Top 10 Countries Investing in UAE

Top 10 Countries Investing in UAE - Updated 2023

04 Apr 2023

Percentage of Sales in Dubai in 2023

Dubai's real estate market in 2023 has witnessed an extraordinary surge, surpassing the highs of the previous year. In 2023, Dubai's real estate transactions exhibited a consistent upward trend. The second quarter saw a 2.8% increase compared to the first, laying the foundation for ongoing growth. Notably, the third quarter witnessed a substantial 21.3% surge over the second quarter, emphasizing heightened investor interest and the market's enduring resilience.

1st Quarter 2023: 30,898 transactions (50.6% higher than Q1 of last year) with a total sales value of 88.7B AED
2nd Quarter 2023: 30,264 (54.4% higher than Q2of last year) transactions with a total sales value of 91.21B AED
3rd Quarter 2023: 36,708 (43.9% higher than Q3 of last year) transactions with a total sales value of 109.2B AED

Dubai, one of the most sought-after cities in the world, has been attracting investors from all corners of the globe. If you're planning to invest in Dubai's property market, knowing the top nationalities that have shown the highest interest can be a valuable asset for you.

In this article, we'll take a closer look at the top 10 nationalities of property investors in Dubai for 2023 updated, the percentage of sales, and the top-performing locations to consider for investment. Let's dive in!

Top 10 Nationalities of Property Investors in Dubai 2023

In a noteworthy shift, the demographics of real estate investors in Dubai have witnessed a notable change in 2023. British, Indian, Russian, and Chinese nationals have surged to the forefront, marking a departure from previous trends. Recent data from the Dubai Land Department reveals a dynamic shift from the first quarter, highlighting these nationalities as the frontrunners.

India: Leading the Way (2,198 transactions, AED 36.6 billion)

Indian investors remain stalwarts in Dubai's real estate, drawn by proximity and cultural ties. Areas like Dubai Marina and Downtown Dubai showcase their substantial investments.

China: Global Visionaries (1,453 transactions, AED 24.7 billion)

Chinese investors recognize Dubai's global potential, showing interest in developments like Dubai Creek Harbour. Their transactions are driven by connectivity and business opportunities.

UK: Diversifying Portfolios (1,325 transactions, AED 22.4 billion)

British investors find Dubai appealing for portfolio diversification, leveraging the favorable exchange rate. Areas like Dubai Marina and Palm Jumeirah witness significant transactions.

Iran: Emerging Influence (1,025 transactions, AED 16.5 billion)

Iranian investors are making a notable impact on Dubai's real estate. Their growing presence reflects a keen interest in Dubai's property market, contributing to the city's diverse and dynamic real estate landscape.

Russia: Iconic Investments (894 transactions, AED 14.2 billion)

Russian buyers favor prime locations such as Downtown Dubai, Palm Jumeirah, and Business Bay. The variety of properties and amenities in these areas attract large transactions.

Saudi Arabia: Cultural Connections (784 transactions, AED 12.9 billion)

Saudi investors, with a focus on high-end properties in areas like Emirates Hills, contribute to Dubai's real estate landscape. These high transactions highlight their cultural affinity and ease of travel.

Pakistan: Active Participation (734 transactions, AED 12.2 billion)

Proximity and economic ties drive Pakistani investors to actively participate in Dubai's real estate growth. Their focus on affordable luxury and high-yield rentals contributes to these transactions.

Turkey: Strategic Investments (685 transactions, AED 11.6 billion)

Turkey's influence in Dubai's real estate market is on the rise. Investors from Turkey strategically engage in the market, contributing to the city's vibrant real estate scene with a focus on high-potential areas.

Germany: European Sophistication (625 transactions, AED 10.8 billion)

German investors bring a touch of European sophistication to Dubai's real estate. Their discerning choices contribute to the city's cosmopolitan landscape, emphasizing key areas that align with their preferences.

United States: Global Presence (575 transactions, AED 10.1 billion)

U.S. investor's strategic investments underscore the city's appeal as an international hub, with specific areas resonating with the preferences of American investors.

Percentage of Sales in Dubai in 2022

Dubai's real estate market has seen a significant increase in sales in 2022. According to recent data, there was a 57.4% increase year-on-year and a 6.7% month-on-month increase. If we look at the sales transactions in each quarter of 2022, we can see a steady increase:

  • 1st Quarter: 20,521 transactions with a total sales value of 55.3B AED
  • 2nd Quarter: 22,448 transactions with a total sales value of 59.1B AED
  • 3rd Quarter: 25,503 transactions with a total sales value of 69.5B AED

Off Plan vs. Ready to Move

Interestingly, the demand for off-plan properties has been higher than ready-to-move properties. This is because investors can wait for possession instead of paying extra for ready-to-move properties, which are generally more expensive and limited. Here's a breakdown of sales transactions by type of property in each quarter:

  • Q1: 10,872 off-plan properties and 9,649 ready-to-move properties
  • Q2: 11,016 off-plan properties and 11,432 ready-to-move properties
  • Q3: 13,868 off-plan properties and 11,635 ready-to-move properties

Top 10 Nationalities of Property Investors in Dubai 2022

Now let's take a closer look at the top nationalities of property investors in Dubai for 2022:

  1. India
  2. UK
  3. Italy
  4. Russia
  5. France
  6. Canada
  7. UAE
  8. Egypt
  9. Lebanon
  10. China

Indians make up the majority of investors in Dubai's property market, thanks to the city's Freehold Property Ownership law in 2002 and its booming tourism and businesses. UK, Italy, and Russia also rank high on the list of top nationalities investing in Dubai's property market.

Demand for Properties Under AED 2 Million

Properties under AED 2 million have seen a high demand in Dubai's real estate market, with more than 60% of sales in Q1, Q2, and Q3 falling under this category. Here are some of the top areas to consider for investment:

Apartments Under AED 2 Million in Dubai:

  • Business Bay (AED 1,076,260)
  • Sobha Hartland (AED 1,214,854)
  • Meydan One (AED 568,000)
  • International City Phase 1 (AED 270,000)
  • Jumeirah Village Circle (AED 696,910)

Villas Under AED 2 Million in Dubai:

  • DAMAC Lagoons (AED 1,709,000)
  • Villanova (AED 1,672,475)
  • Dubai South (AED 1,500,000)
  • MBR District 1 (AED 7,988,000)
  • The Valley (AED 1,557,110)

Another factor that has made Dubai a popular destination for property investment is its strategic location. Dubai is located in the heart of the Middle East, making it an ideal gateway to Asia, Africa, and Europe. Its state-of-the-art infrastructure and modern amenities, along with its favorable tax laws, make it a business-friendly hub for companies looking to expand their operations in the region.

Furthermore, Dubai's cosmopolitan culture and welcoming environment make it an attractive place to live, work, and invest in. It offers a diverse range of activities, including world-class shopping, dining, entertainment, and cultural events, making it a desirable location for tourists and residents alike.

In addition, Dubai's government has implemented various initiatives to attract foreign investors, such as offering long-term residency visas, allowing 100% foreign ownership in certain sectors, and providing tax exemptions for investors.

If you are considering investing in Dubai's property market, it is important to do your research and work with a reputable real estate agency. Look for a company with a proven track record of success and extensive knowledge of the market. They can provide valuable insights and help you navigate the complex process of buying or selling property in Dubai.

In conclusion, Dubai's thriving property market, favorable investment climate, and strategic location have made it a top destination for property investors from around the world. With its strong economic growth, modern infrastructure, and welcoming environment, Dubai is poised to continue attracting investors for years to come.