Why Indian Buyers are Turning to Dubai’s Real Estate Market this Festive Season
During the festive season, property purchases in India surge by 20-30%, with many buyers now increasingly investing in Dubai, where Indian nationals have become the largest group of real estate investors.The festive season is typically synonymous with a significant increase in property purchases in India, with an average spike of 20-30 per cent being observed in recent years. This impetus can be attributed to multifactorial reasons – festive discounts and financial incentives offered by developers, a more competitive market and pricing, and favourable interest rates. Buyers’ keenness to invest in property during the festive high is also steeped in tradition and the emotional appeal of new beginnings, making their purchases especially memorable. In the last few years, we have observed many such buyers shifting their lens to Dubai. Indians have consistently been listed among the top five nationalities of homebuyers in Dubai. And, as per recent data published in the Better homes Residential Market Report, Indian buyers have overtaken their British counterparts to emerge as the largest real estate investors in Dubai’s flourishing property market. This uptick is especially evident in the increase in the amounts of money being sent abroad by Indians under the Liberalised Remittance Scheme – as per data released by the Reserve Bank of India, a record-breaking USD 27.4 billion was sent abroad in April 2023-January 2024, a significant increase over the USD 27.1 billion recorded in FY23. There are several reasons why Indians are increasingly looking to Dubai’s real estate sector when it comes to investing in property. The most pertinent of these are as follows:
An appetite for growth
Dubai’s government has been making significant and aggressive strides towards attracting foreign direct investment (FDI), which include offering investors long-term resident visas and permitting 100 per cent FDI in certain sectors. This investor-friendly ecosystem is further complemented by the country’s transparent disclosure regulatory environment, making Dubai a trusted destination for cautious and savvy investors. Dubai’s rental market is typically quite lucrative for property owners, given that the rental yields are higher than most other global cities and because the likelihood of capital gains is also quite high. With Dubai continuously working to expand both its infrastructure and city limits, we foresee that buyers can continue to expect excellent returns on their real estate investments. Dubai’s economy is witnessing a growth curve, driven by key sectors including tourism, real estate, trade and logistics, which is further propelling interest in both commercial and residential properties. Indian investors are also drawn to Dubai’s policy of not taxing capital gains or real estate purchases, allowing them to maximise their returns as compared to similar investments in India. Offering Indian buyers additional peace of mind is the prospect of full property ownership in designated freehold areas, which allows them complete control over their investments.
A global epicentre
Dubai’s locational advantage is its proximity to major global cities and to India, which offer Indian investors the reassurance of convenience in terms of managing their assets. From an investment perspective, Dubai’s prolific and varied real estate sector offers prospective buyers’ options across segments – from opulent villas to well-priced apartments. This affords investors the luxury of choice in terms of aligning their investment as per their financial goals and aspirations. The undercurrent of strengthening ties between India and the UAE offers even more reassurance to prudent Indian investors – India’s longstanding history of economic and cultural ties with the UAE have been further strengthened with bilateral agreements that are aimed at boosting trade and investment between both nations.
A lifestyle upgrade
Today, Dubai is synonymous with world-class luxury and the same holds true for its physical and social infrastructure. With state-of-the-art health facilities, efficient public transit systems, and vibrant dining and recreational options, Dubai offers potential residents the opportunity to enhance their quality of life. Potential residents are also drawn to Dubai’s reputation of being the safest city in the world, with the lowest crime rates. The Dubai government too is encouraging expats to live, study and work with ease in the country by way of the coveted renewable Golden Visa, which is valid for 5-10 years and is renewable. Property owners in Dubai are eligible for a renewable Golden Visa without the intervention of a sponsor, provided that the total value of their properties exceeds 2 million dirhams. Holders of the Golden Visa also receive additional benefits such as seamless travel within and beyond the United Arab Emirates, the ability to own businesses and sponsor immediate family members, and also access 18 destinations without an additional visa. This is an added incentive for upwardly mobile Indians, who are keen to expand their horizons and enjoy an improve social and professional standing.
Real estate investments in Dubai are more than just mere property purchases for savvy Indian investors – they are representative of these buyers’ keenness to access a global hub of trade and commerce, enjoy an elevated lifestyle and receive the most lucrative returns on their investments. To them, investing in Dubai is equivalent to securing a thriving future, embracing new opportunities, and becoming part of a global movement focused on growth and evolution.
