Dubai’s Growing Japanese Community: Hussein Najeeb and Mayuko Koyama Speak to Forbes Japan on Real Estate Opportunities

The United Arab Emirates has recorded a notable increase in Japanese residents over the past two years. The surge is linked to Dubai’s booming real estate market and an increase in Japanese investment in the UAE. In a recent interview with Forbes Japan, Hussein Najeeb and Mayuko Koyama discussed why more Japanese investors are choosing Dubai’s real estate market.

In 2024 alone, Driven Properties’ Japan team reported 100 transactions worth more than AED 4.6 billion (¥186.8 billion). About 80% of these purchasers were investors who bought off-plan properties with the intention of earning rental income and capital gains upon handover. These numbers resulted in commission revenues increasing 1.5x compared to the previous year.

Accordingly, here are a few key points that motivate Japanese investors in Dubai real estate:

• Tax benefits: No personal income tax, no tax on capital gains or rental income. Even after the 2023 corporate tax hike to 9%, individuals remain untaxed.
• Stable currency: The dirham is pegged to the U.S. dollar, lowering currency risk.
• High rental yields in Dubai: Net returns in the emirate average 5% compared to around 3% in Tokyo.
• Dubai Golden Visa: The coveted 10-year residence visa available with property purchases above AED 2 million (¥80 million), covering the buyer’s family as well.

Similarly, many of Dubai’s lifestyle offerings attract Japanese people to move and reside in Dubai – notably, safety and education. Dubai is one of the safest cities in the world; Abu Dhabi and Sharjah also receive excellent ratings. Furthermore, the diverse range of high-quality international schools is attractive for families seeking long-term educational opportunities.

Additionally, Dubai is a very welcoming global city, with 80% of its residents being foreigners from more than 200 nations and regions. The city is continuously expanding with major infrastructure projects, shopping malls, skyscrapers, and artificial islands, driving population growth and urban expansion.

Among all of these, the central drivers for Japanese investors and families choosing Dubai are education opportunities, tax planning, and asset diversification. Mayuko Koyama, Office Head at Driven Properties Japan noted, “It’s not just about safety and high returns. Dubai offers freedoms and opportunities you can’t find in Japan.”

While Dubai’s strengthens its position as a leading destination for relocation and investment, Hussein Najeeb, Partner at Driven Properties presented a note of caution. “Compared with Tokyo or Singapore, Dubai is still relatively affordable, but developers may be oversupplying the market.”

Changes in the Number of Japanese Living Abroad Since the Pandemic

Japanese overseas relocation trends have changed since the COVID-19 pandemic. According to data from Japan's Ministry of Foreign Affairs, the number of Japanese nationals has begun to fall in countries that were once popular destinations for overseas residents.

In the United States, the Japanese population fell from 446,950 people in 2017 to 413,380 in 2024. Aside from the pandemic, the United States saw fewer corporate postings as online work increased, contributing to the population reduction. In addition, numerous Japanese citizens departed, citing worries about public safety and expensive living expenses.

In China, the Japanese population fell from 150,000 in 2012 to 97,538 in 2024.In addition to the pandemic, economic slowdown and political tensions between China and Japan are believed to be contributing contributors to the population reduction.

In contrast, other countries saw an increase in Japanese residents. These countries include Australia, Canada, Singapore, Germany, South Korea, and France.

Notably, the United Arab Emirates stands out with its recent increase in Japanese residents. Currently, it’s ranked 27th worldwide with 4,775 residents, presenting two consecutive years of growth at roughly 5% annually. This increase in residents is attributed to Dubai’s booming real estate market in 2025.

For further insights and comprehensive real estate advisory services, please contact Driven | Forbes Global Properties at +971800374836.