High-net-worth individuals from India are expected to funnel up to $20 billion annually into the UAE, with a strong focus on Dubai’s thriving real estate sector. The momentum is largely driven by revised Reserve Bank of India (RBI) rules that have eased cross-border capital movement.
This surge aligns with Dubai’s property market achieving record-breaking growth in 2024, recording 226,000 transactions worth AED 761 billion ($207 billion).
Market experts point to a significant funding gap, rising interest in private equity, and the rapid adoption of tokenised real estate as pivotal factors shaping the next investment wave.
Liberalised Investment Framework Spurs Indian Interest
According to Amit Goenka, Chairman and Managing Director of Nisus Finance, the RBI’s updated Overseas Portfolio Investment (OPI) and Overseas Direct Investment (ODI) frameworks under the Foreign Exchange Management Act (FEMA) have given Indian businesses and individuals greater flexibility and clarity in placing capital abroad.
Under the Automatic Route, Indian companies can now invest overseas without prior RBI approval as long as their investments remain within 400% of their net worth.
A recent Ernst & Young report revealed that India’s outbound investments jumped by 67.7% in FY 2024-25, reaching $41.6 billion, compared to $24.8 billion in the previous fiscal year.
Individual investors have also been increasingly active through the Liberalised Remittance Scheme (LRS), which allows annual remittances of up to $250,000. Outbound remittances hit a record $29 billion from April 2023 to February 2024 — a 21.7% year-on-year rise.
Goenka remarked, “Indian investors are already the largest foreign investor group in the UAE’s economy, especially in real estate, businesses, and industries. The recent policy liberalisation will likely accelerate this trend.”
Dubai Real Estate: A Record-Breaking Year
The UAE’s real estate market, now estimated at nearly $680 billion in assets, continues to display remarkable growth. In 2024 alone, Dubai recorded a 36% year-on-year increase in transaction volume and a 20% rise in value, translating to 226,000 deals worth AED 761 billion ($207 billion).
Investment volumes climbed 38% to AED 526 billion ($143 billion) across 217,000 deals, while 110,000 new investors entered the market — up 55% year-on-year.
However, Goenka highlighted that sustaining this growth demands over $100 billion in annual funding, while traditional financing currently accounts for just 30% of this need.
He noted, “The remaining 70% funding gap represents a significant opportunity for new capital sources.”
Affordable Housing and Private Credit in Focus
Nisus Finance, through its NiFCO fund, is focusing on affordable housing in fast-growing communities such as Jumeirah Village Circle (JVC) and Al Furjan, where nearly 95% of new development activity is concentrated.
While demand remains robust, institutional financing in this segment is still limited. Goenka added that non-banking financial institutions and private credit investors are beginning to enter the market, yet the cumulative capital deployed remains far below annual requirements.
Digital Transformation: Tokenisation Takes Centre Stage
The integration of technology is redefining the UAE’s property market. The Dubai Land Department has launched a real estate tokenisation pilot targeting AED 60 billion ($16.3 billion) in tokenised property transactions by 2033.
According to Boston Consulting Group, global tokenised assets could be worth $16 trillion by 2030, with real estate expected to be one of the largest categories.
Nisus Finance is leveraging PropTech, AI, and blockchain to optimise asset evaluations and improve fund management processes, aligning its strategies with this digital shift.
Beyond Real Estate: Industrial and Demographic Growth
The UAE’s investment appeal extends beyond the property sector. Ongoing geopolitical realignments are shifting global manufacturing and logistics hubs toward the Gulf, with the UAE, Saudi Arabia, and Oman emerging as strategic centres for warehousing and light industries.
Authorities across Dubai, Abu Dhabi, and the Northern Emirates continue to enhance the business environment with incentives such as single-window clearances and favourable financing options.
Population expansion is also a key growth driver. The UAE’s Vision 2040 aims to increase the country’s population to 13.6 million residents from the current 10 million, further boosting demand for housing, education, and infrastructure.
In 2024 alone, over 4,300 Indian ultra-wealthy families relocated to the UAE, bringing with them approximately $5 billion in investable assets, which has further stimulated demand for premium housing and related services.
Institutional Capital and REIT Market Outlook
The UAE is witnessing a shift from family-owned capital to professionally managed global funds. Leading institutional players, including Blackstone and Brookfield, along with sovereign wealth funds and pension funds, are increasing their stakes in the country’s development story.
Goenka observed, “This shift towards global capital is a sign of market maturity rather than a slowdown.”
He also forecast that the UAE’s real estate investment trust (REIT) market, currently valued at $7–8 billion, could mirror the expansion seen in Singapore and the US within the next five to seven years.
Nisus Finance aims to channel $1 billion in investments through its own platform and strategic partnerships, with Goenka concluding, “The opportunity is here, the capital is ready — it’s now about connecting the dots.”
Published On: 24 Sep 2025
Source: https://www.arabianbusiness.com/industries/real-estate/indian-investors-uae-assets-dubai-real-estate-demand
