Top Reasons International Buyers Are Investing in Dubai’s Luxury Market

Dubai has emerged as one of the world’s leading destinations for international property investors, especially in the luxury residential segment. The emirate’s real estate market offers a unique blend of financial incentives, stability, and lifestyle benefits that few other cities can match. 

According to Savills, the emirate recorded a 23% year-on-year increase in 2024, with over 4,600 properties priced above AED 10 million transacted. The demand was especially strong in the villa segment, which saw a 33% rise in transactions, outpacing the 5% growth recorded for luxury apartments. 

Prime neighbourhoods in Dubai such as Palm Jumeirah, La Mer, and Jumeirah Bay Island continued to command the highest prices per square foot, reaffirming their appeal among high-net-worth buyers. 

Below, we explore the top reasons why international buyers are drawn to Dubai’s luxury real estate market.

Tax Advantages

One of the biggest draws for foreign buyers is Dubai’s tax-friendly environment. Unlike many global cities, Dubai imposes no annual property taxes, no capital gains tax on property sales, and no income tax on rental revenue. This means investors get to keep a significantly larger share of their profits, directly boosting their return on investment (ROI). 

In high-tax markets like New York or London, various taxes can affect real estate earnings, but Dubai’s tax-free policy allows rental income and resale gains to remain untaxed, making the overall investment far more lucrative. 

High Rental Yields

Beyond tax savings, Dubai offers exceptionally high rental yields in its luxury residential sector. According to Savills’ “Rent and yield analysis”, Dubai’s prime rental values rose by 23.5% in 2024, surpassing the market peak recorded in 2016. This surge is driven by a growing number of regional and global newcomers who often rent before deciding where to settle.

This growing demand reinforces the city’s reputation as a reliable and profitable destination for rental-focused investors.

Strategic Location

Dubai’s strategic location is another key factor attracting international investors. Situated at the crossroads of Europe, Asia, and Africa, Dubai serves as a global hub that is easily accessible from most locations around the world. 

The city’s world-class airports offer direct flights to hundreds of destinations, making it a convenient base for business and leisure travel. Such geographic advantage attracts multinational companies and talent to Dubai, which boosts demand for high-end housing from those who split time across regions.

Political and Economic Stability

Luxury real estate investors also value the political stability and economic resilience that the UAE is known for. Dubai consistently ranks as one of the safest cities in the world, with very low crime rates and a secure environment for residents and businesses. 

Economically, Dubai’s real estate market is closely linked to the UAE’s broader economic growth, particularly the expansion of non-oil sectors. According to the UAE Ministry of Economy, non-oil GDP reached AED 987 billion in the first nine months of 2024, up 4.5% year-on-year, and accounted for 74.6% of total real GDP. Sectors like trade (16.5%), manufacturing (15.1%), and financial services (12.1%) led this growth. Looking ahead, the World Bank projects overall GDP growth of 4.6% in 2025, with non-oil activities expected to grow by 4.9%.

As these industries expand, they create jobs, boost infrastructure, and fuel demand for housing, helping to stabilise and strengthen Dubai’s property market, even amid global fluctuations.

World-Class Infrastructure and Lifestyle Amenities

Dubai’s massive investment in infrastructure and lifestyle amenities underpins its luxury market appeal. The city boasts state-of-the-art transportation networks, from a modern highway system and metro system to one of the world’s busiest international airports, ensuring smooth connectivity for residents.

In addition, Dubai offers outstanding healthcare facilities and prestigious international schools, providing a high standard of daily life. Complementing this infrastructure is a luxurious lifestyle scene. Residents enjoy five-star amenities ranging from extravagant shopping malls and fine dining restaurants to beaches, marinas, and championship golf courses. Entertainment options are abundant, and the city hosts numerous cultural and sporting events year-round.

Ease of Property Ownership for Foreigners

Dubai has made it remarkably easy for foreigners to buy and own property, which significantly broadens the pool of potential buyers. In 2002, the government introduced the freehold property ownership law, allowing foreign ownership of real estate in designated areas. The law was a game-changer that opened the market to international investors.

The purchasing process itself is streamlined and transparent, with the Dubai Land Department (DLD) providing clear title registration and regulations that protect buyer interests. The government has also tied residency incentives to property investment. Investing a certain amount in real estate can qualify a buyer for long-term residence visas.

Investing in Dubai’s Future

At Meraas, we’re committed to supporting Dubai’s position as a leading destination for luxury real estate. Our communities are designed to offer exceptional quality, thoughtful design, and distinctive locations that align with what international buyers value most. From waterfront homes to vibrant lifestyle-focused neighbourhoods, we develop communities that respond to changing needs while contributing to the city’s long-term growth.

Contact the Meraas team to discover our new projects in Dubai and investment opportunities across its luxury residential market.