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Dubai realty market booms, as wealthy Indians choose their second homes

Despite the pandemic, affluent people continue investing in Dubai’s real estate because it tops as a dream destination while the wealthy list is led by Indians. A growing number of Indian entrepreneurs are choosing their second homes in Dubai according to Gulf Cooperation Council and Anarock Property Consultants. It says “The quality of life in Dubai is superior to most of the cities of India” could be the biggest factor affecting the movement.

Shajai Jacob, CEO at GCC adds “Also Dubai’s location is well connected to global business destinations”.

Dubai’s properties offer annual rental yields as high as 6-10% which is pretty higher than most developed economies’ benchmark returns.

According to Shajai Jacob, “One million dollar can buy noticeably bigger real estate space in Dubai than world’s other metropolitan cities like London, Hongkong, NewYork, Mumbai and Monaco” he admits.

Moreover, Dubai property market is well planned and regulated; whereas developers are accountable to, and buyers are protected by, a strictly instigated RERA (Real Estate Regulation Authority. The stricter forms make investors safe and far more confident in their investing decisions therefore compliance oriented markets like Dubai is highly attractive to Indian buyers.

The supply has been adjusted since the pandemic, its increased demand will property prices high or upwards in the near future, Jacob emphasizes. Indians are looking for more real estate in volume more than ever.

Since 2017 India has been in the top three buyer nationalities in Dubai due to the real estate investment has emerged as the quickest way to get a residency document in the UAE. As per 2019, 16 per cent of the total volume in Dubai property sales was done by Indians weighing more than AED 8M.

The 2021 Q1 of this financial year, precisely between January to March, Dubai reported 15.5 per cent hike rate as compared to renowned period in 2019.

India’s high profile individuals showed huge fondness in Dubai’s luxurious homes especially since the pandemic got struck. These buyers have been eyeing for Palm Jumeirah, Downtown and Dubai Marina and it’s been shown record sales this years first quarter. Buyers’ attitude or preferences are not constraint on any budget, though looking for best possible options if it allows all accoutrements in place.

Other marquee locations are as followed by Dubai Hills Estate, Meydan and Jumeirah Village Circle as the locations give highly satisfactory ROIs and the investor prices are attractive that it encourages experienced patrons to buy multiple units at the same time.

People’s buying preference on the type of properties depend on the form of their families themselves. Newly married couples show interest in apartments in the primary areas, while larger families are opting for townhouses or villas in more quiet areas.   

We all witness Dubai’s property market has been on a progression track since the beginning of this year.

Each of last few consecutive months until vantage point of June 21’ has been stellar record sales with respect properties market.

Dubai has seen 3,000 real estate transactions worth AED 7 billion in January 2021, which is  a hike by 15 per cent in values and 37 per cent in sales volume compared to 2020.  March was another huge success in 16 months with 4,644 transactions. April saw more transactions that is 4,832 translates to the highest sales happened since March 2017, notes Jacob.

The total sales volume for the quarter selling Dubai homes reached as high as AED 21 B progressing further growth of 5 per cent compared to 2019’s data.  

“A huge part of the sales year by year is driven by Indians,” Mr Jacob adds.

Covid crisis has reformed the way how companies and schools operate and it consequently raised families’ necessity to gather larger homes.  

Many residences and homeowners in UAE are now seeking for upgrade from their initial 2-3 bedroom apartments to more spacious 3 bedrooms or larger square feet villas; while three and a half bedrooms, kitchen and hall (4BHK) are on demand due to its capacity for more flexible living added.   

Besides sales demand, the short term rental homes business is booming with service apartments, because of huge influx of travelers and business professionals finding their homes for a month or even shorter period of time, staying in the city running their businesses.

Jacob mentions short term rental is booming and will maintain its progression in the coming months because of the Expo anticipation and few sporting events to be held in Dubai. Also several multinational events and business related meetings are on the way, ultimately, Dubai is the hub for global events this year.

The emirates rulers and its authorities are operating and soothing all the possible ways to ensure the city is perpetually attractive for speculators. Fast distribution of vaccines and tourism availability with the businesses running like normal are all pushing to approach the pre-pandemic levels.  

In addition, there are few changes have been made to company ownership and individual visa laws in Dubai.

Dubai presently allows 100 per cent ownership of businesses regardless of a local sponsorship and 3, 5 and 10 years of visa programs are being biggest attractions to the aspirant investors who are willing to reside in UAE.