The Dubai real estate market has been attracting global investor interest in recent times with growing investments from several buyer demographics. However, the market is now experiencing a significant shift in investors with European buyers – particularly from Germany, France and the UK emerging as increasingly active players in Dubai’s property sector.
“While traditionally dominated by regional buyers, the market has experienced increased interest from European, Asian, African, and US investors,” said Elie Naaman, Co-Founder & CEO of Ellington Properties in an exclusive interview with Arabian Business.
The influx of European investors comes amid broader changes in the global economic landscape, where high inflation and economic uncertainties in other regions have enhanced Dubai’s appeal.
“We are seeing British, American, Spanish nationals and also Indian nationals that are very active in investing [in Dubai] right now, said Ainsley Duncombe, Managing Partner, Off-Market Listing.
Stability and investor-friendly environment
The city’s stability and investor-friendly environment have positioned it as an attractive alternative for international property buyers.
Naaman attributes the rising interest to some key beneficial factors, “Dubai’s investor-friendly policies, such as long-term residency visas, the Golden Visa program, and the 100 per cent foreign ownership of businesses, are major attractions.”
He explained that the combination of robust infrastructure, world-class amenities, and high rental yields, all within a tax-free environment, creates a compelling proposition for European investors.
Duncombe also attributed the rising interest to “more challenging fiscal environments in their home countries” which he believes is “fuelling this renewed interest.”
Earlier this week, Sobha Realty announced the nationalities of top investors across the company’s project portfolio, topping the list was India, followed by China, Iran, and the UK.
The city’s proactive governance and strategic position have become particularly valuable amid current global uncertainties. “The current geopolitical climate has amplified the demand for real estate as a secure investment,” said Naaman.
“Investors are seeking markets with political stability and transparent regulations, both of which Dubai offers,” he added.
Beyond European buyers, the market is seeing increased activity from various international sources. South Asian countries, particularly India, along with Russia and CIS regions, have maintained strong investor presence.
Chinese investors making a comeback?
Chinese investors are also making a comeback, driven by Dubai’s ties with Asian markets.
Looking ahead, the market faces both opportunities and challenges. Naaman identified maintaining the balance between supply and demand as a key consideration, along with the need to adapt to diverse investor preferences.
“As investor profiles diversify, there’s a need to adapt marketing strategies and develop offerings that cater to varied cultural and financial preferences,” he said.
Despite potential challenges from global rising interest rates, Dubai’s competitive advantages – including strong rental yields and tax-free status – continue to attract international investment.
The market’s future appears focused on sustainability and innovation, with developments increasingly incorporating smart technology and sustainable features to meet evolving investor expectations.
“Dubai’s real estate market continues to evolve, and its success lies in adaptability and innovation. As we look ahead, embracing sustainability, smart technology, and enhancing investor experience will be critical,” Naaman said.
Looking ahead, the property market anticipates growing interest from African countries alongside heightened interest from US investors.
“We anticipate growing interest from Africa, particularly from countries like Nigeria, Kenya, and South Africa, driven by increasing wealth and a desire for diversification. Additionally, with improving global travel conditions, investors from the US are showing heightened interest in Dubai’s real estate market,” he explained.
Furthermore, Eastern European and regional investor interest is expected to remain strong.
“As investors have felt the impact of economic downturn and also increased tax liabilities in their home countries combined with a higher cost of living and also reduced safety and security at home they are looking for not only other investment opportunities but also safe havens for their family and business,” Duncombe explained.
He hinted at the possibility of increased interest from American and Canadian investors.
The anticipated surge in global interest is expected to benefit not only Dubai’s real estate market but also Ras Al Khaimah’s property market, attracting a wave of international investors.
“Over 70 per cent of the transactions being down today are for Offplan properties and RAK is still proving to be very popular as we get closer to 2027 when the Wynn Casino is scheduled to open and change the game for hospitality and gaming in the region,” Duncombe concluded.
In September, Arabian Business reported the real estate boom in Ras Al Khaimah, driven by several factors including the upcoming Wynn Al Marjan Casino resort.
“The announcement of Wynn Al Marjan Resort has significantly boosted real estate demand in RAK,” said Maxim Novikov head of the RAK branch at Metropolitan Premium Properties.
He emphasised that “the time to act is now” as the opening of the casino resort is expected to drive up prices over 50 per cent.
The upcoming Wynn Al Marjan resort is set to open in 2027 and is anticipated to have a profound impact on the real estate market and local economy.
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