Dubai has emerged as a favourite real estate destination abroad for Indians as they rank among the top three nationalities investing in property in Dubai. According to a report by property consultant ANAROCK, the first quarter (Q1) of 2020 saw a 15% growth in the number of real estate transactions compared to the same quarter in 2019.
“The total sales value of Dubai homes for the quarter touched 21 billion AED, registering a growth of 5% over Q1 2019. A large part of this was driven by Indians. In 2019, Indians contributed 16% of the housing sales in Dubai sales by volume – pushing in more than 8 billion AED into the sector,” says Shajai Jacob, MD & Country Head – ApnaComplex & CEO – GCC, ANAROCK.
However, the demand-and-supply-gap is expected to keep the prices on the higher trajectory.
“With supply being highly regulated since the pandemic, the increase in demand will keep property prices on the upward trajectory for the foreseeable future,” pointed out Jacob.
The pandemic has shifted the preference towards bigger houses as offices and schools are functioning from home. “Existing homeowners in Dubai are now regularly upgrading from standard 3-bedroom homes to more spacious 3.5BHK offerings which provide added flexibility. Another demand variant is in terms of housing typology, and largely involves either apartments or villas. Family structure plays a big role – newly-married couples prefer to stay in apartments while larger families prefer independent villas,” the ANAROCK report noted.
Indians used to “grandeur and exclusivity” for whom budget is not a constraint are moving to Palm Jumeirah, Marina and Downtown. Investors looking at return on investment (ROI) are going for locations such as Jumeirah Village Circle, Jumeirah Lake Towers, Meydan and Dubai Hills Estate. “These locations offer very satisfactory returns on investments and the entry price is also very attractive,” points out Jacob.
Dubai has become a second home for Indians. There are four reasons for the same:
— Higher rental yields: The Dubai real estate market offersrental yields of 6-10 per cent. “This is unheard of even in many mature markets. 1 million USD can buy significantly more real estate space in Dubai than in most other cosmopolitan cities like Mumbai, Shanghai, London, Singapore, and Monaco,” Jacob says.
— Highly regulated: The market is highly regulated making it far more transparent and compliance-oriented market than any of its Indian counterparts, giving considerable comfort to real estate investors.
— Just about 3 hours away: Dubai is just about 3.5 hours’ flight from Mumbai, making travel to and from Dubai extremely convenient. Besides the quality of lifestyle is at par with any other global counterparts.
— Cuisine: Indians love their food. “The similarities of cultures and cuisines add to the overall attractiveness. For Indians, Dubai offers an unmatched global lifestyle – literally at India’s doorstep,” says Jacob.
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