As seen by their rising investment outlays, particularly for buying second residences in the Emirate, Indian investors have long had a soft spot for real estate opportunities in Dubai.
It won’t be long before a sizable portion of Indians makes Dubai their second home. According to Indians’ rising levels of investment in the Emirate, it appears to be quickly becoming a reality! Due to Dubai’s effective government, commercial prospects, economic growth, first-rate infrastructure, greater quality of life, welcoming local community, and tax-free returns, Indian citizens have become the country’s largest real estate investors.
Indian investors gravitate increasingly toward Dubai’s capital growth and its dollar-pegged currency. For many Indian investors, notably HNWIs and UHNWIs, the fact that the currency has remained mostly unaffected by Forex swings is a major benefit. In contrast to the built-up area approach used in other Indian cities, real estate units in Dubai are also sold based on their carpet areas. As a result, Indian investors are continuously attracted to Dubai’s thriving real estate industry. Investors are keeping a closer eye out for profitable real estate acquisitions in the Emirate. The investor brigade also includes Indians who are now employed in the UAE, in addition to those who are headquartered in India.
Past Figures- where the love affair deepened
- According to the DLD (Dubai Land Department), real estate investment growth would reach Dh226 billion in 2019.
- The growth rate for investments in unfinished or under-construction real estate was 42%.
- With over $2.2 billion in property investments in 2019, Indians came second to Emiratis. However, their total population was higher, coming in at an amazing 5,426 people.
- With the RBI’s lenient policy allowing for legal remittances of up to $250,000 per year, Indian investors became more drawn to Dubai. Another aspect, according to experts, is tax-free returns of between 8 and 10 percent. In Dubai, the process for registering property is likewise more straightforward.
- When compared to India’s major cities, Dubai’s real estate prices are also reasonable. According to estimates, excellent real estate in Mumbai costs anywhere from $700 to 900 per square foot, while property in central Dubai may be bought for as little as $400 per square foot and above. As a result, 93% of real estate transactions in 2019 occurred in freehold areas.
- At the time, Jumeirah Village Triangle had yields that were higher than those in other major cities like Hong Kong, London, and Singapore, at 9.2%.
- There are no taxes due on purchases of commercial or residential property.
How it evolved
- Rich Indians continued to invest in Dubai, particularly small- and medium-sized business owners and influential professionals.
- Throughout the epidemic, second residences became increasingly popular in Dubai, especially given that the Emirate is well connected to practically all major international corporate centers.
- According to experts, Dubai’s rental returns might range from 6 to 10%, which is greater than benchmark rates in a number of other industrialized countries.
- In Dubai, for instance, $1 million will still buy a lot more room than it would in Mumbai, London, Monaco, Singapore, and other places.
- Due to the high levels of supervision and strict legislation in Dubai’s real estate sector, investors feel safer. RERA is strictly enforced here, and the market is much more open and compliance-focused.
- Real estate deals grew by 15% in the first quarter of FY2020–21, with Indian investors playing a larger role than before.
- Many buyers began purchasing homes in the Marina, Palm Jumeirah, and Downtown. Many people expressed a preference for luxurious homes with all the amenities and indicated that they would not mind spending a little bit more for the same.
- Indians who were just interested in their return on investment purchased real estate in places like Meydan, Jumeirah Lake Towers, Jumeirah Village Circle, and Dubai Hills Estate.
- In Dubai, many couples chose apartments, while larger families opted for single-family homes or villas.
- According to experts, real estate sales volumes had reached record levels by June 2021 for every month.
- With many people staying in Dubai for a month or a few weeks on business, there is also a significant demand for serviced flats.
- Dubai now permits 100% firm ownership without needing a local partner, which has increased real estate investment in the Emirate. Residency in Dubai has become more appealing to Indians due to the Golden Visa offer.
Suggestion:- Gold vs. Real Estate Which One Do You Pick
According to experts, Dubai’s proactive policies, effective government administration, and low crime rates are significant incentives for Indian businessmen. They have been highly grateful for the efficient vaccination program in the Emirate as well as many infrastructure improvements. Dubai is also easily accessible for Indians who want a second house in the city because it is only 3.5 hours by plane from Mumbai. The general standard of living is unparalleled and significantly superior to many other cities. A win-win situation is created when you combine these factors with the sizeable number of Indian ex-pats, the variety of culinary and entertainment alternatives, and other cultural commonalities.
