compared to Q1 2024. The topmost reason for huge interest from foreign investors is that Dubai is viewed not only as one of the safe havens for investments, but also the promise of high returns and long-term value. With record-breaking sales in Q1 and strong momentum in Q2, Dubai is not just defying global economic pressures — it is thriving.

DUBAI REAL ESTATE UPWARD TRAJECTORY

Data from DXBinteract shows Dubai property sales in July have bow soared over the last five years - from AED4.5 billion (2,300 transactions) in 2020 to AED11.2 billion (4,400) in 2021, AED21.3 billion (7,200) in 2022, AED37.8 billion (11,200) in 2023 and AED50.2 billion (16,300) in 2024. A market update by fäm Properties reveals that Apartment sales showed a 28.1% YoY growth to 16,272 deals valued at AED32.2 billion, while the biggest sector leap saw commercial property transactions rise by 57.8% to 606 worth AED1.5 billion. Villa sales of AED19.3 billion were up by 6.4% in volume to 2,988 compared with the same month last year, while plot sales rose by 22.3% to 438 transactions worth AED12 billion. The average price per sq. ft was up by 9.5% to AED 1,649 compared with July last year.

Firas Al Msaddi, CEO of fäm Properties, said: “The level of activity once gain underlines the strength and maturity of Dubai’s real estate sector. Dubai has shown it can sustain growth through different cycles, supported by clear regulation, strong investor sentiment, and a steady pipeline of new opportunities.”

INDIANS BET BIG ON DUBAI REALTY

According to the latest private wealth migration data, Dubai has emerged as the world’s top destination for millionaire migrants, with the UAE expecting to welcome a net inflow of 9,800 HNWIs in 2025—significantly outpacing the US and other global hot spots. Indian investors have been pivotal to this surge, driven by Dubai’s unrivalled infrastructure, zero-tax regime, and the long-term security provided by residency programs such as the Golden Visa.

According to Rabiah Shaikh, Chief Business Officer & Principal Partner - Global Markets, Square Yards, the latest figures reaffirm the city’s appeal, with double-digit growth in both residential transaction volume and value. “Competitive advantages such as streamlined property acquisition, favourable visa and mortgage frameworks, tax incentives, and attractive rental yields have reinforced the emirate’s position as a global property investment hub. Looking ahead, we see a clear roadmap for sustained growth, supported by strategic initiatives like the Dubai Real Estate Sector Strategy 2033.

The ambition to double the sector’s contribution to GDP, enhance homeownership, and push market value past AED 1 trillion underscores confidence in the long-term potential of Dubai’s real estate market, with the residential segment at its core.” Notably, Indian nationals now account for over 22% of all foreign real estate transactions in Dubai, investing AED 35 billion in 2024 alone. This boom is no longer limited to the metros—investors from across India’s heartland are actively contributing to Dubai’s dynamic real estate landscape

Ali Rao, CEO of Titan Real Estate, a premier ultra-luxury real estate consultancy in the UAE stated, “Year 2025 has been an extraordinary year for cross-border wealth migration, and Dubai remains the destination of choice for Indian HNWIs seeking security, growth, and a premium lifestyle. With Dubai’s real estate yields consistently outperforming Indian metros and the promise of a upto 10-year Golden Visa for qualifying investments, we anticipate continued upward momentum in Indian HNWI inflows in Dubai real estate.”

FREEHOLD PROPERTY OWNERSHIP: A REALITY

A big boost for Indian HNIs has come in the recent announcement of The Dubai Land Department (DLD), opening freehold property ownership to all nationalities. The new regulation will cover key areas of Sheikh Zayed Road-from the Trade Centre Roundabout to the Dubai Water Canal-and the Al Jaddaf neighborhood. Freehold ownership will allow Indian buyers a full control over their property, including the right to make modifications, transfer ownership to heirs, and choose to sell, lease, or reside in it. The added benefits, include eligibility for a long-term residential visa in Dubai and the potential for high returns on investment. This initiative aligns with Dubai’s ambitious Real Estate Strategy 2033, which seeks to increase real estate transactions by 70 per cent, raising the total value of Dubai’s real estate market to $272 billion (AED 1 trillion) and expanding the value of Dubai’s real estate portfolios to $5.44 billion (AED 20 billion). “Dubai’s decision to let property owners in the Sheikh Zayed Road and Al Jaddaf areas convert their ownership status to freehold is a pivotal step for the city’s real estate sector. This bold new initiative is a win for all stakeholders - investors, developers, and Dubai’s real estate market as a whole. It will not only attract a larger pool of investors, but also enhance the long-term resilience and growth of the market. Both Al Jaddaf and Sheikh Zayed Road are now positioned as prime real estate hotspots. Granting freehold ownership to all nationalities in prestigious areas like these will boost market sentiment and investor confidence,” says Firas Al Msaddi.

