• Indian investors overtake Russians in the Dubai real estate market.
• High demand drives villa prices up 15–30% on average.
• Palm Jumeirah sees a staggering 74% increase in frond villa prices.

Based on the most recent data published by Betterhomes, Indian property investors overtook Russians as the biggest buyers of real estate in Dubai in 2023.

According to the figures, the buyers from Britain and Russia placed second and third, respectively. This represents a change from the 2022 scenario, in which the top three positions in the local real estate market were occupied by Russians, British, and Indians.

High net worth individuals and a surge in the number of expatriate workers in the emirate drove prices of both villas and flats in Dubai to new highs last year, fueled by extraordinary demand in 2022 and 2023.

Foreign investors have also been drawn to the real estate market by high capital and rental returns; last year, they invested billions of dirhams in the sector.

“Dubai’s real estate market continued to draw global attention, offering attractive returns to investors, security, a great lifestyle, tax efficiency, and a business-friendly environment for its expatriate population. Dubai experienced a substantial population increase, surpassing 100,000 new residents in 2023, emphasising the city’s sustained growth and enduring appeal,” said Richard Waind, CEO, Betterhomes.

In 2023, Dubai’s major residential areas witnessed a substantial rise in the average selling prices of villas, ranging from 15 to 30 percent. The scarcity of available properties contributed to significant hikes in sought-after expatriate communities like Arabian Ranches (a 25 percent increase), Dubai Hills Estate (a 29 percent increase), and Jumeirah Village Triangle (a 29 percent increase). Notable exceptions included Palm Jumeirah, where frond villa prices surged by an impressive 74 percent, and Jumeirah Golf Estates, experiencing a marginal 1 percent decrease in average sales prices.

Apartment prices also saw an upswing, with a widespread average sales price increase of 8 to 20 percent in key Dubai communities. Notably, Downtown Dubai (up 17 percent), Dubai Hills Estate (up 21 percent), and Jumeirah Golf Estates (up 21 percent) demonstrated robust performance.

The brokerage firm highlighted a notable surge in buyers from Egypt, Lebanon, Pakistan, and Turkey, underscoring Dubai’s sustained status as a global refuge for geopolitical and economic stability.

According to the annual study released by India Sotheby’s International Realty, Dubai emerged as the preferred destination for Indian investors in the overseas property market, with the United States following closely behind. Additionally, among the top 10 investors, Egyptians secured the fourth position, trailed by Lebanese, Italians, Pakistanis, Emiratis, the French, and Turks.

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