Huge infrastructure spending, generous income tax policies, and an enhanced open-door approach to immigration after the coronavirus pandemic have attracted thousands of foreigners to invest in Dubai’s real estate market, Invest-Gate reports.

According to Betterhomes, Russians were the largest non-resident buyers of homes in the first quarter of 2023, but they fell to third place by the end of the year. Indian and UK buyers recorded the highest number of transactions throughout the year.

Betterhomes also noted a significant increase in buyers from Egypt, Lebanon, Pakistan, and Turkey, which confirms Dubai’s dual role as both a safe haven and an attractive destination for the wealthy.

Although Russian and Chinese inflows are slowly tapering off, increased interest from Indian investors could keep any downturn swift and shallow, said Hakim Abdeljaouad, Managing Director at Kroll’s Valuation Advisory Services.

Knight Frank, a property agency, indicated that a record-breaking 431 Dubai homes were sold for more than $10 mn in 2023, nearly doubling the previous year’s figure and cementing Dubai as the largest market for such high-value properties globally.

However, Knight Frank predicts a more moderate 5% increase in house prices for Dubai’s three prime residential areas (Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island) in 2024, following a 15.9% increase in the year leading up to September 2023.

Meanwhile, Dubai is forecast to deliver just 13,000 homes annually over the next six years, well below the 30,000 run-rate over the last 15 years, suggesting a shortfall that could underpin demand, according to Faisal Durrani, Partner and Head of Research (MENA) at Knight Frank.