With homes starting at around Rs 1 crore in the affordable segment and premium properties priced from Rs 4.5 crore and above, the city appeals to a wide range of buyers — from young professionals seeking high rental yields to high-net-worth individuals chasing exclusivity and capital appreciation.
According to Morgan Owen, Managing Director – Middle East & North Africa at ANAROCK Group, a combination of Golden Visa reforms, booming infrastructure, strong GDP growth, and rental yields of 6–8% has kept Dubai’s property market thriving.
Speaking to Kshitij Anand of ETMarkets, Own said that even as global markets face uncertainty, Indian investors are finding the emirate’s mix of tax-free income, ease of ownership, and long-term stability hard to resist. Edited Excerpts –
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Q) When investing in Dubai, what is the Budget one must keep in mind for Indian investors? How is affordable and luxury housing different?
A) Affordable housing in Dubai for usually starts at AED 500,000–700,000 (or INR 1–1.5 crore), with smaller sizes and basic amenities. Luxury housing, on the other hand, starts at AED 2 million (INR 4.5 crore) and upward, with premium locations, views, and high-end features.While luxury offers discerning buyers’ exclusivity, higher capital appreciation, and superior amenities, affordable options offers good rental returns and easy entry.
Q) Apart from Dubai, are there other countries that are seeing renewed real estate boom and where Indian investors/HNIs are putting money?
A) Indian HNIs are also investing in London, New York, and Singapore, mainly driven by capital appreciation, the currency hedging rationale, and lifestyle aspirations.
Manhattan’s luxury market is quite attractive, while London offers historical ties, steady returns and decent annual price growth in prime central areas.
Singapore’s connectivity and business-friendly atmosphere draw in many HNI Indian investors. Hong Kong is also popular again.
Q) What key factors are driving the sharp rise in Dubai’s property prices over the past year?
A) Dubai’s Golden Visa reforms are steadily attracting global investors, including from India. Also, it has seen strong GDP growth and massive infrastructure investments.
Moreover, lower mortgage rates make Dubai very attractive to Indian investors who are also clearly drawn by the rental yields and the booming luxury segment.
Q) How have population growth, visa reforms, and the influx of remote workers contributed to renewed housing demand in Dubai?
A) These factors do play major roles. The Golden Visa reforms now allow people to live in the UAE for 10 years if they invest AED 2 million, and the Virtual Work Visa allows remote workers to work in the UAE if they make more than USD 5,000 a month.
This is attracting talent from all over the world and also HNIs, entrepreneurs, and remote working professionals, all of which is driving up demand for over 60,000 new homes each year. Price appreciation has been 20+% for apartments and 30+% for villas year over year.
Finally, the absence of income tax and a business-friendly environment make Dubai incredibly attractive not professionals only from India but also from Europe and Russia.
Q) How sustainable is Dubai’s current price rally, and are we seeing signs of overheating or structural consolidation?
A) The market fundamentals show continued strength. With strong population growth, rental yields of 6–8% that offset prices, strict rules, and more than 36,600 new housing units needed each year to meet demand, any correction – if it happens – will be minimal.
The Golden Visa and First-Time Buyer programs and a strong push towards sustainable real estate also support long-term stability.
Q) Are more people buying or renting apartments in Dubai?
A) As of 2025, Dubai shows a strong predilection towards buying over renting. Prices for properties rose over 3% a month and secondary sales rose 22% Y-o-Y, while rental growth slowed to 8.5% with a huge influx of new supply hitting the market.
Tenants are starting to see the financial benefits of buying homes instead of renting long-term. While prices go up anywhere between 5–10% each year, rents don’t show much upward movement. The buy rationale is strong, and Indians are responding to it
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
