Last year, Dubai's real estate market gained huge traction among Indian investors. According to the latest research, they emerged as the top buyers of local real estate, trumping investors from Russia, China, Pakistan and the UK. They accounted for 40 per cent of all home purchase transactions in the region, with a total value of Rs 3.5 trillion, which is almost double the net income in 2021.
40% of the home buyers are from India, with the majority coming from Delhi-NCR, Ahmedabad, Surat, Hyderabad and Punjab. The remainder are Indians living in the UAE (40%) and global Indians living in different parts of the world (20%).
The average cost of a home purchased by an Indian ranges from Rs 360 million to Rs 380 million.
One of the records was set by Mukesh Ambani, the country's second richest billionaire. He bought a villa in Dubai for US$163 million (Rs 1,304 million). Apart from business people, there are many active investors among the A-list stars of Bollywood, including Shah Rukh Khan and Sanjay Dutt.
According to the Dubai Land Department (DLD), Indians have dominated Dubai's real estate market for the past decade. (They have been the top three nationalities buying property in Dubai since 2004, purchasing Dh83.62 billion worth of real estate from 2015 to 2021).
In 2019, they topped the list of nationalities buying property 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.
A number of factors make Dubai an attractive destination for Indians looking to invest in real estate, including
Strategic location: Dubai's location at the crossroads of Asia, Europe and Africa makes it an ideal hub for international trade and business. This has prompted Indian investors to look to expand their operations into new markets.
Stable political climate: Dubai has a stable political climate and a business-friendly government, which makes it a safe place for Indian investors to park their money. The government has been consistently supportive of foreign investment and has taken a number of steps to make the region more attractive to investors.
Strong economy: In recent years, Dubai's economy has been growing, driven by the price of oil. This has created a wealth of investment opportunities for Indians who are eager to take advantage of the region's growth potential.
Growing real estate market: The city's strong and diverse economy has helped create a thriving real estate market. According to Realiste, it grew by 20-40% in 2022 and will grow by up to 46% in 2023.
Developed infrastructure: Dubai is known for its world-class infrastructure, including first-class residential and commercial properties. Many highly rated schools, parks, water areas, luxury restaurants, commercial centres, 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, meaning there is no income tax, corporation tax or capital gains tax, making it an attractive destination for investors looking for a higher return on their investment.
Growing tourism industry: Dubai is a popular tourist destination and the growing tourism industry is driving 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.
Demand is set to grow further over the next few years, and the key driver will be the UAE's tech boom. Local officials are supporting the development of infrastructure for start-ups, which has already transformed Dubai into an emerging global innovation hub. This in turn has attracted more capital, talent and opportunities for all sectors, including real estate.
Real estate is considered to be one of the key drivers of the UAE economy. Because of this, the sector is opening up to innovation to streamline the processes associated with real estate transactions and accelerate market growth. So-called proptech (real estate technology) addresses these needs. They can increase the ease of searching and buying real estate, enhance market access by providing more accurate Martlet data, and much more.
One of the most significant benefits of real estate technology (proptech) for Indian investors is that they are able to search for and invest in properties in Dubai from the comfort of their homes. For example, Realiste, a Dubai-based proptech company, has developed an AI-powered platform that offers investors this opportunity by showcasing the best flats on the market and data about their price growth, ROI and rental yields. In addition, it allows people to buy off-plan properties online directly from developers.
Another advantage of property technology is increased transparency. For example, Realiste's tool allows investors to easily compare current and future costs in different parts of Dubai.
This 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 investment.
