With the ongoing trends in UAE real estate, wealthy Indian investors can set a channel of up to $20bn yearly into UAE assets, under the new rules of the Reserve Bank of India. This demand rises when the property market in Dubai records unprecedented growth by 226,000 transactions valued at AED 761bn, which is $207 bn in 2024 alone. Experts reported a widening funding gap, increased need for private equity, and the emergence of tokenization as the main drivers of the next investment phase in the UAE.
Indian investors boost UAE real estate as market hits record growth
Wealthy Indians are stepping up investment in the UAE, driven by regulatory reforms and the booming property sector. The new revised guidelines under India’s Foreign Exchange Management Act (FEMA) now provide greater flexibility for cross-border investments.
Businesses can invest abroad within the Automatic Route without prior approval of the Reserve Bank of India, while individuals more often use the Liberalised Remittance Scheme (LRS), which permits transactions of up to $250,000 annually.
Outbound investments from India have increased up to 67.7 per cent in FY2024-25 to $41.6bn, according to Ernst & Young. Outward remittances also hit a record $29bn between April 2023 and February 2024, up 21.7 per cent annually.
The UAE remains a top choice for Indians, and the Indians are the largest foreign investor group in the Emirates, especially within real estate. The sector, valued at nearly $680bn, posted 226,000 transactions worth AED761bn in 2024. This is a 36 per cent rise in volume and 20 per cent in value compared with the previous year. However, Dubai alone attracted more than 110,000 new investors, up 55 per cent.
Experts highlight that the property market requires over $100bn in funding each year, while traditional capital sources cover only 30 per cent. This gap is opening more opportunities for private equity, private credit, and non-banking finance companies.
Digital innovation is also reshaping investments. The Dubai Land Department has launched a tokenization pilot targeting AED60bn ($16.3bn) in tokenized real estate transactions by 2033. Internationally, tokenized assets could reach $16tn by 203o, with real estate among the biggest categories.
Beyond properties, the UAE is attracting capital into logistics, warehousing, and light industry, backed up by government incentives and population growth. The country’s Vision 2040 aims for 13.6 million residents, up from today’s 10million. Over 4,300 wealthy Indian families migrated into the Emirate in 2024, bringing $5bn in investment assets.
With strong demand, regulatory support, and rising institutional participation, the UAE is cementing its role as a global hub for Indian capital.
Source: Arabian Business
