UAE
Dubai’s real estate market gained significant traction among Indian investors last year. According to the latest research, they became top local property buyers, suppressing investors from Russia, China, Pakistan, and Great Britain. They accounted for 40 percent of all home-buying deals in the area, with Rs 35K crore worth in total, which is almost doubled what it netted in 2021
A sizeable 40% of homebuyers were from India, the majority being from Delhi-NCR, Ahmedabad, Surat, Hyderabad, and Punjab. The remaining were Indians living in the UAE (40%) and global Indians (20%) based in different parts of the world.
The average cost of houses bought by Indians ranges from Rs 3.6 crore to Rs 3.8 crore. One of the records was set by Mukesh Ambani, the country’s second-biggest billionaire. He bought a villa in Dubai for $163 million (Rs 1,304 crore). Apart from business people, there are many active investors among A-list Bollywood stars, including Shah Rukh Khan and Sanjay Dutt.
Factors behind the demand
Indians have dominated the property market in Dubai for the last decade, according to the Dubai Land Department (DLD) data. Since 2004, they have been among the top 3 nationalities to buy properties in Dubai, having purchased real estate worth AED83.62 billion from 2015 to 2021). In 2019, they topped the list of nationalities purchasing properties in Dubai. At that time, Indian investors made 5,426 transactions, followed by the UAE with 5,172, Saudi Arabia, China, and the UK with 2,198, 2,096, and 2,088, respectively.
Numerous factors made Dubai an attractive destination for Indians looking to invest in property, including:
StrategicLocation:Dubai is located at the crossroads of Asia, Europe, and Africa, making it an ideal hub for international trade and commerce. That drives here Indian investors looking to expand their businesses into new markets.
Stable Political Climate: Dubai has a stable political climate and a business-friendly government, which makes it a secure place for Indian investors to park their money. The government has consistently supported foreign investment and has taken several steps to make the region more attractive to investors.
Strong Economy: Dubai’s economy has been increasing in recent years, driven by its oil prices. That has created a plethora of investment opportunities for Indians, who are eager to take advantage of the growth potential of the region.
Developing Real Estate market: City’s robust and diversified economy helped to create a thriving real estate market. According to Realiste’s data, it grew by 20-40 percent in 2022 and will increase by up to 46 percent in 2023.
Developed Infrastructure: Dubai is known for its world-class infrastructure, including top-notch residential and commercial properties. Many high-ranked schools, parks, water areas, luxury restaurants, business centers, etc. All of these make it an ideal place to live or do business for many categories of people, including families.
Tax Benefits: Dubai has a tax-free regime, which means no income tax, corporate tax, or capital gains tax, making it an attractive destination for investors looking for higher investment returns.
Growing Tourism Industry: Dubai is a popular tourist destination, and the growing tourism industry is driving up the demand for real estate, making it a lucrative investment opportunity.
Cultural Ties: Finally, Dubai has a large Indian expatriate community, which makes it easier for Indians to invest and feel at home in the city.
Further growth
The demand will grow further in the following years, and the key driver will be a tech boom in the Emirates. Local officials support developing infrastructure for startups, which has already transformed Dubai into an emerging global innovative hub. That, in turn, attracts more capital, talented people, and opportunities to all industries, including real estate.
Real estate is considered one of the vital drivers of the UAE economy. Due to that, the industry is opening to innovations that can streamline the processes associated with property deals and accelerate market growth. So-called proptech (property technologies) addresses those needs. They can increase the convenience of searching and purchasing real estate, enhance market access by providing more accurate data about the martlet, etc.
One of the most significant benefits of property technologies (proptech) for Indian investors is the ability to search for properties and make investments in Dubai from the comfort of their homes. For instance, the Dubai-based proptech Realiste developed an AI-powered platform that provides investors with this opportunity by displaying the best apartments on the market and data regarding their price growth, ROI, and rental yield. Moreover, it allows one to buy off-plan properties online directly from developers.
Another advantage of proptech is the increased transparency. For instance, Realiste’s tool allows investors to easily compare current and future costs in different districts of Dubai.
That helps to reduce the risk of mispricing and other types of fraud, making it easier for investors to trust the process and feel confident in their investments.
-Press Release by Realiste
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