7 Top Reasons Why Wealthy Indians are Investing in Dubai's Real Estate Market

Dubai's real estate market has emerged as a top choice for high-net-worth Indian investors. With appealing benefits like high rental yields, tax advantages, ease of doing business, and the prestigious Golden Visa, this city has positioned itself as a prime destination for real estate investment. 

Ghar.ae explore key factors fueling the 'Indian Investment in Dubai' trend.

1. Dubai's Golden Visa Appeal

One of the most attractive aspects of Dubai's real estate market is the Golden Visa. A renewable long-term residence visa is available to foreign property owners, offering the chance to live, work, or study in the UAE without the need for a sponsor. Eligibility requires ownership of property worth at least 2 million dirhams (approximately ₹4.5 crore), confirmed by the emirate’s land department. This Golden Visa acts as a significant incentive for Indian investors, allowing them to establish long-term residence in a thriving business hub.

2. Significant Increase in Indian Investments Abroad

Indian investors, particularly the wealthy, have been expanding their investment horizons. Under the Liberalized Remittance Scheme (LRS), a considerable surge in remittances for real estate has been observed. In FY24 alone, ₹3,173 crore was transferred abroad, marking a 17% rise from the previous year. Dubai has increasingly become a favored destination, with its lucrative real estate market offering higher returns and diversification compared to domestic options.

3. Reasons Behind Dubai's Attraction for Indian Investors

Dubai's proximity, world-class infrastructure, and luxurious lifestyle options are major draws for affluent Indians. Many wealthy families send their children abroad for education, adding to the appeal of owning property in a global city. Additionally, the business-friendly environment and top-tier amenities make Dubai a compelling option for combining investment with lifestyle upgrades.

4. Higher Rental Yields in Dubai

For investors focused on rental income, Dubai presents an excellent opportunity. Rental yields in the city typically range between 5% and 7%, significantly higher than those in major Indian cities. These stable returns, coupled with the city's appeal, make Dubai an attractive market for Indian investors seeking income-generating properties.

5. Ease of Buying Property in Dubai

The process of purchasing property in Dubai is straightforward, with minimal documentation required. A passport copy is typically sufficient to proceed, whether one is buying a ready-made or under-construction property. However, it’s important to note that loans are not easily available, meaning most transactions are cash-based. Investors seeking the Golden Visa will need to provide additional documentation, such as proof of property ownership and value.

6. Luxury Property Price Points

Luxury real estate in Dubai caters to a specific segment of Indian investors. The average luxury property is valued at approximately 4 million dirhams (roughly ₹9 crore). This price range appeals to affluent Indians who are looking not only for high returns but also for premium living spaces in one of the world’s most prestigious cities.

7. Beyond Investment: Access to Global Opportunities

For many Indian investors, owning property in Dubai goes beyond just financial returns. The city represents a gateway to global opportunities, whether for business expansion, lifestyle enhancement, or residency options. Dubai’s combination of luxury living and international connectivity makes it a strategic choice for wealthy individuals seeking more than just a real estate investment.

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