Did you know: Top investors in Dubai real estate are Indians!
According to official figures released by the Dubai Land Department (DLD) recently, Indians were the largest single ethnicity of investors into the Dubai real estate market over the last year, as well as making the largest contribution in terms of investment value(1).
Not only did the total number of Indian investors – 5.246 – exceed even Emiratis, who were a close second at 5,172, they brought in a whopping Dh10.89 billion in investment value – comfortably topping the Dh8.1 billion by Emiratis. Other nationalities that featured in the upper ranks, according to the DLD’s figures, were 2,198 Saudis, Chinese investors, and 2,808 from the UK. Incidentally, Chinese investment, which has become a major factor in several of the world’s prominent property markets, came in at a relatively paltry one-third of the Indian holdings. All told, this points to a special relationship between the Dubai property sector, and investors of Indian origin.
Transparency, security of investment and high returns are the attraction
So what is driving this significant and robust influx of Indian investment into the Dubai real estate market? In part, of course, the presence of a lucrative and highly regarded property market, in close physical proximity to the country of their origin, comes into play. Ties between the two nations are extremely cordial and on a firm footing, and the presence of a large expatriate Indian community makes the notion of Dubai as a ‘second home’ very intuitive. But beyond these factors, the Dubai real estate market is also bolstered by the several initiatives undertaken by both the administration and the local developer community.
The government of Dubai has taken several proactive steps, in recent years, to make the Emirate an attractive destination for international real estate investors. In September 2019, Dubai created a higher committee for real estate, under the stewardship of Sheikh Maktoum bin Mohammed to address issues surrounding imbalance between supply and demand, in local real estate(2). Recent legal enhancements in the powers bestowed on Dubai’s Real Estate Regulatory Agency (RERA), have added to the security of investments(3). And innovations, such as property investment linked visas(4), have further incentivized international investors.
Dubai’s dynamic developer community has also introduced several variations in investment paths and terms, within which interested investors can find their preferred option. From extended post-handover payment plans, to rent-to-own schemes and paying costs associated with regulatory fees, Dubai’s developers have worked hard to ease the path to ownership, for prospective investors. And these advantages are in addition to the high rental yields, and other ROI related advantages, that the market inherently offers, in comparison to other high profile real estate markets around the globe.
A relationship with a positive past and an even brighter future
From cultural affinities and long established ties, to compelling positives that just make sense, Indian investors have a lot of reasons to continue to act on their preference for Dubai properties. With further incentives, like retiree visas and Dubai’s progressive people-centric policies, adding to an already rosy picture, this is a relationship that will continue to flourish, well into the future.