New Delhi: The Allure of Dubai’s Real Estate for Indian Buyers This Festive Season
As the golden hues of the festive season approach, Dubai real estate developers and brokerage firms are strategically targeting Indian buyers, particularly those from tier-1 and tier-2 cities. With rising property prices in major Indian metros, many investors are increasingly considering alternatives abroad.
Rising Property Prices in India
Over the past few years, property prices in India have skyrocketed, especially in bustling metro cities like Mumbai, the National Capital Region (NCR), and Bengaluru. As noted by Rizwan Sajan, founder and chairman of the Danube Group, the substantial costs involved, including stamp duty and registration fees, have prompted buyers to look at overseas options. “High property prices, coupled with additional transaction costs, have convinced many buyers to explore alternatives abroad,” Sajan commented, emphasizing Dubai’s comparatively affordable pricing and transparent regulations.
Attractive Payment Plans
One of the most appealing aspects of Dubai’s real estate market is the flexible payment plans that developers offer. Danube Group, for instance, has introduced a remarkable 1% monthly payment scheme that allows buyers to step into property ownership without burdening themselves with hefty loans or mortgages. This year, they have also rolled out a special 0.5% payment plan for Diwali, making it even more attractive for mid-segment investors.
“Such financing options ease the investment process significantly, allowing buyers to consider international real estate without overwhelming upfront costs,” Sajan further explained. Moreover, Dubai’s residential properties boast impressive rental yields, with an average of around 9% annually—far outstripping returns typically seen in Indian markets.
Festival Time: An Investor’s Opportunity
The festive season has historically been a meaningful time for major purchases among Indians, a sentiment that resonates strongly in the realm of real estate investment in the UAE. Ankur Aggarwal, founder of BNW Developments, points out that Indian nationals are increasingly dominating the foreign buyer statistics, accounting for nearly a quarter of property transactions this year. The months of Navratri and Diwali, in particular, spur a rise in inquiries and bookings as families seek auspicious opportunities for significant investments.
The Allure of Off-Plan Projects
Recent trends indicate a marked interest in off-plan projects, which represent over half of Dubai’s total property sales. Buyers prefer these options as they can secure their units while benefiting from staggered payment plans. Such arrangements not only make buying more manageable but also offer a form of financial security as investments mature.
A Shift in Buyer Demographics
As the investment landscape matures, the profiles of Indian buyers are also changing. Ritu Kant Ojha, a Dubai-based realtor, notes a shift from traditional buyers—primarily affluent older individuals from Delhi or Mumbai—to a younger demographic that includes tech founders and professionals from cities like Bangalore and Pune. These new investors are more inclined towards properties that promise rental yields, motivated by the high returns that the Dubai market offers compared to their home cities.
Developer competition continues to intensify, leading to significant incentives such as waiving the 4% Dubai Land Department (DLD) fee to attract buyers. The festive period serves as a lucrative backdrop for such investments, driven largely by the pursuit of yield.
The Broader Appeal of Dubai
Beyond attractive financial prospects, buyers are increasingly drawn to the lifestyle and infrastructure that Dubai offers. The city’s commitment to safety, advanced amenities, and vibrant lifestyle options play a crucial role in drawing Indian investors. Additionally, long-term residency options, such as the Golden Visa for investments exceeding AED 2 million, enhance the appeal, positioning Dubai as not just an investment destination but also a prospective home for many.
Indian Buyers’ Dominance in Dubai
The statistics speak for themselves: nearly 50% of real estate transactions in prime markets around Dubai are conducted by Indian buyers. This growing interest is prompting increased activity in property expos, where Dubai-based developers and brokerage firms showcase their offerings to attract potential clients.
In summary, the combination of rising property prices in India, flexible financing options in Dubai, significant returns on investments, and appealing lifestyles creates a perfect storm for Indian buyers this festive season. The dynamic nature of the market promises an exciting opportunity for those looking to invest in international real estate.
