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Dubai’s real estate market itself remains strong. Residential sales touched a record AED 547 billion across 203,000 transactions in 2025
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Average prices rose 12 per cent, while rents stayed firm, supported by steady tenant demand
Indians and Britons emerged as the largest buyers of property in Dubai in 2025, according to the latest industry data, highlighting a growing shift towards overseas real estate investments. For many Indian buyers, a sharp fall in the rupee has been the key trigger.
Over the past year, the Indian rupee weakened by more than 7 per cent against the dollar-pegged UAE dirham, sliding from around Rs 23.3 to nearly Rs 25 per dirham. This steady decline has raised concerns about wealth erosion, especially for families with expenses linked to the dollar, such as overseas education or travel. As a result, Dubai’s property market is increasingly seen as a safe hedge against currency risk and a source of stable long-term income.
Low rental returns in India are further pushing investors abroad. In prime residential areas of cities like Gurgaon, rental yields usually range between 2 and 3 per cent
In contrast, residential properties in Dubai often offer yields of 8 to 10 per cent. For example, a property worth Rs 3 crore in India may earn Rs 6–9 lakh annually, while a similar investment in Dubai could generate Rs 24–30 lakh a year.
Industry experts say professionals, entrepreneurs and small business owners are leading this trend. Some are also using non-resident relatives or overseas family offices to structure property purchases, as foreign remittances are now closely monitored under India’s FEMA rules and stricter tax norms.
The demand numbers support this shift. Property consultancy Knight Frank reported that Indians accounted for 10 per cent of all property sales in Dubai in 2025, up from 6 per cent a year earlier. Data from UAE-based agency Betterhomes showed that Indians made up 14 per cent of its transactions last year.