WHERE TO BUY & RENT IN DUBAI

Indians have believed in buying a property and buying a home in the Dubai is definitely a smart move, especially if you’re planning to stay long-term or for investment purposes. But, for many Indian residents, renting offers flexibility without the long-term commitment of ownership and the other factor is cost with property prices on continuous upwards trend. In both the scenarios, Dubai offers plenty of options to buy or rent. As per Property Finder, the UAE’s leading real estate platform, Dubai’s rental market has seen rapid price growth in recent years, but forecasts suggest a possible 10 to 20% correction in 2025 due to increased new supply and increased competition among landlords.

THE POPULAR AREAS FOR RENTALS IN DUBAI ARE:

Palm Jumeirah - The iconic palm tree-shaped island is one of the most prestigious communities in Dubai. It boasts several high-end apartments, private beaches, marinas, restaurants, and leisure and entertainment hubs. Rental options here include studios to six-bedroom apartments. It commands one of the highest average annual rents, which is AED170,000.

Downtown Dubai - Considered the city’s beating heart, it is located along Sheikh ZayedRoad, between the business districts of the Dubai International Financial Centre (DIFC) andBusiness Bay. It serves as a link between the city’s historical areas, including Bur Dubai and Deira, and the new areas of Dubai Marina and Dubai Hills Estate. Apartment rental options here range from studio to four-bedroom units. The average annual rent is AED 139,999 Dubai Marina - This well-known community is highly sought-after for its safety and friendly vibe. Its amenities include parks, playgrounds, and entertainment and leisure hubs, such as the Dubai Marina Mall and Marina Walk. Apartments for rent in Dubai Marina range from studio to four-bedroom units. The penthouses have five or more bedrooms. The average annual rent here is AED 106,000

Jumeirah Village Circle (JVC) – This is a thriving residential area known for its affordable housing options that include apartments, villas, and townhouses. It is also well-connected to major highways,including Al Khail Road and Sheikh Mohammed Bin Zayed Road, making it one of the mostaccessible areas in the city. The apartments for rent in JVC range from one to three bedrooms. The average rent for apartments here is AED 78,000 per year.

Dubai South – It is a community built around AlMaktoum International Airport, gaining popularity, thanks to its mix of budget-friendly and mid-market properties. Its exceptional connectivity makes it an excellent choice for peoplewho want to rent an apartment. Rental apartments here range from studios to three-bedroom units. The average rent is AED60,000 per year.

BEST AREAS FOR INDIAN EXPATS TO BUY

Transitioning from renting to buying in Dubai, Propert Finder lists some of the best areas worth checking out based on factors such as rental returns, affordability, commute times, and freehold access. Worth noting is that, while, some areas rank high for end users, they may not be a good investment choice and vice versa.

Jumeirah Lake Towers (JLT), Business Bay, and Jumeirah Village Circle (JVC) are all mid-market Dubai communities with solid rental returns ranging from 7.3% to 7.9%. They offer full freehold ownership and benefit from strong infrastructure, diverse housing stock, and proximity to major business hubs.

Downtown Dubai has seen impressive price growth (over 30% in recent periods) but offers lower yields, making it more appealing to long-term investors than income focused buyers.

Arabian Ranches, in middle tier range offers villa-style living in a suburban setting ideal for families looking to settle long-term.

The Greens, appeals to buyers who value community atmosphere and mature infrastructure.

Al Barsha is also a good choice as it provides one of Dubai’s most affordable urban entry points. And only Al Barsha South is open to freehold buyers.

Dubai Marina and Jumeirah Beach Residence (JBR) remain popular with residents, but from an investment perspective, both are weighed down by modest yields and high service charges. While they offer excellent waterfront living and short commutes, these areas may not deliver strong returns for first-time buyers focused on long-term growth.

Palm Jumeirah commands prestige and global recognition with ultra-luxury positioning. It’s also one of the few areas to show a decline in prices over the past year (-16.6%) with relatively modest rental yields (5.3%). But while the lifestyle offering is unmatched, it’s better suited to end users than those focused on capital growth or income.

THE DUBAI MAGNET

There is no doubt, Dubai has always been a popular destination for global citizens, whether for work, business opportunities, or second home. For Indians, living in Dubai means belonging to a familiar yet diverse community, given the large community of Indians living in Dubai. When it comes to living or investing in Dubai property, for Indians, especially Dubai can be a good location, driven by its tax-free environment for real estate and capital gains, strong economic opportunities. However, some of the factor to consider are the high cost of living, market fluctuations, and understanding Indian Reserve Bank (RBI) regulations regarding overseas investments to avoid mistakes.