By Anmoll D Shroff
The festive season is typically synonymous with a significant increase in property purchases in India, with an average spike of 20-30 per cent being observed in recent years. This impetus can be attributed to multifactorial reasons – festive discounts and financial incentives offered by developers, a more competitive market and pricing, and favourable interest rates. Buyers’ keenness to invest in property during the festive high is also steeped in tradition and the emotional appeal of new beginnings, making their purchases especially memorable. In the last few years, we have observed many such buyers shifting their lens to Dubai. Indians have consistently been listed among the top five nationalities of homebuyers in Dubai. And, as per recent data published in the Better homes Residential Market Report, Indian buyers have overtaken their British counterparts to emerge as the largest real estate investors in Dubai’s flourishing property market. This uptick is especially evident in the increase in the amounts of money being sent abroad by Indians under the Liberalised Remittance Scheme – as per data released by the Reserve Bank of India, a record-breaking USD 27.4 billion was sent abroad in April 2023-January 2024, a significant increase over the USD 27.1 billion recorded in FY23. There are several reasons why Indians are increasingly looking to Dubai’s real estate sector when it comes to investing in property. The most pertinent of these are as follows:
An appetite for growth
Dubai’s government has been making significant and aggressive strides towards attracting foreign direct investment (FDI), which include offering investors long-term resident visas and permitting 100 per cent FDI in certain sectors. This investor-friendly ecosystem is further complemented by the country’s transparent disclosure regulatory environment, making Dubai a trusted destination for cautious and savvy investors. Dubai’s rental market is typically quite lucrative for property owners, given that the rental yields are higher than most other global cities and because the likelihood of capital gains is also quite high. With Dubai continuously working to expand both its infrastructure and city limits, we foresee that buyers can continue to expect excellent returns on their real estate investments. Dubai’s economy is witnessing a growth curve, driven by key sectors including tourism, real estate, trade and logistics, which is further propelling interest in both commercial and residential properties.
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