Dubai has now surpassed London as the top international property investment destination for wealthy Indian investors, according to a new survey by Sotheby’s International Realty.

The Luxury Residential Outlook Survey 2025, conducted by India Sotheby’s International Realty (ISIR), reveals that interest in international real estate among India's affluent class has doubled from 10-11% historically to 22% in 2025.

The study highlights a rising demand for second and holiday homes, with 54% of respondents favoring properties in hill or beachfront destinations. Additionally, convenience plays a crucial role, as 55% of investors prefer properties within a four-hour drive of their primary residence.

While only 20% of HNWIs are opting for international real estate, Dubai has overtaken London as the most preferred global market, followed by key US cities, signaling a shift in investment trends.

Dubai continues to attract Indian investors due to its:

World-class infrastructure and modern architecture

• Strategic location – just a 2 to 4-hour flight from major Indian cities
• Large Indian diaspora – with over 3.5 million Indian expatriates residing in the UAE
• Lucrative rental yields of 6–8% annually
• Stable currency – with the AED pegged to the USD
• 10-year residency visa – available for real estate investments of AED 2 million ($545,000) or more

These factors make Dubai an attractive, stable, and rewarding property investment destination for Indian HNWIs and ultra-HNWIs.

The survey also revealed a moderation in real estate investment sentiment, with 62% of respondents planning to invest in the next 12–24 months, compared to 71% in 2024. While there is a slight dip, real estate remains a preferred asset class for wealth building.

Key motivations for investing in luxury real estate include:

• Capital appreciation – cited by 55% of investors in 2025, up from 44% in 2024
• Expected returns – Nearly 50% anticipate gains between 12-18%, while 38% foresee returns below 12%
• Shift in demand – Once dominated by self-built bungalows, investors now favor high-rise luxury apartments and gated villas developed by renowned real estate brands

Dubai's low tax environment, high returns, safety, and status as an international transit hub continue to draw interest from Indian HNWIs and global investors. The city's diverse residential offerings, from high-end apartments to exclusive villas, provide multiple investment opportunities.

As Indian investors look beyond traditional markets, Dubai’s strong economic fundamentals, luxury lifestyle, and investor-friendly policies position it as a top global destination for real estate investment.