Why more gcc nationals are investing in dubai real estate in 2025
Why GCC Nationals Are Investing in Dubai Real Estate in 2025
Discover why more GCC nationals are choosing Dubai real estate in 2025, driven by strong returns, stability, lifestyle appeal, and clear regulations.
Over the past few years, the way people in the Gulf buy property has been changing. More GCC nationals are starting to look beyond their home countries, especially as Dubai is no longer seen as just a place for short visits, but more like a second base for family life and long-term plans. Younger investors, family decision-makers and second-generation business owners are also thinking more openly about owning property outside their own borders, as long as it still feels close and familiar.
This blog looks at what is really driving this shift in 2025, what the numbers are saying, and why Dubai property is becoming part of the investment plans of more GCC nationals than before.
A Snapshot of the Numbers
Dubai's property market is showing strong signs of activity. In early 2025, residential property prices were up by around 15.8% compared to the previous year. Rents also moved higher, though at a slower pace. By May 2025, annual rental growth was sitting at about 8.5% across all residential properties. A report from Khaleej Times states that transaction activity also picked up. By the end of October 2025, Dubai’s residential real-estate market had already reached AED 540.1 billion (US$147 billion) in sales, and in the third quarter alone, it logged 59,228 transactions worth AED 170.7 billion
Among GCC nationals, Saudi buyers accounted for around 11% of foreign off-plan purchases in early 2025. That may not sound massive at first, but for one nationality group, it's a substantial share. Dubai Land Department data gives a clearer picture of where the money is coming from. UAE nationals are leading the way, with 3,267 property transactions worth around AED 16 billion in Dubai so far. Saudi buyers are next, with deals totalling about AED 5 billion. After them are investors from Qatar, Kuwait, Oman and Bahrain.
When all of this is put together, GCC investors spent nearly AED 24 billion on Dubai property in the first nine months of the year. That level of activity shows that buyers from the Gulf are no longer just looking at Dubai from the outside. They are already part of how the market is moving.
Factors Shaping the Trend
So what is pushing more GCC buyers in this direction? Let's take a closer look.
Easy Access
Dubai is geographically and culturally close to Gulf nationals. Flights are short and frequent, time zones are the same, and the language, food and lifestyle already feel familiar. Because of that, buying property in Dubai doesn't feel like stepping into the completely unknown, as investing in Europe or the US might. Many GCC buyers see it as an extension of their own region rather than a foreign market.
Investment Returns and Value Proposition
Dubai's residential rental returns are among the highest in the world and are competitive with many other markets in the region. In some communities, gross rental yields have been hovering around 6% in 2025, which attracts investors seeking steady income rather than price jumps. At the same time, property values have been rising, with annual price growth of around 15.8%. GCC investors who already own property in their home countries view Dubai as a way to diversify their portfolios while staying close to home. Buying in Dubai also allows them to add a property to their portfolio without dealing with a completely unfamiliar system or culture.
Lifestyle and Dual-Purpose Investment
Investment is not always just about numbers for Gulf buyers. A home they can use during holidays, a place for family members to stay during visits, or even an apartment for their children when they move to Dubai for university, all play a role in the decision. It becomes a mix of long-term value and day-to-day usefulness, rather than just a financial asset sitting on paper. The combination of investment and personal use can align well with the preferences of GCC nationals who may seek a second home abroad, but still within the Gulf region.
Policy and Regulatory Environment
Dubai has been focusing on making its property market easier to understand and more trustworthy. Over the past few years, more information has been made available through digital platforms, clear transaction records and better access to updated market data. Buyers can now look up property history, area trends and pricing with much less effort than before. Legal processes have also become more structured, which helps reduce confusion, especially for buyers coming in from outside the UAE.
All of this adds a level of comfort for investors from the Gulf. On top of that, the UAE's role as a regional hub for business, travel and long-term living also makes owning property more practical. It feels less like a paper investment and more like something connected to real life across the region.
Why Invest in 2025?
The timing matters because several things are lining up in 2025 that make Dubai more appealing to GCC buyers.
- Supply in popular communities is still tight, especially for villas and higher-end homes, which supports steady price growth.
- Transaction activity picked up in the first half of 2025, with both prices and deal volumes moving higher.
- Strong home currencies and stable local markets in parts of the GCC are making Dubai look more predictable than some overseas options.
- Buyers are moving away from short-term flipping and more towards long-term ownership, which lowers overall risk.
Risks and Important Considerations
Even though the trends are positive, GCC investors should still examine potential risks and review the details before buying.
Supply & saturation: In some apartment areas, more new buildings are coming into the market, and that can put pressure on rental returns and how easily you can sell later.
Yield versus premium: If a buyer pays a high premium for a branded residence or luxury finish, the rental yield may be lower than expected. A 4 %-5 % yield in such cases may be acceptable, but the investor should be comfortable with longer-term value rather than quick turnarounds.
Legal & ownership clarity: One must check the freehold or leasehold status, service charges, developer completion record, and pay heed to off-plan purchase risks (for instance, delays). Even though Dubai is improving its property rules and systems, doing proper checks still matters.
Currency and regional exposure: GCC investors should consider how much they will actually make upon converting their funds back to their home currency, and how a property in Dubai fits with everything else they already own at home and in the region.
Macro risks: Slowdowns in the global or regional economy, changes in interest rates, or sudden shifts in oil prices can all affect how much investors pay to finance their property. Even though Dubai has shown it can handle pressure better than many markets, outside factors still play a role and cannot be ignored.
Tips for GCC Nationals
Most buyers focus on the big things like price and location, but there are a few minor points worth thinking through as well.
- Factor in service charges and maintenance costs, as these can affect net returns more than expected.
- Check how easy it is to rent or resell in that specific building or community, not just the area as a whole.
- Look at the handover timeline if you are buying off-plan and plan accordingly for any delays.
- Review the full payment plan to ensure it aligns with your cash flow, not just your current budget.
- Think ahead about property management, especially if you will not be based in Dubai full-time.
Conclusion
Interest from GCC nationals in Dubai property does not appear to be a passing phase. Proximity, familiarity, and current market conditions are giving many buyers solid reasons to consider the city more seriously. Price growth, rising transactions, and steady rental demand are no longer topics of discussion. They are showing up in real data and real buyer activity across different communities. At the same time, challenges still exist and should not be ignored, as rising supply in some areas, global economic shifts, and the need for proper checks can affect outcomes if decisions are rushed or based only on optimism. When buyers are clear about why they are investing, set realistic expectations, and choose the correct location and timing, Dubai can naturally fit into their property plans for 2025.
If you want to talk through your Dubai property plans with people who actually know the market, you can reach out to our team anytime. Contact us, and let's explore your options together.
