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Several factors like a stable market, competitive prices, security and hassle-free financial regulations have attributed to Dubai emerging as the new realty hub for Indian investors.
Increasing number of Indians are investing in Dubai real estate market as it offers lucrative returns, stability in the environment and hassle-free financial regulations.
While Indian developers are yet to venture into the Dubai market, many consumers have invested in the most populous city in the United Arab Emirates (UAE).
According to a recent study, in the first half of 2015, there was an investment hotspot of almost US$2 billion from India.
The Reserve Bank of India (RBI) has set a limit of US$50,000 (approximately Rs 33 lakh) for an Indian investing overseas.
This means that Indians are only able to buy properties in Dubai via EMIs since an average apartment costs around Rs 3-4 crore in the Middle Eastern city.
A stable real estate market has also meant that there is a low risk of volatility, unlike the Indian market, which has encouraged Indians to come forward and become the most popular foreign investor in Dubai.
A classic example is the 160-storey skyscraper, Burj Khalifa, the world’s tallest building located in Dubai, where most of the apartments are owned by Indians, even more than the locals, reports reveal.
On why the business capital of the Middle East has emerged as a popular locality among Indian investors, property expert Ravi Garg, Modern Realty, Mumbai, says, “There is a familiarity with Dubai.
There are so many Indians working there. Their culture is not too different from India. People feel that they are investing in an environment they already know of.”
Garg also says that unlike in India, the realty market of Dubai is largely stable with a year-on-year (y-o-y) rise of 7-10 per cent.
While most of Old Dubai is facing a space crunch, with several areas declared as heritage sites, localities such as Downtown Dubai and Dubai Marina in New Dubai are particularly popular with Indian investors.
One must also note that prices in Dubai are competitive when you compare them to some of the expensive realty markets of India.
When you consider some of the poshest localities in Mumbai and compare them with corresponding areas in Dubai, the City of Gold will offer you prices that are about 10-20 per cent more competitive.
The hassle-free and transparent financial laws of Dubai, coupled with high security, make sure that there are no obvious downsides to investing there, and thus the trend has been very popular.
While Indian investments in Dubai are on the rise, Garg leaves us with a parting shot, adding that sooner or later, the bubble will burst. But till then Indians are happy putting their money where their heart is.
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