Wealthy foreign investors are increasingly attracted to investing more in the United Arab Emirates, particularly in Dubai real estate market, as long-term residency programs such as Golden and retirement visas ensure that tenants remain even after losing their jobs and that their properties stay occupied for longer periods.

Foreign investors have been one of the key drivers of Dubai real estate market recovery, especially in the post-COVID-19 period, as they are drawn to the high returns from off-plan projects.

Key Numbers

• $5 billion – Total real estate transactions closed by the online real estate company last year.
• $400 million – Value of transactions in Dubai alone.
• AED 2 million+ – Properties at this price point offer significantly higher returns than those below AED 1 million.
• AED 4 million+ – The price range where foreign investors are actively investing.

The Most Common Question from Foreign Investors

“The most common question foreign real estate investors ask when buying property in Dubai is who their tenant will be. For example, in the Philippines and Vietnam, tenants are locals. So, they ask who their tenant will be in Dubai. We inform them that it will either be Indian, Pakistani, Arab, or European nationals. They want a strong connection with their tenants. Therefore, long-term residency programs such as the Golden Visa, Green Visa, Retirement Visa, etc., boost foreign investors’ confidence because they know their tenants will not leave if they lose their jobs,” said Ansari.

Ansari told Khaleej Times: “We inform them that these tenants have been living here for decades and that the Golden Visa allows them to reside in Dubai and the UAE for longer periods. These long-term residency programs are changing investors’ mindset and providing significant confidence to invest in Dubai.”

A Booming Real Estate Market

The online real estate company—which has more than 50,000 real estate professionals—closed transactions worth $5 billion last year, including around $400 million in Dubai.

Ansari added that investors in Southeast Asian countries are also “astonished” when they learn that there is no income tax in Dubai.

He further stated, “Citizens in the UAE are amazed when they find out that there is no income tax. Secondly, they are drawn to investment because the process of buying and selling real estate is highly transparent, and transferring money into and out of the UAE is extremely smooth through a transparent banking system.”

Why Are More Millionaires Coming?

Ansari stated that the higher returns on luxury real estate, property taxes in Europe, and comparatively lower prices than other major cities worldwide are increasingly attracting millionaire investors from Asian and European countries to Dubai.

He added that millionaire buyers are flocking to Dubai real estate market because the continuous rise in property prices— which have more than doubled in some communities— has also put many properties out of the budget range for mid-level investors.

Real estate prices have been rising over the past four years. The surge began as soon as Dubai—one of the first cities to reopen after the COVID-19 lockdown—welcomed foreigners for tourism and investment.

“These are interesting times for Dubai real estate market. Large investors are coming in search of high returns. There are always buyers for properties priced above $1 million. For example, Indian investors used to prefer the UK and Australia. After COVID-19, Indians are willingly purchasing homes worth $2 to $3 million because, when they compare them to prices in their own country, Dubai’s prices are very attractive,” said Kashif Ansari, co-founder and CEO of IQI Group.

He added, “Real estate prices in Dubai have more than doubled, which is why more high-net-worth individuals or millionaires are coming to Dubai instead of low- and middle-income investors, as prices are no longer within their reach.”

He pointed out that investors in Southeast Asia were “astonished” when they were informed about the investment opportunities and returns they could achieve in Dubai compared to other markets in Asia, due to the high property prices in other cities.

End-Users with a Budget Below AED 1 Million

The CEO added that millionaire investors are coming to Dubai to seize $1 million property deals because they have both the desire and the financial capacity to invest in the growing market. This is driven by the significantly higher returns that investors receive on properties priced at AED 2 million and above compared to homes priced below AED 1 million.

Ansari added, “Now, in the AED 1 million price category, most buyers are end-users looking to protect themselves from rising rents. Meanwhile, foreign investors are targeting properties priced above AED 4 million.”

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He pointed out that investors could achieve better returns by purchasing a single property worth AED 2 million rather than two properties worth AED 1 million each.

Ansari further stated, “In a world of increasing geopolitical risks, high-net-worth individuals are increasingly seeking safe and stable jurisdictions, and the UAE stands out in this regard. It offers a business-friendly environment, a globally strategic time zone for trade, world-class infrastructure, and a luxurious lifestyle.”