Middle-Class Indian Couples Building Retirement Wealth in Dubai

In recent years, a noticeable trend has emerged: many middle-class Indian couples are opting for real estate investments in Dubai, finding the market to be a pathway towards financial freedom, unlike their counterparts back home. This growing phenomenon has sparked substantial conversations, especially on social media, illuminating the stark differences in property ownership experiences between Indians in Dubai and those in India.

A Perspective on Property Ownership

Abhishek Jamuar, a Bengaluru-based chartered accountant and startup founder, has been vocal about this distinction. In a post that resonated with many, he expressed an alarming truth about the disparity between property ownership in Dubai and India. “Sorry to say, but Dubai’s Indian buyers are smiling wider than India’s,” he declared. His sentiment underscores a widespread belief: while property ownership in India can often lead to financial stress, in Dubai, it represents a strategic move towards wealth accumulation.

Financial Dynamics: Dubai vs. India

One of the most compelling arguments made by Jamuar is centered on the financial landscape of property ownership. In Dubai, ordinary working-class couples who have diligently saved over a decade are able to purchase multiple properties. These savvy investors often buy two to three units, renting them out at impressive yields of 6–7%. They can also borrow at attractive rates of just 5%. This model not only provides immediate rental income but is also a sustainable way to build a retirement fund.

Conversely, life for middle-class couples in India often appears more daunting. Many typically purchase a single home, bearing the burden of high interest rates—averaging around 10%—with rental yields trailing behind at only about 3%. The result? A scenario where one person’s entire income may be absorbed by Equated Monthly Installments (EMIs). This transforms property ownership from an investment opportunity into a daunting financial burden, limiting future growth prospects.

The Structural Advantage

Jamuar doesn’t claim that Dubai’s real estate market is inherently superior; rather, he highlights a critical structural advantage. He believes that while property prices in India may appreciate faster, the overarching system and financial model in Dubai creates an environment of freedom rather than one of strain.

The lack of heavy EMI burdens allows for easier portfolio diversification. Couples in Dubai can invest in multiple properties without the suffocating stress that typically comes with high-interest loans. They can create a balanced financial strategy, making room for long-term wealth building without the constant worry about monthly repayments.

A Shift in Mindset

This emerging trend isn’t just about financial calculations; it’s indicative of a shift in mindset among middle-class Indian couples. Many are realizing that the traditional path of homeownership in India may not be the best way to secure a financially stable retirement. They are exploring international markets, notably Dubai, where favorable policies and better financial structures align with their aspirations for a more secure future.

Summarizing the Experience

The contrasting experiences of property ownership draw a clear line between two models of real estate investment. In Dubai, property ownership is cloaked in optimism and opportunity, allowing couples to bolster their financial futures. In India, however, it often feels like a race against an unyielding financial tide.

As more middle-class Indian couples choose to invest in Dubai, it’s essential to understand the underlying principles of these two markets. The freedom or burden associated with property ownership may well dictate the financial destinies of future generations—a realization that is slowly shaping a new narrative for Indian investors seeking prosperity beyond their borders.