For many years now, Indian investors have been attracted to Dubai’s property market due to its world-class infrastructure, modern lifestyle, and attractive returns. However, you might be wondering if it is the right time to invest in the luxury properties of Dubai. Let’s take a look at the recent data, trends, and opportunities that define this ever-changing luxury real estate market.
Dubai’s Real Estate Market in 2024
Dubai’s property market has undergone a significant transformation in 2024. According to the sales market report by Bayut, a leading real estate platform, there were 169,000 houses sold, totaling the value of residential and commercial real estate transactions at AED 488 billion. This growth is not only due to the strength of the economy and favorable policies but also shows that Dubai continues to attract attention worldwide.
Price Growth Across Segments
- Affordable properties: Prices increased by 55% year-on-year.
- Mid-tier segment: Prices rose between 20% and 55%.
- Luxury segment: Prices surged by 56%.
The strong demand coupled with limited supply in the luxury segment has driven these continuous price increases.
Why Indian Investors Are Eyeing Dubai
1. Proximity and Connectivity
The fact that one can fly to Dubai in just three or four hours from most Indian cities makes it an attractive destination for frequent business travelers, tourists, and expatriates.
2. Tax Advantages
Dubai boasts no property tax, capital gains tax, or inheritance tax, making it a more appealing option than most Indian cities, which often impose high property taxes and stamp duties that reduce returns.
3. High Rental Yields
The luxury real estate sector in Dubai is known for offering impressive rental yields. According to Bayut’s 2024 report, luxury apartments yielded returns of up to 6.69%, while luxury villas provided returns of up to 5.94%. These figures far exceed typical rental returns in cities like Mumbai, Delhi, and Bangalore.
Where Is the Action in Dubai’s Luxury Market?
Luxury Apartments
- Dubai Marina: This stunning waterfront neighborhood ranks high for posh apartments, offering breathtaking views, numerous recreational options, and excellent connectivity. Residents can easily access JBR Beach, Dubai Marina Walk, and public transport.
ROI: 6.69%
Average prices:
1-bedroom: AED 1.6 million (INR 3.7 Cr)
2-bedroom: AED 2.57 million (INR 6 Cr)
3-bedroom: AED 4.1 million (INR 9.5 Cr)
- Downtown Dubai: As the city’s vibrant heart, Downtown Dubai offers an energetic urban lifestyle, close to iconic structures like Burj Khalifa and The Dubai Mall, ideal for those seeking a sophisticated living experience.
ROI: 6.10%
Average prices:
1-bedroom: AED 2.08 million (INR 4.8 Cr)
2-bedroom: AED 3.94 million (INR 9.2 Cr)
3-bedroom: AED 6.48 million (INR 15.1 Cr)
- Palm Jumeirah: Known for its luxury lifestyle around private beaches and high-end hotels, this man-made island is a top choice for buyers interested in exotic, upmarket homes with waterfront views.
ROI: 5.62%
Average prices:
1-bedroom: AED 2.88 million (INR 6.7 Cr)
2-bedroom: AED 4.58 million (INR 10.6 Cr)
3-bedroom: AED 6.45 million (INR 15 Cr)
Luxury Villas
- Dubai Hills Estate: A family favorite, this residential estate features spacious homes, parks, and high-quality amenities, including an 18-hole golf course, offering a peaceful yet connected living environment.
ROI: 5.06%
Average prices:
4-bedroom: AED 6.52 million (INR 15.2 Cr)
5-bedroom: AED 12.34 million (INR 28.8 Cr)
6-bedroom: AED 35.52 million (INR 82.9 Cr)
- Arabian Ranches: Ideal for those wanting a spacious suburban lifestyle, Arabian Ranches boasts extensive facilities, including luxuriously large villas, an equestrian center, and a community clubhouse.
ROI: 4.40%
Average prices:
4-bedroom: AED 7.47 million (INR 17.4 Cr)
5-bedroom: AED 11.78 million (INR 27.5 Cr)
6-bedroom: AED 17.16 million (INR 40 Cr)
- DAMAC Hills: Offering appealing golf course views, various house types, and top-notch amenities, this neighborhood promotes a high quality of life with plenty of recreational activities.
ROI: 5.94%
Average prices:
4-bedroom: AED 3.90 million (INR 9.1 Cr)
5-bedroom: AED 8.22 million (INR 19.2 Cr)
6-bedroom: AED 10.90 million (INR 25.4 Cr)
Disclaimer: The mentioned prices and ROI may vary due to changing market conditions and other factors. Do your research and consult experienced professionals before making a decision.
Risks and Considerations
No real estate market is devoid of risks. Even with solid fundamentals and rising prices, investors should proceed with caution:
- Conduct thorough research on developers and their projects.
- Monitor currency exchange rates between INR and AED.
- Consider inflation/deflation and other economic factors that may impact this investment.
Frequently Asked Questions
Q1. Can Indian investors obtain residency visas by investing in Dubai luxury properties?
A: Indian investors can secure a 2-year residency visa by purchasing property worth a minimum of AED 750,000 (INR 1.75 Cr). Investments exceeding AED 2 million (INR 4.67 Cr) make one eligible for a Golden Visa, allowing family sponsorship and extended stays of up to 10 years in Dubai.
Q2. Are foreigners allowed full ownership of luxury properties in Dubai?
A: Non-citizens can buy properties in designated freehold areas, benefiting from full ownership rights, which can be passed on, sold, or leased.
Q3. What financing options are available for expats buying luxury real estate in Dubai?
A: Expats can apply for mortgages from local and international banks, typically needing a minimum monthly salary. Loan-to-value ratios usually range from 75% to 80%, with terms extending up to 25 years depending on eligibility.
