What Dubai’s real estate holds for Indian investors
Dubaihasalwaysbeenanattractive real estate investment destination for Indians, but the intensity of interest hasincreasedconsiderably overthepastfewyears. Asperlatest data released bythe Dubai Land Department, the quantum of real estate investments by Indian has reached ₹42,000 croreinthelast18months alone - almost 40% higher than what it was in 2014. Today, Indians are the largest foreign investors in Dubairealestatebyacomfortable margin.
While there are various reasons for such a high interest, the key attractions are as follows:
As per historical data, Indians can reap approximately 8–10% tax free returns by investing in the Dubai real estate market - without a doubt, extremely attractive capital appreciation and definitely much better than whattheycancurrentlyexpectin many cities in India.
Ease of investing
AsperthecurrentRBInorms, an Indian can remit as much as $250,000 per annum to Dubai (or any other country) which effec- tively meansthatwithinjusttwo years, an individual (just one year for a couple which clubs their remittances)$500,000 canbe invested in Dubai- enoughtobuy aqualitypropertythere. Further, the distance between India and Dubaiis short andthefrequency of flights is abundant, further adding to Dubai’s viability and attractiveness as a property investment destination.
Transparencyplaysapivotalrole in real estate investments, especially wheninvestinginaforeign country. To illustrate, foreign investments into Indian real estate surged immediately after the announcementofRERA. The Dubairealestatemarkethasconsistently beenhighlytransparent in all aspects, making it very attractive for Indian investors.
Lower budget requirement
Compared to Tier 1 Indian cities like MumbaiandDelhi, aninvestor needs to shell out far less for investing into theDubaiproperty market.
Asperrecentreports, theaveragepropertypricepersquarefoot in the central parts of Dubai is approx. ₹25,000, which is sizably lower than what one would have to invest in Central Delhi or Mumbai. In other words, investors with less-than-spectacular budgets have the opportunity to invest in a highly lucrative market.
In the past few years, the Indian stock markets have delivered high returns to investors. With every rise the risk of fall increases, which causes investors to book profits earned in equities andinvest theminother lucrative asset classes.
Real estate, being an asset class which can absorb a sizable corpus, becomes a preferred choice – be it in Indian real estate or other lucrative options like Dubai.
In addition to the above, the issues that investors in Indian real estate have faced in the past decadeintermsofdelaysindevelopment, lack of exit options and high ticket sizes havealsoplayed keyrolesinthisoutboundinvestments.
If this scenario does not change or changes too slowly for the sensibilities of serious real estate investors, Indian investments into the Dubai real estate market will continue to grow.
An investor needs to shell out far less for investing in the Dubai property market