Dubai’s real estate market has emerged as the new investment destination for super-rich Indians.
India’s ultra-wealthy are making a beeline for investing in Dubai’s real estate market. According to the latest statistics, Indian investors invested over AED 35 billion in property transactions in Dubai last year. HNWIs (i.e., high-net-worth individuals) looking to diversify their portfolios are drawn to Dubai due to the city’s –
- economic stability
- political initiatives & reforms
- lifestyle factors
Dubai’s ‘zero tax’ environment remains one of the chief attractions. In stark contrast to many other global investment hubs, Dubai imposes no personal income tax, capital gains tax, or property tax (except for a 5% VAT). This allows investors to maximize ROI, with rental yields ranging between 5% and 7%, significantly outdoing major Indian cities.
The introduction of the Golden Visa Program is a top draw for affluent Indians, as it offers 10-year renewable residency visas to individuals investing in properties valued over AED 2 million (i.e., approximately USD 545,000). The visa lets investors and their families live, work, and study in the UAE without a local sponsor.
Some significant reasons that attract Indian entrepreneurs and business magnates to invest in Dubai are —
- Dubai’s strategic location on the world map
- top-notch infrastructure
- proximity to India
- status as a global business hub
- the latest amendment to the UAE’s Commercial Companies Law, granting 100% foreign ownership of onshore companies in most sectors
Dubai’s luxury property market has witnessed a 35% YoY increase in transaction volume in 2024. Popular areas among Indian investors include the following —
- Downtown Dubai
- Dubai Marina
- Palm Jumeirah
Compared to other global cities, Dubai offers affordable investment options. Prime residential properties in Dubai average $750/sq. ft., a fraction of the cost in cities like Hong Kong ($3,970/sq. ft.), New York ($2,560/sq. ft.), or London ($1,920/sq. ft.). This affordability, along with high rental yields and potential for capital appreciation, tilt the scales in favor of Dubai among market-savvy investors.
Initiatives like the Dubai Economic Agenda D33 make the city’s realty market a top choice for India’s ultra-rich. Interest in Dubai’s real estate market continues to grow, making it the ultimate investment destination for Indian investors seeking financial returns and a slice of the good life.
