The Rising Trend of Young Indian Property Buyers in the UAE

An Emerging Market

In recent years, the allure of the United Arab Emirates (UAE), specifically Dubai, has captivated the attention of young Indians, who are increasingly investing in real estate. As reported, 17% of Sobha Realty’s luxury housing customers in Dubai have an Indian connection, with a notable rise in younger buyers participating in this market. This trend is not limited to Indian citizens; even expatriates based in the UK and EU are making purchases, often opting for second or third homes in Dubai. These investments serve personal purposes or capitalize on the rapid capital appreciation and high rental yields the market offers.

Growth Among Indian Buyers

Ravi Menon, chairman of Sobha Group, highlighted a 5% growth in Indian customers within just one year, emphasizing the Indian diaspora as one of the largest customer bases in the region. The burgeoning interest from younger buyers signals a demographic shift in the traditional landscape of property investment—a clear indication that this group is not only financially savvy but also keen on securing their future.

Sobha Realty’s Position in the Market

Sobha Realty stands out as one of Dubai’s three largest real estate players, alongside Emaar and Damac. In 2024, the firm sold approximately 8,894 units, with 96% comprising apartments; the remaining were villas. Looking ahead, Sobha Realty has set an ambitious target of AED 30 billion in sales for 2025, supported by the launch of significant masterplan developments in the UAE and strategic expansions into the U.S. and Australia.

Investment Preferences

Younger buyers typically gravitate towards one- or two-bedroom luxury apartments. These units not only promise favorable rental returns ranging from 7% to 10% but also maintain their value well. With property prices in the UAE surging by about 16–17% annually, investing in this market appears promising for many.

In the realm of apartments, the size bracket of 500–1,000 sq ft accounted for 77% of all sales, while larger villas up to 5,000 sq ft made up about 30% of villa transactions. Smaller units are particularly appealing due to their liquidity, making them easier to rent out and resell.

The UAE’s Economic Landscape

The UAE, being the only West Asian country featured in the Henley & Partners Opportunity Index 2025, is ranked seventh with a score of 67% for opportunity. Factors contributing to this ranking include robust employment prospects, favorable tax policies, and world-class infrastructure. Furthermore, Dubai’s Golden Visa program offers a renewable 10-year residency for a minimum property investment of AED 2 million (approximately Rs 4.7 crore). This has made the UAE an attractive choice for Indian investors looking to secure long-term residency and capital appreciation.

Key Developments in Sobha Realty

In 2025, Sobha Realty unveiled several significant masterplans, including Sobha Solis, Sobha Central, and Downtown UAQ. Notably, they delivered Creek Vistas Grande eight months ahead of schedule, reinforcing their commitment to timely project completion. Such efficiency not only enhances their market reputation but also encourages potential buyers to consider future investments with confidence.

Expansion into the International Market

In 2024, Sobha Realty announced plans to penetrate the lucrative U.S. real estate sector, particularly focusing on residential properties. Their first master plan in Texas, slated for 2025, is already in development, alongside setups in Australia. These international expansions continue to reflect Sobha’s commitment to growth while catering to a global audience.

Strategic Brand Partnerships

Sobha Realty has taken significant steps to connect with global audiences through partnerships with prominent brands such as the International Indian Film Academy Awards (IIFA), the International Cricket Council (ICC), and Arsenal Football Club. These collaborations boost their visibility, particularly among the Indian diaspora in the UK, Dubai, and beyond, helping to reinforce the company’s status in the market.

Demand from Multinational Companies

The trend of multinational corporations establishing offices in Dubai further fuels the demand for luxurious yet compact housing. Industries like IT, banking, and financial services are relocating top talent to Dubai, leading to an increased interest in smaller luxury units, both for purchase and rent. Though the 25–35 age group is becoming more prominent among buyers, the 40–50 age bracket remains the largest, typically preferring larger properties. This diverse demographic reflects the complexity of the Dubai real estate market and highlights the various opportunities available for investors. Additionally, young crypto millionaires and tech entrepreneurs find Dubai to be a prime location for their business ventures and investments, further diversifying the buyer landscape.

In a market characterized by growth and opportunity, young Indian buyers are poised to reshape the real estate landscape in Dubai, driven by a combination of economic factors, favorable policies, and shifting consumer demographics.