More than ever before, Indians are interested in purchasing property in Dubai. Investing in real estate has emerged as the quickest means to obtain a residence card in the UAE, and Indians have been among the top three countries investing in property in Dubai since 2017.
“In 2019, Indians accounted for 16 percent of all home purchases in Dubai, bringing in more than 8 billion AED. Since the epidemic, demand in Dubai real estate has grown – Q1 2020 witnessed a 15% rise in the number of real estate transactions compared to Q1 2019,” says Shajai Jacob, MD & Country Head – ApnaComplex & CEO – GCC, ANAROCK.
In Dubai, Where Do Indians Invest?
Since the epidemic began, Indian HNIs have shown varying preferences when shopping for properties in Dubai. Another demand variety is in terms of dwelling typology, which mostly consists of flats or villas. Since the epidemic has changed the way offices and schools operate, there has been a rise in demand for larger-sized residences. Existing homeowners in Dubai are increasingly upgrading from typical three-bedroom houses to more spacious 3.5BHK options that provide greater flexibility.
The Economic Dynamics Driving Dubai’s Property Boom
The real estate sector in Dubai contributes significantly to the country’s GDP and is a reliable indication of the country’s overall economic situation. In 2019, real estate accounted for 7.2 percent of Dubai’s GDP. This contribution was 8% in the first quarter of 2020, the highest since the first quarter of 2017.
A Government-backed Global City
In many respects, the true draw of Dubai is the way it is run. The proactive nature of its rulers and the UAE government has guaranteed that the city is always appealing to investors. 74 percent of the eligible population has been vaccinated effectively, and it appears that the target of 100 percent immunization will be met by the end of 2021.
The government has provided significant impetus by enacting significant reforms to corporate ownership and immigration regulations. Dubai now enables enterprises to be owned entirely by foreigners without the necessity for a local partner.
Paradise for Investors
Rental returns in Dubai range from 6 to 10%, which is unheard of in many established markets. In Dubai, a million dollars can buy much more real estate space than in most other metropolitan cities such as Mumbai, Shanghai, London, Singapore, and Monaco.
In addition, the real estate market in Dubai is strictly controlled. A tightly enforced Real Estate Regulation Authority protects investors and holds developers accountable.
All Roads Lead to Dubai
“Dubai has long been a dream destination for Indians. This world-class city’s quality of life is equivalent to that of any of its top worldwide rivals. It is only 3.5 hours by plane from Mumbai, making travel to and from Dubai quite convenient,” Jacob adds. As a result, many Indians are considering Dubai as a second home. The commonalities across civilizations and cuisines contribute to the overall appeal.
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