The Surge of Indian Investors in Dubai’s Luxury Real Estate Market

New Delhi, May 21 – A recent report from global property consultancy Knight Frank reveals an intriguing trend in the luxury real estate market of Dubai: super-rich Indians are now the second highest group, following Saudi High Net Worth Individuals (HNWI), in purchasing high-end properties. This trend reflects the increasing wealth of Indian citizens and their interest in international real estate markets.

The Rankings of Buyers

According to the report, Saudi HNWIs lead the pack with an impressive average budget of USD 45.7 million for property purchases. Indian investors follow closely, with an average budget of USD 44.6 million, while British citizens come in third with an average budget of USD 30 million. Interestingly, Asian HNWIs have the lowest average budget among respondents, albeit still a robust USD 23 million.

This financial escalation illustrates not only the affluence among Indian citizens but also their growing inclination to invest in global real estate markets, particularly in the appealing destination of Dubai.

Popular Locations for Investment

The Knight Frank report indicates that Dubai’s Marina area is a favorite among global real estate investors, with 28% of them choosing this upscale location. Other sought-after areas include Dubai Hills Estate and Emirates Hills, with 24% and 23% of buyers expressing interest, respectively.

Shehzad Jamal, a Partner in Strategy & Consultancy at MENA, noted that for the wealthiest HNWI respondents (those with a net worth exceeding USD 50 million), Dubai Marina leads their preferences, attracting 43% of their interest. Following closely, 30% express interest in Dubai Hills Estate, while 22% favor Emirates Hills. This robust interest highlights the desirability of these prime locations among the global elite.

Impressive Growth in Property Values

The Knight Frank 2025 edition of the Destination Dubai report offers further insights into the dynamic nature of the Dubai residential property market. The report indicates that the market experienced remarkable growth in 2024, with property values rising by 19.1%, reaching an average of AED 1,685 per square foot (psf). This surge pushes prices 13.3% above the previous peak observed in 2014.

Particularly striking is the growth in the villa segment, where sale prices surged by 19.6% in the 12-month period ending Q1 2024, reaching AED 2,088 per square foot. This represents a staggering 107.6% increase compared to Q1 2020, reinforcing the allure of standalone villas, beachfront homes, and branded residences that provide immediate access to Dubai’s enticing lifestyle.

The Appeal of Dubai’s Lifestyle

The sustained growth in Dubai’s luxury real estate market mirrors a broader trend of wealthy investors seeking not just homes, but also lifestyle experiences. The properties that seem to attract buyers the most are those that offer more than just physical space—they provide a gateway to the opulent lifestyle that Dubai is renowned for. With its high-end amenities, pristine beaches, and vibrant culture, Dubai has solidified its status as a prime destination for global real estate investment.

This evolving landscape of luxury property acquisition paints a picture of a thriving market, driven by increasing demand from wealthy buyers. Investors are not only looking for places to reside but are also driven by the appeal of living in one of the most dynamic cities in the world.

The trends reported by Knight Frank showcase a remarkable shift in the dynamics of global real estate investment, with Indian buyers playing an increasingly significant role. The enduring attractiveness of Dubai will likely continue to lure high-net-worth individuals from around the world, setting the stage for the market’s continued evolution.