Dubai’s property market is experiencing a notable shift as investors from Germany, France, and the UK become increasingly active. Traditionally dominated by regional buyers, the market has now caught the attention of European, Asian, African, and American investors, according to Elie Naaman, Co-Founder & CEO of Ellington Properties.
This trend is largely driven by global economic factors, including inflation and financial uncertainty in other regions, which have made Dubai a more attractive option for property investment. Ainsley Duncombe, Managing Partner at Off-Market Listing, noted that British, American, Spanish, and Indian investors are currently among the most active buyers in the market.
Why Dubai is a Top Choice for Investors
Dubai’s investor-friendly policies continue to enhance its appeal. Naaman highlights key incentives such as long-term residency visas, the Golden Visa program, and full foreign ownership of businesses. Combined with a tax-free environment, world-class infrastructure, and high rental yields, these factors create a compelling case for international buyers.
Duncombe adds that tougher financial conditions in investors’ home countries are also pushing them toward Dubai’s stable and transparent property market. Investors are increasingly seeking politically stable locations with clear regulations, making Dubai an ideal choice.
Recent data from Sobha Realty further supports this trend, with top investors in their portfolio coming from India, China, Iran, and the UK. The city’s strategic positioning and strong governance have made it a safe haven for investors amid global uncertainties.
A Global Investment Hub
Beyond European investors, the Dubai market continues to attract buyers from South Asia, Russia, and the CIS region. Meanwhile, Chinese investors are showing renewed interest, encouraged by Dubai’s strong business ties with Asia.
Looking ahead, experts predict continued growth but also acknowledge challenges such as balancing supply and demand and catering to the diverse preferences of international investors. Naaman stresses the importance of adapting strategies to accommodate different cultural and financial expectations.
Despite rising global interest rates, Dubai remains competitive due to its high rental yields and tax advantages. The city is also focusing on sustainability and innovation, with new developments incorporating smart technology and eco-friendly designs.
Growing Interest from Africa and North America
Looking toward the future, the Dubai real estate market is expected to see increased investment from African nations such as Nigeria, Kenya, and South Africa, as well as growing interest from American buyers. Duncombe notes that economic challenges, rising living costs, and tax burdens in investors’ home countries are prompting them to seek new opportunities abroad.
Additionally, Ras Al Khaimah (RAK) is emerging as an attractive alternative, especially with the highly anticipated opening of the Wynn Al Marjan resort in 2027. Duncombe highlights that over 70% of current transactions involve off-plan properties, with RAK drawing significant interest due to its future gaming and hospitality developments.
Real estate experts believe that the launch of the Wynn Al Marjan resort will drive property prices in RAK up by more than 50%, reinforcing its status as a key investment destination alongside Dubai.
