Why Indian Investors Are Choosing Dubai Over London for Real Estate

  • 2 hours ago

Dubai has long been a magnet for global wealth but a significant shift is underway. 22% of affluent Indian investors now favour Dubai over London for property investments, up from 10–11% in previous years. The appeal is clear. Higher yields, long-term security, and a seamless investment process.

Proximity With Global Appeal

For Indian investors, Dubai offers the ideal blend of accessibility and international stature. With direct flights from Mumbai, Delhi, and Bangalore taking just 2–4 hours, investors can effortlessly manage assets while benefiting from a world-class business and lifestyle ecosystem.

An Established Indian Presence

Dubai is home to 3.5 million Indians, making it a natural extension of the Indian business landscape. From elite networking opportunities to top-tier Indian schools and cultural institutions, the city ensures a sense of familiarity alongside global sophistication.

Yields That Outperform Major Indian Cities

Dubai’s 6–8% annual rental yields significantly exceed those in Mumbai (2–3%) and Delhi (3–4%). With sustained demand for ultra-luxury residences, waterfront developments, and branded properties, these returns remain highly competitive.

Financial Security in a Dollar Pegged Economy

With the AED pegged to the USD, Dubai offers a level of currency stability that emerging markets, including India, cannot match. Investors avoid rupee depreciation risks while securing assets in a globally connected financial hub.

Residency Through Investment

Dubai’s Golden Visa programme continues to attract investors seeking long-term security. A  AED 2 million (approx. ₹4.5 crore) investment grants a 10-year residency, an incentive that outperforms the more complex and tax-heavy alternatives in the UK or Singapore.

A Tax Efficient Investment Landscape

Dubai’s zero property tax and zero capital gains tax present a compelling advantage over London’s stamp duties and higher capital gains obligations. In contrast to India’s 18-30% capital gains tax, Dubai allows investors to retain the full value of their returns.

A Strategic Shift in Investment Trends

Though 62% of Indian HNWIs plan to invest in 2025, down slightly from 71% in 2024, real estate remains a dominant wealth-building strategy. Ultra-luxury developments, high-end penthouses, and branded residences continue to attract investors focused on long-term value.

London vs Dubai The Changing Landscape

London has historically been a preferred investment destination for Indian buyers but shifting economic dynamics tell a different story. Higher property taxes, complex stamp duties, and Brexit-related instability have made Dubai’s transparent and investor-friendly real estate market a more compelling alternative.

Dubai is a Strategic Investment for Indian Buyers

For Indian investors seeking a high-performing, tax-efficient, and strategically positioned real estate market, Dubai offers a compelling opportunity. From superior yields to long-term residency benefits, the city continues to attract those looking for secure and lucrative investments.

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