Indians Invested Rs 16,800 Cr In Dubai Realty Till Sept: Report
Indians have emerged as the leading foreign investors in Dubai’s real estate market, data unveiled by the Department of Real Estate Studies & Research, Dubai Land Department (DLD) show. According to the report, Indians, in the first nine months of 2018, have invested over Rs 16,800 crore in various real estate projects across Dubai, expecting high returns.
Strong trade ties between India and the United Arab Emirates (UAE) have brought positive results and opened up new avenues for Indian investors. Dubai, in particular, has emerged as the most preferred location for property investment in recent years. In fact, according to the DLD, Indians have been consistently ranked as the top foreign property investors in the Emirates’ realty sector and their investments accounted for over $ 3.2 billion or Rs 22,584 crore in 2017.
So, what makes Dubai real estate this attractive for Indian foreign investors?
Big returns: The UAE is one of the fastest growing economies and its business-friendly regulations have attracted investors. Dubai offers a favourable environment for those looking to purchase a property with assured capital gains and high rental yields being major factors which Indians wish to capitalise on. Besides capital appreciation, there are other advantages for buyers such as ease of property registration and transparency in dealings through strict laws as well as tax-free returns on rental income. This is especially true in respect of investment in second homes or when buyers plan to convert old money to new money for higher returns as profits attained on properties in Dubai in the form of rents and resale are quite high.
Owing to lack of incentivised benefits for investments in the realty sector and skyrocketing property prices in India, Indians are more open to exploring options in Dubai. A residential property in a major Indian city, say Mumbai, would cost a buyer Rs 40,000-50,000 per square foot (psf). On the other hand, a similar property in the heart of Dubai city, like Business Bay, would cost only about Dh 1,000 psf. Even in a high-end location, a property would cost about Rs 25,000 psf or Dh 1,480 psf.
Emerging hotspots: Dubai has many options for property buyers across various categories. One could pick from luxury properties such as villas, beach properties, furnished homes and also affordable houses such as compact 1BHK apartments. According to the data released by the DLD, Business Bay is a top performing locality with 1,934 transactions worth almost Dh 4.2 billion.
There are many localities where foreign nationals can purchase freehold properties. Buyers wanting to park their money can consider other locations namely Dubai Marina, Al Barsha South Fourth, Al Warsan 1, Jebel Ali First, Al Hebiah Fourth, Al Thanayah 5, Burj Khalifa and Al Yelayiss 2. Those looking for affordable properties can also invest in Jumeirah Village Circle, Dubai Land and Al Sufouh.
To further accelerate this growth, Dubai-based developers, such as Nakheel, Falconcity of Wonders, Sobha Realty and Geminit, are actively promoting their projects in India by organising property shows and seminars. Emaar Properties is a Dubai-based group with its subsidiary, Emaar India, looking after realty development activities in India. Moreover, with technological access in property search through various online portals, buyers can find options most suitable to them with just a click. Moreover, proximity to India is one more vital factor which makes Dubai a sought-after city for investment.