Investor Guide · Italy
Investing in Dubai from Italy
Why Italy invests in Dubai
Over the past few years, Italian investment in Dubai's property market has surged, signalling a significant shift in global real estate dynamics.
Historically, the majority of overseas investment into Dubai real estate has come from India, Russia, and the UK. However, recent trends show a remarkable increase in investment from Italian investors, as well as their Western European counterparts from Germany and France, entering the market in record numbers.
By 2020, Italian investors already owned USD 1.1 billion worth of Dubai property, underscoring the growing momentum of Dubai's real estate market. This ongoing trend highlights the increasing confidence of Italian investors in Dubai's economic prospects and the diverse opportunities it offers - particularly given the volatile domestic market they have endured in Italy in recent times.
The Italian property market experienced only modest growth in Q3 2024, with nationwide house prices rising by 2.2% to an average of EUR 1,851 (USD 2,033) per square metre (sq.m). Quarter-on-quarter, this represents a 1.6% increase (1.3% inflation-adjusted) in Q2 2024.
In Rome, the nation's largest market, the average home price was EUR 3,036 (USD 3,334) per sq.m, showing a minimal increase of 0.9% from the previous year (0.2% inflation-adjusted). Meanwhile, the prime secondary markets of Milan, Bolzano, and Venice are the most costly assets with current average house prices of EUR 4,988 (USD 5,478), EUR 4,610 (USD 5,063), and EUR 4,529 (USD 4,974) per sq.m, respectively.
Despite the overall house price index rising by 2.94% year-on-year to Q2 2024 (2.17% inflation-adjusted) and a quarterly rise of 3.23% (2.97% inflation-adjusted) in Q2 2024, the return on investment remains lacklustre. Consequently, it's not surprising to witness a growing interest from Italian investors in Dubai's property market, which offers promising returns and opportunities.
What to know before investing
Dubai is widely recognised as the strongest-performing property market in the world since 2019. Investors have observed double-digit annual growth post-pandemic, and although the rate of appreciation is starting to slow - experts believe the long-term outlook for Dubai property looks promising. This positive sentiment is due to the broader strength of the UAE’s economy, supported by extensive government initiatives to continue to expand the emirate’s working population.
Total sales value reached AED 141.95 billion, representing a 30% year-over-year increase.
This strong performance was driven by both off-plan and ready properties, reflecting the market's versatility and broad appeal.
The market recorded 50,425 transactions, a 38% YoY increase, underscoring the high demand for Dubai real estate.
The rental sector saw significant activity with 46,000 new rental contracts signed, showcasing strong demand for residential properties.
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