A recent survey conducted by India Sotheby’s International Realty (ISIR) has revealed that Dubai has emerged as the top choice for international real estate investments, surpassing London. The Luxury Residential Outlook Survey 2025 highlights a significant rise in interest among High-Net-Worth Individuals (HNIs) and ultra-HNIs, with 22% of respondents now looking to invest abroad, a sharp increase from the 10-11% range in previous years.
The survey shows that second and holiday homes are particularly attractive to the super-rich, with 54% of respondents considering properties in hill or beach destinations. Convenience remains a priority, with 55% preferring properties within a four-hour drive. While 20% are interested in international locations, Dubai has emerged as the preferred destination, with many investors also eyeing US cities.
Why Dubai Continues to Attract Indian Investors
Dubai's appeal among Indian investors is driven by its world-class infrastructure, modern architecture, and proximity to India, with flight durations of just 2 to 4 hours from major Indian cities. The city is home to a large Indian diaspora, with over 3.5 million Indian expatriates calling it home.
Dubai’s real estate market offers lucrative rental yields of 6-8% annually, along with capital appreciation potential and the stability of the AED, which is pegged to the US dollar. Additionally, investors can secure a 10-year residency visa with a real estate investment of 2 million AED, further boosting its attractiveness.
While the outlook for real estate investments has moderated slightly, with 62% of UHNIs and HNIs planning to invest in the next 12-24 months (down from 71% in 2024), confidence in real estate as a wealth-building asset remains strong. Notably, 55% of investors are focused on capital appreciation, up from 44% in 2024, highlighting the ongoing appeal of luxury residential properties.
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