Indian Investors Poised to Inject Up to $20 Billion Annually into UAE Assets, Fueling Dubai Real Estate Demand

Dubai — Indian high-net-worth individuals are increasingly targeting the UAE as a preferred investment destination, with projections that they could channel up to USD 20 billion per year into assets across the Emirates, particularly real estate.

Surge in Demand

Analysts say that demand from Indian investors is rising sharply, driven by favorable returns, strong regulatory reforms in India, and compelling incentives in the UAE real estate market. Sectors such as tokenised real estate, industrial assets, and commercial property are emerging as key focus areas in addition to residential housing.

Regulatory Reforms Enable Capital Flows

Recent changes in India’s outbound investment rules, especially under the Indian Foreign Exchange Management Act (FEMA), have expanded the permissible limit for Overseas Direct Investment (ODI) and Overseas Portfolio Investment (OPI). This liberalization makes it easier for Indian investors to deploy capital abroad.
These reforms are expected to support a structural shift in capital flows toward global assets — with the UAE in a prime position to benefit.

Real Estate as the Flagship

Dubai, in particular, is emerging as the top real estate destination for Indian investors. The city’s property market offers a combination of stable legal frameworks, tax efficiencies, ease of ownership, and strong appreciation potential.
In 2024 and beyond, experts anticipate increased interest in high-yield segments, off-plan projects, and luxury properties.

Broader Implications & Outlook

• The influx of Indian capital could further deepen liquidity and competition in the UAE’s real estate market, attracting more global participants.

• The UAE is likely to accelerate development of real estate, infrastructure, and enabling technologies (e.g. property tokenisation) to cater to this growing wave of investors.

• Institutional investors and developers may also reposition their strategies to appeal to Indian buyer preferences.

This development underscores the evolving financial relationship between India and the UAE — one that is increasingly investment-oriented and shaped by reforms on both sides of the border.