Dubai’s diversified economy attracts investors from more than 150 countries as the options for investment are enormous for individual and institutional investors. Dubai’s real estate sector has seen extensive growth over the years and among all the nationalities Indians are reported to be the major share holders of foreign investment in residential and commercial real estate.According to reports, Indians invested nearly AED 7 billion in Dubai real estate in the first half of the year. Anjum Bhat, Digital marketing manager at Aston Pearl Real Estate says we have the most number of inquiries coming from Indian nationals working or owning business in India, GCC or the west. Indians form the majority of the expat population in the United Arab Emirates and are the most prominent expat community, owning small to large businesses and holding key positions in large companies. The Indian impact can be seen by visiting areas like Karama and Bur-Dubai where Indians have created a home away from home. The Bollywood Park coming up in Dubai is a mark of the age old bonding between the two countries. Being in close proximity to India is one of the main reasons of the Indian influx into the UAE looking for opportunities in career, trade and business. This quick access from India to the UAE brings many Indian businessmen to buy property in Dubai as Investing in a city that is only a short flight away makes complete sense.
Ease of buying property
Buying a property in Dubai is much easier and straight forward than buying a property in India as there is no or minimum paperwork involved and the process is pretty straight forward that keeps you clear on what’s happening and how quickly it’ll be done. This sound too good to an Indian who is used to the intricate buying process back home that will leave you exhausted. Transparent laws of owning and renting a property make it simple to manage a single or a portfolio of properties while paying no taxes on rental income.
India is the second largest country in terms of population, and the simple economics of supply and demand keeps property prices upwards with the population always on an increase, thus keeping the demand always elevated than supply. Property prices in major cities in India are much more expensive that in Dubai and even after paying a higher price you’ll have to compromise on facilities, amenities, safety and connectivity with other areas. Interest rates on property mortgages in Dubai are less than half compared to the same in India. This gives the mid and high income earning Indian expat an opportunity to become a home owner than paying high rents.
Dubai offers high rental yields compared to other major cities around the world, and this makes it a strong reason for Indians to buy property in Dubai and have a second income from rentals while the property keeps gaining capital appreciation. Investing in off-plan property can bring significant financial gains once the property is completed and this key is known to Indian property buyers and investors and they have used it well in the last few years. For Indian nationals, buying off-plan property in Dubai is more attractive as the new developments lie within the heart of the city but in India buying off-plan means looking at developments far from the cities as there is no scope of new development within the city limits, and these projects mostly don’t follow delivery time frames. Dubai has a number of new developments underway and these projects are expected to add more power to Dubai’s tourism magnet and to increase the demand for residential units.
A promise of growth
Dubai is a land of opportunities and the growth it has witnessed is remarkable. With the continued growth comes a promise of benefits that Indians have realized over the years. The factors including the EXPO 2020, continued growth of the tourism and other sectors, continued influx of people and the forward thinking economy is what investors are looking at to prop-up the demand for commercial and residential property and keep the market prolific for medium and long term investments. The fact that the UAE is the most politically stable country in the region and enjoys the status of a “safe haven” will keep investments flowing in, and Indians will love to continue being on top of the list.