Rising Love Affair: Indian Investors & Dubai Real Estate

Indians and their love for Dubai are not new, Dubai and India’s enduring relationship is one of the oldest and most successful in the region. They have been among the Top 3 Nationalities investing in Dubai Real Estate since 2004 and continuing.

The city’s bankable location, strong investment and rental yields, capital growth, and laws are some of the few factors that make Dubai a second home for Indians.?

The way Dubai has handled the pandemic, the new visa rules and the ever-growing economy have also attracted India's 2nd Richest man to buy not just one but two Villas worth Millions on the iconic Palm Island.

So, apart from the glittering city lights and infrastructural marvels, what brings Indian investors to Dubai?

Here are the Top Reasons Why Indians are Drawn to Dubai Real Estate

Rental yield

As opposed to India's average yearly return of 2-3%, the average yearly return on residential real estate investment in Dubai is roughly 5-6%. Short-term rental is a major potential that, when properly managed, may allow the owner to scale appreciation to at least 8-10%. Investors can also utilize their property as a holiday house when visiting Dubai.

0% Property Tax

Yes, that's right! Dubai doesn't have property tax. A recent report on global property taxes by Knight Frank and accountancy giant EY revealed that expatriates buying properties in Dubai are paying one of the lowest taxes on their property purchases in Dubai. You only pay a 4% Dubai Land Department fee while purchasing your property in Dubai.

Currency

The dirham gets stronger to the rupee each year by 3-4% thus giving you a de facto appreciation of at least that much on your investment since the dollar is directly pegged to the dirham. The Indian rupee was worth 17.5 dirhams in July 2017 and 22.23 dirhams in November 2022.

Opportunities

Dubai’s growing reputation as the Middle East’s top business hub showcasing a particular focus on government initiatives supporting start-ups and entrepreneurs along with the golden visa for talents is also driving Indians to Dubai.

And so many more

Other key aspects include remarkable financial benefits, high return on investment, excellent infrastructure, exceptional hospitality, and more, making the emirate the indisputable investment paradise for Indians - or simply anybody trying to make it big.

Indian nationals account for the largest single ex-pat demographic in Dubai. Apart from a large number of Indian migrants, diversified cuisine and recreation choices, as well as cultural similarities, make this a win-win situation.