Why the world’s wealthiest are interested in Dubai’s real estate

Dubai’s luxury real estate market has evolved into one of the most sought-after investment destinations for ultra-high-net-worth individuals (UHNWIs), who see the city as a hub for premium properties and a secure place to preserve and grow their wealth. Strategic government initiatives, long-term residency programmes, and an unmatched lifestyle have propelled Dubai to the forefront of the global luxury property market, drawing in investors from every corner of the world.
H.E.Sultan Butti bin Mejren, Director-General of the Dubai Land Department (DLD), attributes this success to the city's investor-friendly policies. “Dubai remains at the forefront for global investors, positioning Dubai as the world's premier real estate destination and a byword for innovation, trust, and happiness”.
One of the most significant drivers of Dubai’s booming property sector has been the Golden Visa programme, which offers long-term residency to investors purchasing property worth at least AED 2 million. The programme has reshaped investor behaviour, with many now favouring long-term ownership over short-term speculation.
According to a report1 by fäm Properties, Dubai’s real estate market has had a record-breaking year. The year 2024 was an all-time peak of a high of 180,900 transactions touching a whopping AED 522.1 billion. Firas Al Msaddi, CEO of fäm Properties, added that 2024 was a remarkable year for Dubai’s real estate market with a growth in transaction volumes, despite global economic uncertainties.
He added sale values in fact, broke historical records with strong rental demands and high luxury resilience.
Peter May, Chief Operating Officer at Silkhaus, believes Dubai’s appeal lies in its economic and political stability, coupled with its business-friendly environment. “Dubai stands out as a stable, business-friendly hub with strong leadership, security, and a tax-efficient environment, making it a haven for investors seeking long-term growth,” he says. “Unlike many other global cities that are saturated or struggling with over-regulation, Dubai continues to offer a fresh landscape where high-net-worth individuals can build their portfolios without excessive restrictions.”
Apart from this Dubai's government has also launched ambitious urban development projects to enhance the city's appeal. The Real Estate Strategy 2033 aims to increase property transaction values to AED 1 trillion ($272 billion) within a decade. This plan focuses on creating upscale communities through public-private partnerships, ensuring a steady supply of luxury properties to meet growing demand.

Dubai’s reputation has evolved from being a hub for GCC and Russian investors to attracting a more global clientele. Alois Kugendran, CEO of Amaya & Co Real Estate, has seen this first-hand, in a conversation with TOI.com, he said “Dubai’s reputation as a safe, stable destination with world-class infrastructure and long-term residency incentives is driving this trend,” he says. “We’re seeing more European and North American buyers than ever before. Many of them are relocating, drawn not just by investment opportunities but by the city’s lifestyle, tax benefits, and business potential.”
A report2 by Colliers International notes that Dubai's real estate sector has witnessed a surge in investment from family offices seeking diversification and long-term returns.
A Henley Private Wealth Migration Report3 2023, added close to 4,500 millionaires relocated to the UAE in the same year. Not only that, according to a report by DIFC, Dubai ranked 1st in the MEASA region and among the world’s top 22 cities in terms of wealthiest population centers in 2023 with over 68,500 HNWIs.
His Excellency Essa Kazim, Governor, of DIFC said in the report - “Dubai and DIFC have rapidly positioned themselves as the premier destination for family businesses worldwide. The exponential growth and expertise witnessed within the Centre underscores its pivotal role in shaping the landscape of family wealth.”
DIFC is also making strides to push an increase in technology and innovation in the real estate sector. The financial hub has launched a new technology solution that enables third parties to access data on its real estate landscape. The report added that the initiative will contribute to the Dubai Real Estate Sector Strategy 2033 which aims to increase transactions, attract international investors, and position Dubai as one of the foremost property investment destinations.
According to the Savills Prime Residential World Cities Index4, Dubai prime residential capital values saw a 6.4% rise in 2025. This has cemented the emirate’s status as a top global investment hub. The report added that there is a growing population and influx of HNIs and family offices in the UAE fuelling a high demand for prime residential properties.
It added that Dubai is evolving as a luxury segment that in fact, is redefining the market’s understanding of ‘prime’, with its multiple ultra-luxury projects. Indian investors continue to be among the top three nationalities purchasing luxury properties in Dubai, drawn by zero capital gains tax, ease of inheritance planning, and high ROI potential.
For Indian investors, Dubai provides significantly more value per square foot than major cities like Mumbai and Delhi. “Many of our Indian clients tell us that buying in Dubai makes more financial sense than in their home market,” Kugendran said. “They get better infrastructure, higher ROI, and access to a market that continues to appreciate.”
Branded residences have become a defining feature of Dubai’s luxury property boom, with partnerships between developers and global brands drawing in wealthy investors looking for exclusivity. “Branded residences—offering a blend of luxury, exclusivity, and hotel-style management—are in high demand,” said Kugendran. “They provide not just prestige, but also hassle-free returns, which is something investors value.”
At the same time, short-term rental investments have become a key part of many investors' strategies. May has observed that UHNWIs are no longer just looking for properties to own—they are looking for ways to make their investments work for them. “Short-term rentals offer greater liquidity, allowing investors to sell properties without the constraints of long-term tenancy agreements,” he explains. “This flexibility makes them a strategic asset, enabling investors to adapt quickly to market conditions while maximising returns.”
Kugendran believes that Dubai’s rental market is one of the strongest globally. “There’s a huge demand for luxury short-term rentals, whether it’s from high-net-worth travellers, executives, or digital nomads looking for extended stays,” he says. “The yields in Dubai’s prime locations consistently outperform traditional rental markets in cities like London and New York.”
With the city’s real estate market seeing record-breaking transactions, prime locations such as Palm Jumeirah, Dubai Hills Estate, and Downtown Dubai have become some of the most valuable addresses in the world.
H.E. Sultan Butti bin Mejren has highlighted Dubai's real estate sector's resilience and growth, he said, ”The strong performance in the real estate sector indicates a trend that we expect to be sustained over the next year and beyond.”5
Developers are responding to the growing demand with more exclusive, low-density developments that prioritise privacy, space, and sustainability. Kugendran has noticed a strong interest in sustainability-driven properties. “Luxury buyers today want more than just a big house—they want eco-friendly designs, energy-efficient systems, and developments that offer wellness-focused living,” he says. “Sustainability is no longer a niche trend; it’s becoming a requirement for high-end buyers.”
A Knight Frank Sustainability in Real Estate Report added luxury real estate in Dubai is no longer just about opulence; it’s about sustainability, wellness, and environmental responsibility, which are becoming key decision factors for high-net-worth investors.6
For investors, the appeal of Dubai’s real estate market is also no longer just about capital appreciation but also about strong rental yields. May sees this as a major shift in how UHNWIs are approaching their investments. “Both capital appreciation and rental income are moving in the same direction. Property values continue to rise, while rental demand—particularly for short-term rentals—is outpacing supply, driving higher yields and increased ROI potential,” he says. “What makes Dubai unique is that investors don’t have to choose between growth and income—they can have both.”
Dubai’s luxury real estate market is no longer just a haven for second-home buyers—it has become a centre for long-term wealth preservation, business expansion, and high-yield investments. As a city that continually reinvents itself, it offers something few other real estate hubs can: stability, exclusivity, and a future-ready investment landscape. For UHNWIs, the question is no longer whether to invest in Dubai—it is how much of their portfolio they should allocate to it.
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This article is contributed by Sindhu Kashyap
It is a part of a featured content series on Business in Dubai.
Disclaimer: This article has been produced by Times Internet’s Spotlight team.