Indians dethrone British to become Dubai's largest real estate investors
Agencies | Dubai
The Daily Tribune – www.newsofbahrain.com
Indians have become the largest real estate investors in the Dubai property market, playing a pivotal role in shaping the city's real estate market. The Economic Times reports that Indians emerged as the top buyers in the June–September quarter, removing the British from the top spot in the buyers' list. This list includes buyers of new homes in Dubai, either for residential purposes or seeking better yields. The market is dominated by shopping malls and premium brands.
Indians have traditionally been featured in the top five on the real estate buyers list. However, Russians have slipped out of the top three buyers' lists for the first time in six quarters due to the weakening rouble. “Whether driven by end-user demand or investors seeking higher yields, Indians have been instrumental in new home purchases. Russians dropped out of the top three buyers for the first time in 18 months, with the declining ruble weighing on affordability,” said Richard Waind, CEO of Betterhomes, a Dubai-based property consulting firm.
Dubai, a popular destination for wealthy investors, has become a hotspot for buying real estate due to its tax efficiency and high returns. One of the features of Dubai that has attracted Indians and other nationalities is the Golden Visa. It offers investors and their families an automatic five-year residency in Dubai that can be stretched up to 10 years if the real estate one invests in exceeds AED 2 million. Mr. Waind acknowledged that the drop in Russian buyers compensated for rising demand from Indian and British nationals, who often use the property investment clause as a pathway to the Golden Visa.
Dubai's real estate market has seen a surge in property prices and rentals, with luxury home prices rising nearly 50% in the year ending June 2023, a 225% increase since the pandemic's lows in the third quarter of 2020. In the third quarter, 28,249 transactions were recorded, a 4% increase from the second quarter and 23% higher than the previous year. The highest growth was seen in villa and townhouse transactions (34%).
Dubai is experiencing a surge in premium properties, mirroring the Indian real estate market. The city's population has grown by nearly 100,000 in the year to July, and it is expected to attract 4,500 millionaires in 2023. Turkey has dropped from the top 10, possibly due to its economic situation. Buyers are increasingly from Egypt, Lebanon, Jordan, and the UAE, as well as the Middle East and North Africa region.