Rich Indians are increasingly buying luxury residential properties priced over $10 million in Dubai, lured by its tax break, rising real estate value, and proximity to India, according to property developers and brokers in the emirate.
Indian high net-worth individuals (HNIs) were the third-biggest buyers in luxury residences in Dubai between January and June this year, after the British and the Europeans, according to a study by Dubai Sotheby’s International Realty. The city saw sales of 435 units in luxury residences in 2024, equivalent to what was sold in New York and London, Knight Frank said.
Dubai attracts stars and the wealthy from all over the globe. “We will have Indian buyers more and more in Dubai…wealthy Indian nationals love Dubai due to its proximity and no tax,” said George El Hachem, commercial director at Select Group, a Dubai-based developer. In Dubai, a buyer pays 4% of property value to the Dubai Land Department as fee. There is no long term capital gains tax in the emirate.
Six Senses Residences Dubai Marina
Select Group is developing Six Senses Residences Dubai Marina which it claims will be the tallest residential tower in the world. It has an entire hotel team to manage it and facilities spread over 61,000 square feet focusing on well-being including cryotherapy and hyperbaric oxygen chambers, a crystal sound healing room, and a spa area with a range of hydrotherapy amenities and a juice bar.
In Dubai, Emaar, Dubai Holdings, Nakheel are master developers and developers such as Select buy land from them and develop properties. “We see more investors now a days to rent or to flip and this is a good sign a believe in Dubai market,” Hachem said. In Select Group properties, buyers need to make 40% payment upfront and 60% on on possession. Majority developers ask for higher amount, he said.
Marc Walters, managing director at realty brokerage Allsopp & Allsopp added: “There is no tax on rent. Whatever you earn goes straight into your pocket.” Property consultants agree. Michael Hansen, partner and head of exclusive project sales for Knight Frank MENA, believes Indian HNI buying in luxury residences in Dubai will go up in a big way.
“India has a big population of HNIs. They are buying apartments, pent houses, beach residences,” Hansen said. According to a Knight Frank research, a million dollar will get over 800 sq ft of prime property in Dubai while in London the same amount will get about 360 sq ft.
Leigh Williamson, managing director at Dubai Sotheby’s International Realty, said a handful of factors have made Dubai popular with HNI investors. “First, Dubai is the safest country on the planet. Second, the government cares about all its citizens, and third, education and quality of life is very good,” Williamson said.
She believes proximity is another factor which has attracted HNI investors. “It is six hours from Europe and two hours from India,” she said.
The luxury housing market in Dubai has seen more demand from HNIs and less supply which has led to a sharp rise in prices, said Hansen of Knight Frank. Dubai luxury properties have seen over 50% price increase in the last five years.
Despite all the buying frenzy by Indian HNIs, a senior property executive said since the Indian market is large it’s difficult to reach out to HNIs directly. “So, we are reaching out through brokers. In countries such as the UK, it is easier to reach to HNIs as they are active on social media and they provide more information,” he said.
What Indians want
Developers and brokers said Indian HNIs are also asking certain specifications which are unique from other buyers. For instance, Indian buyers want back kitchens and large halls for gatherings while Europeans are okay with TV rooms, Williamson of Sotheby’s said.
Hachem at Select Group said many Indian buyers are also particular about vastu, an ancient Indian science of architecture in their residences. Walters of Allsopp & Allsopp said buyers in general are reducing number of bedrooms to include steam rooms, ice baths and so on. “You don’t get 8-to-9-bedroom villas. Five-to-six bedrooms are sweet spot,” Walters said.
(This correspondent was in Dubai at the invitation of Dubai Department of Economy & Tourism)