It is no overstatement to say the UAE is one of the world’s most diverse countries. With a staggering 87% expatriate population, foreign buyers are the fuel of the market, accounting for at least half of all residential sales. Among them, British investors have emerged as a dominant force. Data shows that in 2024, UK nationals accounted for approximately 15% of all foreign real estate transactions, making them the second-largest buyer group after Indian investors. Today, there are more Brits in Dubai than in Oxford, with the British expatriate population now estimated at 240,000 – a number that keeps rising.
So, what is driving UK buyers to Dubai?
Since 2020, Dubai’s property market has been on a record-breaking run, approaching what is now a 50-month price rally – the longest period of sustained growth since before 2008. This momentum is fuelled by a resilient economy, liberalised visa rules, and an influx of high-net-worth individuals seeking a strategic place to invest and settle. Ask most British buyers why they’re making the move, and the first answer will be tax, quickly followed by lifestyle appeal.
UK investors have long shouldered high tax burdens, but in the past year, policy changes have squeezed investors to more tax-efficient climes – a phenomenon referred to as the ‘great British exodus’.
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Chris Whitehead, Managing Partner at Dubai Sotheby’s International Realty, explained: "Unlike the UK, where various taxes eat into property returns, Dubai offers a largely tax-free environment. Here, investors can grow their wealth without the burden of capital gains, income, or inheritance taxes – an increasingly attractive prospect for those impacted by recent changes to the non-dom tax regime.”
In real terms, that difference is staggering: a £5 million property in London could cost a UK investor over £1.3 million in taxes over a decade, factoring in stamp duty and rental income tax. In Dubai, that number is zero.
“The math is simple: investing in Dubai means keeping more of your returns,” Chris added.
Higher yields, quicker returns
Another pull for investors is the abundance of off-plan opportunities in Dubai, relative to London. In 2024, off-plan sales in Dubai made up over 64% of all property deals, with hundreds of active projects currently underway. This trend has continued with strength into 2025, accounting for more than half of all real estate transactions in the first quarter. These numbers are a stark contrast to London’s off-plan market, which throughout the same period hit its lowest level since 2013, with just 32% of new homes sold before completion.
“Dubai is still a relatively new city, and growth here is nothing short of frenetic,” Chris said. “Part of the appeal of the London market is its heritage, but this also means there are very few off-plan developments. Relative to ready homes, off-plan opportunities typically provide quicker capital appreciation and higher returns, particularly when from a trusted developer.”
Some of the most prestigious off-plan residences on the market in Dubai include Baccarat, Four Seasons and Eden House.
“Because of this, UK buyers are turning to Dubai for quicker growth and higher returns, and to London for long-term legacy investments,” Chris said. “In many ways, the two markets complement rather than compete with each other, with investors increasingly playing both for different reasons.”
Rental yields in Dubai are also currently higher than in prime London, ranging between 5-9%, relative to London’s 3-4%. While yields are higher in Greater London, for investors, the numbers are hard to ignore.
Brits Are Not Just Investing, They’re Settling
Financial incentives are just one part of the picture. A growing number of Brits are moving to the Emirates to settle, rather than just invest, attracted by its innovation-driven business landscape and sun-soaked, elevated lifestyle.
“We’re seeing a real shift in mindset,” said Chris. “Ten years ago, Dubai was a largely transient city: buyers came for second homes or to invest in rental properties. Today, more of our British clients are making Dubai their primary residence, bringing with them their businesses and families. The appeal for many is simple: year-round sunshine, incredible living spaces, and a thriving, well-regulated business ecosystem that isn’t restricted by punitive taxation.”
The UAE has long been ranked one of the world’s safest countries, with very low crime rates and robust police infrastructure. It is also a magnet for entrepreneurs, with straightforward business licensing, full foreign ownership in most sectors, and more than 40 free zones.
“It’s about security, convenience, and a sense of possibility,” Chris added. “As the city welcomes more people moving for the lifestyle rather than just investment appeal, we anticipate a surge in demand for ready, turnkey properties in neighbourhoods that are close to excellent schools, such as Emirates Hills and Jumeirah Golf Estates.”
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This surge of British investors into Dubai signals a shift not only in where people are buying but in how they see the future. While London remains a market of heritage and stability, Dubai is fast-moving, high-yield, and built for opportunity. With new developments on the horizon and demand showing no signs of slowing, the focus now shifts to how UK buyers will influence the market.
