Competitive pricing and favorable tax structure are major draws for Indians looking to invest in Dubai’s realty market.
Are you looking to invest in Dubai to leverage the realty boom and get maximum ROI, or has its favorable tax structure drawn your attention? Or maybe the rising real estate prices in India make you wonder about the lucrative property deals offered in Dubai? If you resonate with any of these reasons, chances are that you are indeed considering Dubai as your next investment destination.
Property developers in Dubai are flooded with inquiries from Indian investors primarily residing in not only Delhi and Mumbai but also Tier 2 and 3 cities. The prices of apartments and villas in metropolitan cities like Delhi and Mumbai can cost INR 5 crores and above. Interestingly, the average property price in Dubai falls in the same price bracket. Moreover, Dubai’s registered transactions and sales volume continue to show double-digit growth.
As real estate prices in Mumbai and Delhi NCR are now on par with those of several global cities like Dubai, several Indian investors are looking at options in these locations. Among global investors, nearly 50% of buyers seeking new properties are Indians, and approximately 70% belong to Tier 2 and 3 cities.
Properties valued at INR 50 lakhs (nearly three decades ago) now bear a price tag of over INR 25 crores. Last year, Dubai recorded over 120,000 off-plan and ready-to-move-in residential transactions, totaling more than AED 259 billion. The registered transactions grew by —
- 43% YoY
- 34% YoY in sales value
Dubai’s average registered transaction sale value is presently AED 2 million; in other words, it is nearly INR 5 crore.
Dubai’s investor-friendly tax structure (i.e., zero capital gains tax and income tax) attracts Indian investors. India’s tax regime, including capital gains tax and various property-related levies, deter potential investors.
Real estate fairs, showcasing new and luxurious as well as affordable options, are a major draw in Indian cities where investors can take their pick from several new projects and various price brackets. Grabbing a share of the real estate pie in Dubai is finding favor with most investors, opening up new horizons when it comes to investment opportunities
