Based on the most recent data published by Betterhomes, Indian property investors overtook Russians as the top buyers of real estate in Dubai in 2023.
According to the statistics, the buyers from Britain and Russia placed second and third, respectively. This represents a change from the 2022 scenario, in which the top three positions in the local real estate market were occupied by Russians, British, and Indians.
High net worth individuals and an increase in the number of expatriate workers in the emirate drove prices of both villas and apartments in Dubai to record highs last year, fueled by unprecedented demand in 2022 and 2023.
Foreign investors have also been drawn to the real estate market by high capital and rental returns; last year, they invested billions of dirhams in the sector.
“Dubai’s real estate market continued to draw global attention, offering attractive returns to investors, security, a great lifestyle, tax efficiency, and a business-friendly environment for its expatriate population. Dubai experienced a substantial population increase, surpassing 100,000 new residents in 2023, emphasising the city’s sustained growth and enduring appeal,” said Richard Waind, CEO, Betterhomes.
In 2023, the average sales price of villas in Dubai’s prime communities increased by 15 to 30 percent on a broad scale. Popular expat communities like Arabian Ranches (up 25%), Dubai Hills Estate (up 29%), and Jumeirah Village Triangle (up 29%) saw significant increases due to a lack of available inventory. There were two notable exceptions: Jumeirah Golf Estates, where the average sales price slightly decreased by 1%, and Palm Jumeirah, where the average price of frond villas increased by 74%.
The cost of apartments increased as well, with average sales prices in desirable communities throughout Dubai generally rising by 8–20%. Particularly well-performing areas were Downtown Dubai (17%), Dubai Hills Estate (21%), and Jumeirah Golf Estates (21%).
The brokerage house reported a notable surge in buyers from Turkey, Egypt, Lebanon, and Pakistan, demonstrating Dubai’s ongoing status as a global hub for geopolitical and economic stability.
Egyptians ranked fourth among the other ten top investors, ahead of Lebanese, Italians, Pakistanis, Emiratis, French, and Turkish investors.
It’s interesting to note that Dubai, followed by the US, is the most popular destination for Indian investors looking to purchase overseas real estate, according to the annual study conducted by India Sotheby’s International Realty.