The 21-year-old midfielder had been strongly linked with a move to Liverpool before his switch to Dortmund on a five-year deal was announced in March.
And Dahoud confirmed he had a range of options on the table before deciding to stay in the Bundesliga with DFB-Pokal winners Dortmund, who have appointed Peter Bosz as the club's new head coach following the departure of Thomas Tuchel.
"Yes, there were several [offers]." Syria-born Dahoud told Bild. "But I wanted to stay in Germany, I am at home here. The Bundesliga and the fans are great.
"Here are the best stadiums, everything is organised very well and we have the best security possible. What more could you want? We live in a great country."
Germany Under-21 international Dahoud believes the time was right to move on from Gladbach, having spent his entire professional career at the club.
"I am ready for the next step now," Dahoud added. "After seven years in Gladbach it's time to search for a new challenge, to experience other things. Changes are part of our life and they are good for us. The whole package at Dortmund is great.
"It's too early to talk about goals. I have to settle in Dortmund first, get to know my new team-mates and the environment, bring my performances on the pitch. And then take one step after another."