Is Now the Right Time for Indians To Invest in Dubai’s Luxury Real Estate Market?

For many years now, Indian investors have been attracted to Dubai’s property market due to world-class infrastructure, modern lifestyle, and attractive returns. However you must be wondering if it is the right time to invest in the luxury properties of Dubai. Let's take a look at the recent data, trends and opportunities that define this ever-changing luxury real estate market.

Dubai’s Real Estate Market in 2024

Dubai's property market has experienced a significant transformation in 2024. According to the sales market report by Bayut, a leading real estate platform, there were 169,000 houses sold which made the total value of residential and commercial real estate transactions AED 488 billion. It is not only because of the strength of the economy and favorable policies that this increase occurred, but it also proves that Dubai continues to attract attention worldwide.

Price Growth Across Segments

• Affordable properties: Prices increased by 55% year-on-year.
• Mid-tier segment: Price increased between 20% and 55%.
• Luxury segment: Price rose to 56%.

The strong demand and limited supply in the luxury segment are evident in its continuous increase.

Why Indian Investors Are Eyeing Dubai

1. Proximity and Connectivity

The fact that one can fly to Dubai in just three or four hours from most Indian cities has made it the perfect place for people who travel there often on business, and for tourists and expatriates.

2. Tax Advantages

In Dubai, there is no property tax, capital gains tax or inheritance tax. This makes it a better option than most Indian cities which impose high property taxes and stamp duties that reduce returns.

3. High Rental Yields

The luxury real estate sector in Dubai is known for having very high rental yields. According to the 2024 report by Bayut, luxury apartments yielded a return of up to 6.69% and luxury villas provided returns of up to 5.94%. These numbers far exceed what would normally be obtained from rental properties across Mumbai, Delhi and Bangalore.

Where Is the Action in Dubai’s Luxury Market?

Luxury Apartments

• Dubai Marina: The beautiful waterfront neighborhood tops the list of places where one can buy posh apartments as it offers breathtaking views, many recreational options and is well connected. This location provides for simple reach to JBR beach, Dubai Marina Walk and public transport for residents.

ROI: 6.69%

Average prices:

1-bedroom: AED 1.6 million (INR 3.7 Cr)

2-bedroom: AED 2.57 million (INR 6 Cr)

3-bedroom: AED 4.1 million (INR 9.5 Cr)

• Downtown Dubai: Downtown Dubai is the heart of the city, and it provides an energetic urban lifestyle that is close to famous buildings like Burj Khalifa and shopping centers like The Dubai Mall. This is ideal for people who want to have a sophisticated and connected living experience.

ROI: 6.10%

Average prices:

1-bedroom: AED 2.08 million (INR 4.8 Cr)

2-bedroom: AED 3.94 million (INR 9.2 Cr)

3-bedroom: AED 6.48 million (INR 15.1 Cr)

• Palm Jumeirah: The man-made island is famous for offering a luxurious lifestyle around private beaches and expensive hotels. This has made it a preference for people interested in exotic, upmarket homes that overlook the sea.

ROI: 5.62%

Average prices:

1-bedroom: AED 2.88 million (INR 6.7 Cr)

2-bedroom: AED 4.58 million (INR 10.6 Cr)

3-bedroom: AED 6.45 million (INR 15 Cr)

Luxury Villas

• Dubai Hills Estate: Families love this residential estate, which consists of large houses, parks, and top-quality facilities such as an eighteen-hole golf course. You can be well-connected but still have peace here.

ROI: 5.06%

Average prices:

4-bedroom: AED 6.52 million (INR 15.2 Cr)

5-bedroom: AED 12.34 million (INR 28.8 Cr)

6-bedroom: AED 35.52 million (INR 82.9 Cr)

• Arabian Ranches: People looking for a spacious suburban life will be attracted to Arabian Ranches as it has some of the best facilities which include big villas, an equestrian center, and a community clubhouse. It caters to people who want to live on the outskirts and have enough space.

ROI: 4.40%

Average prices:

4-bedroom: AED 7.47 million (INR 17.4 Cr)

5-bedroom: AED 11.78 million (INR 27.5 Cr)

6-bedroom: AED 17.16 million (INR 40 Cr)

• DAMAC Hills: The golf course views, different houses and top amenities make this neighborhood appealing. It provides the residents with recreational activities and a good quality of life.

ROI: 5.94%

Average prices:

4-bedroom: AED 3.90 million (INR 9.1 Cr)

5-bedroom: AED 8.22 million (INR 19.2 Cr)

6-bedroom: AED 10.90 million (INR 25.4 Cr)

Disclaimer: The mentioned prices and ROI may vary due to changing market conditions and other factors. Do your research and consult experienced professionals before making a decision.

Risks and Considerations

There is no fully safe real estate market. Even though the basics are still good and the prices have shot up, investors need to be careful:

• Do some investigations on developers and projects.
• Watch for changes in currency exchange rates between INR and AED.
• Think about inflation/deflation and other economic factors that might affect this investment.

Conclusion: Is Now the Right Time?

The Indian investors have a great opportunity in the Dubai luxury real estate market where they can get both high rent and increased property value. The moment is favorable due to the strong demand, pro-investor government regulations and comfortable life in the city, although it requires some reasonable research and taking into account long-term investment plans.

To sum up, this is the perfect time for Indian investors who are searching for secure, appreciating global properties to put their money in Dubai’s luxury sector. The window of opportunity remains open, but as with all investments, timing and careful selection are key to maximizing returns.

Frequently Asked Questions

Q1. Can Indian investors obtain residency visas by investing in Dubai luxury properties?

A: Indian investors can get a 2-year residency visa by buying property valued at a minimum of AED 750,000 (INR 1.75 Cr). Making investments over AED 2 million (INR 4.67 Cr) makes you eligible for a Golden Visa, which permits family sponsorship and provides for longer stays of up to 10 years in Dubai.

Q2. Are foreigners allowed full ownership of luxury properties in Dubai?

A: Non-citizens are allowed to purchase properties in specific freehold regions and have the total ownership entitlements that come with it. These may be passed on and sold or leased.

Q3. What financing options are available for expats buying luxury real estate in Dubai?

A: Expats can access mortgages from local and international banks, typically requiring a minimum monthly salary. Loan-to-value ratios are generally between 75% and 80%, with mortgage terms up to 25 years depending on age and eligibility.

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