Indian Investment in Dubai Real Estate: Why is it So Popular?

Dubai's real estate market has been an attractive investment by Indian investors who are more attracted to the advantages it offers the market. 

Dubai is an attractive opportunity for investors to diversify their portfolio wealth with high rental yields as well as the tax free return on investment. 

Indian Investment in Dubai Real Estate 

• Data from the Dubai Land Department states that a 55.5% increase has been recorded in the total value of property transactions over the last year. This reached an astounding AED 409.8 billion by January 26, 2024. 

• As of 26th January 2024, there have been 132,616 total property transfers, an incredible 37.3% increase from the last 12 months according to Bayut.

Now you must be wondering why Indian investment in Dubai Real estate is so popular. 

Let’s take a look at the main reasons

Reasons why Dubai Real Estate is popular among Indian Investors

1. Proximity and Easy Access

A big advantage of Dubai is its geographical location, which attracts Indian investors. It is just a few hours flight from major cities in India. This makes it easy for one to be able to visit and control investments in one’s assets often.

2. Investor-Friendly Policies

Dubai’s government makes it hard for foreign investment to fail with long term residency visas for property buyers, 100% foreign ownership and a transparent legal system. Dubai has become an investor friendly environment which makes it a haven for Indian buyers. 

Besides, with an investment of AED 2 million, investors get a 10-year Golden Visa, and AED 750,000 nets a 2-year visa

3. High Rental Yields and Growth in Capital

Looking at the world of rental yields, those assembled in Dubai can enjoy attractive yields higher than many global markets ensuring steady returns. 

Furthermore, with the continuous infrastructural expansion of Dubai, the potential for capital appreciation is very strong. 

Yields in Dubai are typically higher than in Indian metros, making it an appealing option for those looking to generate rental income. It’s on the lines of 5 to 7%, emphasizing the steady returns investors can expect.

Bayut's research found that over the last decade, the average ROI in Dubai across residential properties has been between 6-8% and 8 – 10%. 

However, the average ROI in India’s top cities (Mumbai at 4.05%, Delhi at 2.8% and Bengaluru at 4.35%) as per Anarock Research Q3 2023 report.

4. Tax-Free Environment

Indian investors flock towards Dubai Real Estate Market because of its tax free advantage. This is why investors can maximize their returns without the tax burden that they would have in India.

5. Top notch Infrastructure and Lifestyle

To top it all, Dubai’s world class infrastructure, a luxury lifestyle and a very vibrant expat community (this includes a large Indian population) add to its appeal. 

The city offers the international standard of top notch education and healthcare from top tier institutions, huge shopping complexes, retail centers and entertainment alternatives.

6. Diverse Property Options

Indian investors have a lot of property options to invest in, be it high end villas, commercial spaces or an affordable apartment. 

The variety of this selection of investments is what allows them to position their investments to match with both their financial goals and personal preferences.

7. Strong India-UAE Ties

The culture and history of India and UAE has built the past trust and confidence among the Indian investors. Additionally favorable bilateral agreements make investment easy, given the presence of a large Indian expat community.

Conclusion

The city’s continued expansion of its infrastructure and the investment opportunities it presents are to open the doors wider for Indian investment in Dubai’s real estate market. 

Tax free benefits, proximity and investor friendly policies make it the perfect place for Indian buyers looking for high return. 

With these advantages, it’s no wonder why Dubai continues to be an Indian investor’s top choice.