Dubai is the new stockpile region for Indian investors, and it’s not just metropolitan investors now! Investors from smaller towns like Indore, Bhilai, Ranchi, Pune, Nasik, and Lucknow are participating in Dubai’s booming real estate sector. But why are more and more investors looking to invest in Dubai? Let’s see:
1. Rising Property Prices in India
Expensive Real Estate
Indian metropolitan cities like Mumbai, Delhi, and Gurugram have seen skyrocketing prices in property values. In luxury developments in areas like Bandra and Juhu in Mumbai, prices can be from Rs 35,000 to Rs 55,000 per sq ft, sometimes even more. You can see how ordinary middle-class or even upper-middle-class investors can find it almost impossible to buy luxury properties.
Affordable Luxury
In comparison, however, Dubai prices luxury properties at an average of AED 1,000 per sq. ft. (approximately Rs 22,500). This makes it much more affordable to invest in luxury apartments or villas in Dubai instead of trying to own premium real estate in Indian metropolitan areas.
Better Quality of Life
In addition to high-quality construction and world-class infrastructure, investing in Dubai also offers better amenities that can include smart homes, security systems, residents’ community pools, gyms, and many more luxurious amenities. It’s easy to see how people can start reconsidering their focus on getting into higher-end buying possibilities for real estate.
Higher Investment Potential
Although the value of real estate in India has been slow to rise, the market in Dubai has continued to move upwards. With initiatives by the government like the Dubai 2040 Urban Master Plan, appreciation in property values are projected for years to come.
2. Tax-Free Advantages
No Income Tax
In India, income tax rates can reach as much as 30%. However, in Dubai, there is absolutely no personal income tax meaning investors can maintain 100% of their rental income which provides for much higher returns on investment versus properties in India.
No Property Tax
While property tax is deducted each year in India and can heavily impact income earning potential, there is no property tax in Dubai. This allows investors to lower ownership costs long term.
No Capital Gains Tax
Investors selling property in India would have to deal with capital gains tax, which reduces profits. Investors in Dubai have no capital gains tax. This means investors can fully enjoy the returns on their real estate investments.
Higher Disposable Income
Because no considerable taxes exist in Dubai on property ownership, rental income or capital gains, investors enjoy more disposable income. Not only does this improve cash flow but it also allows for reinvestment into more properties.
3. Improved Rental Returns
Better Rental Yields
In India, rental yields range from three to five percent a year, which makes investing less attractive. Dubai provides yields of seven to eleven percent, which is significantly better for investors that want consistent passive income.
Increasing Expat Population
Several factors contribute to a steady demand for rental properties in Dubai, especially in prime areas such as Downtown Dubai, Dubai Marina (JBR) and Jumeirah Village Circle. One such factor is the expat community in Dubai which makes up about 85% of its population.
Strong Short Term Rental Market
Investors with properties in popular areas of Dubai can earn a significant amount more from short-term rental properties due to the country’s rapid growth in tourism. Platforms such as Airbnb have also provided opportunities for property owners to take advantage of the consumers in the short-term rental market, which continues to grow for both business and leisure.
Rental Security & Regulated Rental Market
Another attractive factor for investing in UAE property is the stability provided by the Real Estate Regulatory Agency (RERA). Regulations in place for both operators and landlords provide strength of investments so that renters have recourse in case of an issue. These risks are mitigated, which provides a steady income in rental income in a strong regulatory environment.
Bonus: Golden Visa Perks
Long-Term Residency
By investing AED 2 million (around Rs 4.5 crore) in property in Dubai, Indian investors qualify for the UAE Global Visa. This visa provides benefits of residency for 10 years.
Family Sponsorship
With the Golden Visa, investors can sponsor their immediate family, with children and spouse included to make a stable family presence in Dubai.
No Minimum Stay Requirement
As opposed to many residency programs, the Dubai Golden Visa has no minimum stay requirement. This makes it possible for an investor to base in Dubai while conducting their business in India.
Business & Employment Opportunities
A Golden Visa allows a holder to develop their business in Dubai, take advantage of the tax-free business environment and pursue employment opportunities without restrictions.
Conclusion
Whether you are looking for a second home, a profitable investment, or a place to grow your business, Dubai has you covered. Dubai has more luxury property that is more reasonable, benefits of no local taxes and higher rental yields make it an opportunity that can not be replicated. So, why not explore this opportunity further? Dubai is not just somewhere to invest: Dubai is a place for you to live, work and thrive!