Dubai has overtaken London as the top choice for international property investment among super-rich Indian property investors, a survey by Sotheby’s has shown
Dubai Surpasses London as the Top Choice for Indian HNIs in International Real Estate Investments
A recent Luxury Residential Outlook Survey 2025 by India Sotheby’s International Realty (ISIR) has revealed that 22% of High-Net-Worth Individuals (HNIs) and ultra-HNIs are now keen on investing in international real estate. Notably, Dubai has emerged as the most preferred destination for property investment, surpassing London.
The survey findings indicate a remarkable increase in interest in overseas real estate, rising from 10-11% historically to 22% in 2025. This shift highlights a growing inclination among affluent investors to explore property ownership beyond domestic markets.
Surging Demand for Second and Vacation Homes
A significant trend identified in the survey is the rising appeal of second homes and vacation properties, with 54% of respondents expressing interest in acquiring real estate in hill stations or beach destinations. Additionally, convenience remains a key factor, as 55% of respondents prefer properties within a four-hour drive from their primary residence.
While only 20% of investors opt for international markets, Dubai has overtaken London as the top choice, with several U.S. cities also gaining traction among Indian investors.
Why Indian HNIs Are Choosing Dubai for Real Estate Investment
Dubai continues to be a preferred destination for Indian investors due to its world-class infrastructure, cutting-edge architecture, and strategic location close to India. The short flight duration of 2–4 hours from major Indian cities makes it an easily accessible international hub. Furthermore, Dubai is home to a large Indian expatriate community, with over 3.5 million Indian residents, making it a culturally familiar and welcoming environment for new investors.
The city offers attractive rental yields of 6–8% annually, strong capital appreciation, and a stable currency (AED) pegged to the USD. Another major draw is the 10-year residency visa, which can be obtained by investing at least 2 million AED in real estate, providing long-term security and benefits for Indian buyers.
Investment Outlook Among HNIs and UHNIs
Despite a slight dip in overall real estate investment intentions, the sector remains a preferred asset class. The survey found that 62% of respondents plan to invest in real estate within the next 12–24 months, compared to 71% in 2024.
The primary motivation behind these investments is capital appreciation, with 55% of HNIs and UHNIs citing it as their main reason for buying luxury properties in 2025, an increase from 44% in 2024.
Nearly half of the respondents expect returns ranging between 12% and 18%, while 38% anticipate returns below 12%. Meanwhile, fewer than 15% expect returns exceeding 18%, reflecting more realistic expectations following years of significant property value gains.
Luxury Real Estate: A Status Symbol & Smart Investment
The Indian luxury property market has evolved significantly. Once dominated by individually built bungalows, the segment now includes high-rise luxury apartments and gated community villas developed by renowned real estate companies. These properties offer premium amenities and assured quality, making them highly attractive to the country’s affluent class.
“Luxury real estate is no longer just a status symbol; it has become a powerful investment avenue,” said Ashwin Chadha, CEO of India Sotheby’s International Realty.
Dubai’s Appeal: Low Taxes, High Returns & Global Connectivity
Dubai’s investor-friendly tax policies, high rental returns, and reputation as a global business and travel hub have fueled growing interest from international buyers, including Indian HNIs. The city’s real estate market offers a wide range of options, from high-end apartments to luxurious villas, catering to different investment preferences.
For Indian investors, Dubai presents an ideal opportunity to generate passive income through high rental yields, benefit from long-term capital appreciation, and own property in a thriving international metropolis.
