With Bollywood stars Shah Rukh Khan and Sanjay Dutt, and billionaire Mukesh Ambani among a long list of investors coming from India, Dubai’s real estate market continues to enjoy a surge in interest from the subcontinent.
With Bollywood stars Shah Rukh Khan and Sanjay Dutt, and billionaire Mukesh Ambani among a long list of investors coming from India, Dubai’s real estate market continues to enjoy a surge in interest from the subcontinent.
Indian investors have been a driving force in the growth of Dubai’s real estate market. Last year, Indians accounted for 40 percent of all home purchases, with total investments almost doubling since 2021. This strong presence is fueled by a host of favorable conditions, from Dubai’s strategic location and political stability to its thriving economy and tax benefits.
The interest from Indian investors in Dubai’s real estate market is not a new phenomenon. Data from the Dubai Land Department shows that Indians have been among the top three nationalities buying properties in Dubai since 2004, having purchased real estate worth AED 83.62 billion from 2015 to 2021 alone.
And it will only get better from here. According to Deloitte’s ninth annual Real Estate Predictions report, pent-up demand from travelers and increased spending by residents led the post-pandemic recovery of Dubai’s real estate sector in Dubai. The average sales prices for residential property in Dubai increased by approximately 10 percent between Q3 2021 and Q3 2022. Average rents also increased by approximately 21 percent over the same period, and office rents have recovered to pre-pandemic levels, registering an increase of 12 percent at the end of 2022 over the same period in the previous year.
These numbers are only set to attract even more savvy Indian investors. But what are the underlying factors that have made Dubai an attractive destination for Indian real estate investors?
While the city is known for its glitz and glamour, Dubai is much more than just a global tourist hotspot. Its strategic location, political stability, vibrant economy, and world-class infrastructure have positioned the emirate as a preferred destination for foreign investments, particularly in the real estate sector.
For Indian investors, these attributes, combined with lucrative tax incentives and a strong cultural connection, have made Dubai an irresistible choice for property investment. Here’s a closer look at why Dubai is such a magnet for Indian property investors:
Set at the junction of Asia, Europe, and Africa, Dubai is a strategic hub for international trade. This unique location offers several advantages for Indian property investors seeking to broaden their market reach. Dubai’s strategic location as a central hub for international trade and commerce provides Indian investors with easy access to global markets and enables them to expand their business networks.
The political climate in Dubai is steady and the government is pro-business, offering a safe haven for Indian investors to invest and grow their business in confidence. The government is known for its continuous efforts to attract and support foreign investments.
The economy of Dubai, bolstered by its oil industry, has been on the rise, registering a 4.6 percent year-on-year growth in the first nine months of 2022 to AED307. 5 billion. This economic growth has opened a wide array of investment opportunities, attracting Indian investors keen on tapping into the emirate’s huge economic potential.
Dubai boasts world-class infrastructure, characterized by modern architecture, state-of-the-art transportation systems, and top-notch facilities. The city is known for its iconic landmarks such as the Burj Khalifa and Palm Jumeirah island, extensive road networks, efficient public transportation, advanced telecommunications, and world-renowned airports. This well-developed infrastructure enhances the overall quality of life and attracts businesses, investors, and tourists from around the globe.
Dubai’s tax incentives make it an attractive destination for Indian property investors. The absence of income tax, corporate tax, and capital gains tax allows investors to maximise their investment returns, providing a competitive advantage for Indian investors.
As a famed tourist hotspot, Dubai’s rapidly growing tourism industry further fuels the demand for real estate, presenting lucrative investment opportunities for Indian investors.
The presence of a large Indian expatriate community in Dubai fosters cultural connections and creates a supportive environment for Indian investors. This helps Indian investors to immediately feel at home as they set foot in Dubai, while giving them instant, easy access to business networking opportunities. This shared cultural connection enhances the overall investment experience.
The surge of interest from Indian investors in Dubai’s real estate market is a testament to the emirate’s strong appeal and potential for growth. With a strategic location, political stability, vibrant economy, world-class infrastructure, and attractive tax incentives, Dubai will continue to be a magnet for Indian property investors looking to be a part of the city’s remarkable growth story.
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