A recent survey by the Luxury Residential Outlook Survey 2025 has revealed that 22% of High-Net-Worth Individuals (HNWIs) and ultra-HNWIs are keen on investing in international real estate. Notably, Dubai has surpassed London as the most preferred global destination for these investors.
This marks a significant increase from historical trends, where interest in overseas real estate stood at approximately 10–11%. The sharp rise to 22% in 2025 underscores a growing enthusiasm for global property investments among affluent individuals.
Surge in Demand for Second Homes
The survey highlights a rising preference for second and holiday homes, with 54% of respondents considering properties in beach or hill destinations. Convenience is a crucial factor, as 55% of potential buyers favor locations within a four-hour drive from their primary residence.
While only 20% of respondents are looking at international properties, Dubai has emerged as the leading choice, overtaking London. Additionally, various U.S. cities are gaining traction among global investors.
Why Dubai is the Top Choice for Indian Investors
Dubai’s appeal among Indian investors is driven by its modern infrastructure, iconic architecture, and close proximity to India, with flight durations ranging between 2 to 4 hours from major Indian cities. Furthermore, with over 3.5 million Indian expatriates residing in Dubai, the city offers a sense of familiarity and community.
The city provides lucrative investment opportunities, including rental yields of 6–8% annually, potential capital appreciation, and the stability of the AED, which is pegged to the USD. Additionally, investors who purchase real estate worth AED 2 million or more qualify for a 10-year residency visa, further enhancing Dubai’s attractiveness as a long-term investment hub.
Investment Trends Among HNWIs and UHNIs
Although real estate investment sentiment among HNWIs and UHNIs has slightly moderated, 62% still plan to invest within the next 12–24 months, down from 71% in 2024. Despite this marginal decline, confidence in real estate as a stable wealth-building asset remains strong.
Capital appreciation continues to be the primary motivator for investment, with 55% of respondents citing it as their main reason for acquiring luxury real estate in 2025—up from 44% in 2024.
Investment return expectations have also adjusted to a more realistic outlook. Nearly 50% of respondents anticipate returns between 12% and 18%, while 38% expect gains below 12%. Only a small segment—less than 15%—foresees returns exceeding 18%, reflecting a more cautious perspective after three years of significant growth.
Evolving Preferences in Luxury Real Estate
Previously dominated by self-built bungalows, the luxury real estate landscape has evolved to include high-rise apartments and gated community villas developed by renowned builders. These properties offer premium amenities and assured quality, catering to the sophisticated preferences of affluent buyers.
Dubai’s appeal is further strengthened by its low taxation, high return potential, security, and status as a global transit hub. The city continues to witness rising interest from international investors, including Indian HNWIs, who are drawn to its high rental yields, promising capital appreciation, and the prestige of owning property in a globally recognized metropolis.
Published On: Jan 29, 2025
Source: https://www.hindustantimes.com/real-estate/heres-what-s-driving-super-rich-indians-to-invest-in-dubais-real-estate-market-101738132001608.html
