Why investing in Dubai makes perfect sense for Indians
Anjum Bhat khaleejtimes
Filed on November 22, 2016
Buying a property in Dubai is much easier and straight forward than buying a property in India
Dubai’s diversified economy attracts investors from more than 150 countries as the options for investment are enormous for individual and institutional investors. Dubai’s real estate sector has seen extensive growth over the years and among all nationalities, Indians are reported to be the major shareholders of foreign investment in residential and commercial real estate.
According to reports, Indians invested nearly Dh7 billion in Dubai real estate in the first half of the year. Indians form the majority of the expat population in the UAE and are the most prominent expat community, owning small to large businesses and holding key positions in large companies.
The Indian impact can be seen by visiting areas such as Karama and Bur Dubai where Indians have created a home away from home. The newly-opened Bollywood theme park in Dubai is a mark of the age-old bonding between the two countries. Being in close proximity to India is one of the main reasons behind the Indian influx to the UAE looking for opportunities in career, trade and business. This quick access from India to the UAE brings many Indian businessmen to buy property in Dubai as investing in a city that is only a short flight away makes complete sense.
Ease of buying
Buying a property in Dubai is much easier and straight forward than buying a property in India as there is no or minimum paperwork involved. The process is straightforward that keeps you clear on what’s happening and how quickly it’ll be done. This sound too good to an Indian who is used to the intricate buying process back home that will leave you exhausted. Transparent laws of owning and renting a property make it simple to manage a single or a portfolio of properties while paying no taxes on rental income.
India is the second-largest country in terms of population. The simple economics of supply and demand keeps property prices upwards, with the population always on an increase, thus keeping demand elevated than supply. Property prices in major cities in India are much more expensive than in Dubai and even after paying a higher price, you’ll have to compromise on facilities, amenities, safety and connectivity with other areas. Interest rates on property mortgages in Dubai are less than half compared to India. This gives the mid- and high-income earning Indian expat an opportunity to become a home owner.
Dubai offers high rental yields compared to other major cities around the world. This makes it a strong reason for Indians to buy property in Dubai and have a second income from rents while the property keeps appreciating in value. Investing in off-plan property can bring significant financial gains once the property is completed. This is known to Indian property buyers and investors and they have used it well in the last few years.
For Indian nationals, buying off-plan property in Dubai is more attractive as the new developments lie within the heart of the city. In India, buying off-plan means looking at developments far from the cities as there is no scope of new development within city limits. These projects mostly don’t follow delivery timeframes. Dubai has a number of new developments under way and these projects are expected to add more power to Dubai’s tourism industry and increase demand for residential units.
A promise of growth
Dubai is a land of opportunities and the growth it has witnessed is remarkable. With the continued growth comes a promise of benefits that Indians have realised over the years. Factors including Expo 2020, continued growth of the tourism and other sectors, continued influx of people and the forward-thinking economy is what investors are looking to prop up demand for commercial and residential property and keep the market prolific for medium- and long-term investments.
The fact that the UAE is the most politically stable country in the region and enjoys the status of a ‘safe haven’ will keep investments flowing in, and Indians will love to continue being on top of the list.