.jpg)
3 hours ago
2
With Dubai emerging as one of the world’s hottest real estate destinations, Indian investors are increasingly eyeing the emirate for portfolio diversification and wealth creation.
According to Ankit Jain, Executive Director & Head – Real Estate at Client Associate, the Liberalised Remittance Scheme (LRS) enables Indian buyers to systematically build a real estate portfolio worth up to $1 million (around AED 4–5 million) over a span of 4–5 years.
Speaking to Kshitij Anand of ETMarkets, Jain explains that affordable housing in Dubai offers steady rental yields of 7–8%, catering to the mass market, while luxury properties promise stronger capital appreciation and higher liquidity.
He adds that Dubai’s zero-tax regime, robust demand from global migrants, and easy liquidation make it the most balanced and lucrative international market for Indian investors today. Edited Excerpts –
Q) When investing in Dubai, what is the budget one must keep in mind for Indian investors? How does affordable housing differ from luxury housing in terms of returns and market dynamics?
A) The budget for Indian customers purchasing property under an individual name should factor in the Liberalised Remittance Scheme (LRS) limit of $250,000, which translates to approximately 900,000 to 1 million AED annually. Over a minimum span of 4 to 5 years, this gives buyers the eligibility to invest in properties valued up to 4 to 5 million AED.
Affordable housing typically offers lower capital gains and targets the mass market segment, but provides a steady rental return on investment (ROI) of 7 to 8 percent annually. In contrast, luxury housing enjoys higher demand in both primary and secondary markets, rewarding investors with substantial capital appreciation, handsome ROIs, and easier liquidity in the secondary market for future investment timelines.
Q) Apart from Dubai, are there other countries experiencing a renewed real estate boom where Indian investors and HNIs are actively deploying capital?
A) Dubai stands out as the most steady and highly demanded destination, offering a high-quality lifestyle that makes it particularly attractive and ensures easy liquidation for Indian investors.
The dollar pegged currency and ease of transaction procedures make the entire investment process seamless and hassle free for foreign buyers. The absence of language barriers, strong Indian community presence, and familiar business practices further reduce friction for first time overseas property buyers from India.
When compared to other major global cities, Dubai still offers relatively lower per square foot prices while demonstrating very positive upward potential, unlike many other emerging cities.
Markets like London, Singapore, and New York command significantly higher entry prices with potentially lower growth trajectories.
While destinations like Portugal and Greece offer citizenship by investment programs, they lack Dubai's tax advantages and rental yields.
Southeast Asian markets remain volatile with currency risks and unclear property rights for foreigners, making Dubai the most balanced choice for Indian investors seeking both security and returns in their overseas property portfolios.
Q) What key factors and economic drivers are fueling the sharp rise in Dubai's property prices over the past year?
A) The influx of people relocating their families and businesses, along with major headquarters of Fortune 100 companies moving to Dubai, represents a fundamental shift in global investment patterns. The zero tax environment, exceptional safety standards, and high rental yields are making Dubai the most lucrative and sought after destination for real estate investment worldwide.
The emirate's appeal is further enhanced by its Golden Visa program, which provides long term residency without cumbersome documentation requirements and features smooth online procedures for asset ownership.
Q) How have population growth, visa reforms, and the influx of remote workers and digital nomads contributed to renewed housing demand in Dubai?
A) As mentioned, the remarkable 100 percent population increase over the last three years, with projections remaining solid according to forecasted numbers, is creating robust housing demand from end users seeking to live and establish businesses while relocating from all parts of the world.
Different visa regimes, including flexible freelancer visas and an accommodating work environment, are making Dubai the destination of choice for startups, entrepreneurs, and corporate entities looking to relocate their operations.
Political instability and economic uncertainty in various parts of the world serve as additional catalysts, encouraging both individuals and organizations to move their bases to Dubai for superior living and working conditions, both personally and professionally.
Q) How sustainable is Dubai's current price rally, and are we observing signs of market overheating or are we witnessing structural consolidation that indicates long term stability?
A) The strong balance between demand and supply is maintaining price stability and market equilibrium. While a healthy correction might be expected under normal circumstances, the robust demand dynamics combined with supply meeting population forecasts, with 204 countries represented and HNIs from those nations actively investing, are keeping both sales volumes and prices intact.
A healthy correction, if it materializes, is not expected to fundamentally shake the market dynamics. This confidence stems from the fact that most properties, especially in the off plan segment, have been funded through cash purchases rather than mortgages. Being predominantly cash rich with minimal debt involvement, long term investors have little cause for concern about market volatility.
Q) Are more people buying or renting apartments in Dubai, and what does this ratio tell us about the market's maturity and investor sentiment?
A) This is indeed a highly debatable question and largely depends on the personal financial capacity and investment goals of each individual. The workforce segment, which may not have the financial means to make substantial down payments and maintain consistent monthly mortgage obligations, predominantly opts for rental accommodation.
However, the numbers clearly indicate that renters or tenants significantly outnumber investors or the total number of units sold with freehold ownership in Dubai.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
English (US)