Are you a novice investor?
If this is going to be your first hand experience, then here you will find the robust reasons for investment in Dubai to grab lucrative property that offers better ROI, impressive rental yield and premium lifestyle. In fact, the past investors have experienced an impressive jump in their investment so this creates a ray of hope for the new users and strengthen their capital flow. After all, Indian real estate investors have been multiplying their investment, and now you can be the next one.
DATA, FACTS AND REASONS THAT TURNING DUBAI AS A PROFITABLE HUB
And to support that here we are going to unveil the factors or reasons that make Dubai a favourite second home destination. But before we go forward, it is important to mention the long-term relationship of Dubai & India which is considered to the oldest and successful bond formed before UAE in 1971 where the trading is one of the main pillars ($100 billion trade is recorded in 2020), now the partnership is highly visible in the real estate sector too where the number of transactions are soaring.
Let us get into the reasons that make Dubai a haven for Indian real estate investor:-
1. In Close proximity
The proximity of Dubai matters a lot where to Indians it takes ideally 03 Hours 40 minutes time and this is comparatively approachable and accessible anytime be it night or day. And when you have better access to your investment, then one can have better hold on their investment, so when it comes to real estate investment you can look after in a meticulous way while staying in your own country.
In addition to this, Dubai is considered as the second home destination where it creates a leeway for the users to be a part of ultra luxury home where Dubai creates friendly relationship with Indian.
Now with the travelling perks, let us move to the new government reforms that allures the Indian investors.
2. Ease of investment with new government reforms
To create a sustainable economy in the long term needs a proper flow of foreign investments and skilled labour, and to improve the intervention of direct investment the government has taken robust steps which eventually creates a pathway between the Dubai & India and after completing standard criteria investors can be a part of any property that holds better potential.
NEW REFORMS BY GOVERNMENT
- Introduced easy visa
- Less paper work
- Ensures 100% ownership
- Minimum investment of AED 1 Million with 3 years validity
- AED 10 million with 10 years of residency
- 100% safe investment
- Robust support from the government
So this ensures ease and safety to the investors or home buyers where they can strengthen their investment by getting 100% ownership and ease access to the visa. Further will serve you the number of sales transactions and list of best selling projects to get sincere information on the Dubai Real Estate Market
3. Jump in Sales
With these ease and more government aid the Dubai residential market reached 5,538 transactions in February, 2022 which is escalated about 58% from a year earlier. And the data also showcases that apartments take the leads among all because they come into different sizes that fulfills every type of budget, and then for high living experience apartments are the cream of the crop.
PROPERTY TYPE |
SALES % |
Apartments |
53% |
Villas |
26% |
Plots |
20% |
Commercial |
2% |
So this clears the picture to the home buyers and investors which type of property is fruitful for them and apart from apartments- villas, plots and commercial are optional where if it fits into your budget and needs, then you can take the best out of the property.
Further we will list down the areas that have performed well in 2022 on the bases of their demand.
TOP 5 AREAS IN DUBAI FOR INVESTMENT & BETTER LIFESTYLE
- Business Bay
- Downtown Dubai
- Dubai Marina
- DAMAC Lagoons
- Jumeirah Village Circle
These are the top areas which are high in demand as it presents the wide range of properties from lower to higher price range, and other than this, there communities are well planned and executed with social infrastructure to get easy access to school, hospital, clinic, gym, spa, salon, restaurants, metro and more which works as everyday fills.
Now further to understand it more we list down the sales transactions and property price below.
SOME MORE DATA DRIVEN BY DUBAIPROPERTIES-AE.COM
TYPE |
GROWTH |
YEAR |
PROPERTY PRICE |
Apartments |
61% |
2022 |
? 47.6% |
Villas |
3.1% |
2022 |
? 16.1% |
Commercial |
35.2% |
2022 |
? 5.6% |
Plots |
45.6% |
2022 |
? 22.7% |
So the above table showcases the growth in every segment and even the property price got a good jump apart from villas which dropped by 16.1%, so from investment point of view drop in property opens a gateway for the buyers where they can buy property without going out of budget.
And these progressive transactions create a better scope for the upcoming home buyers and investors who are seeking secured investment, and in 2022 Dubai records 25,972 property deals (worth $15.11 billion) in the first quarter of 2022 and further the figure will take a jump.
Last and important have a look at the top projects of 2022 which were the best among all both in ready to move and off plan.
Let us get into more details and list down the best selling projects in 2022 with sales:-
- The St. Regis residences, Downtown, off plan apartments (Value AED 961.2 M)
- DAMAC City, off plan apartments (Value AED 353 M)
- Arabian Ranches III- Bliss 2, off plan villas (Value AED 120.2 M)
- Rukan 3, off plan villas (Value AED 38.7 M)
- Mbl Residence, ready to move (Value AED 86.3 M)
- The Pulse Boulevard Apartments, ready to move (Value AED 38 M)
With this it is important to know that off plan projects have more sales volume and sales value than the ready property, so if you are next make the wise choice in Dubai.
4. Tax Free Regime
So apart from the next level lifestyle, the reality that makes the right connection is being a tax free city where there is no income tax on the income generated here. So as far as the investment is concerned, there is no property tax on homes as well as no income or inheritance tax.
However, when the property changes hand 4 per cent transfer tax is imposed, and the fee is divided between both the seller & buyer. Also, the owner and tenants are expected to pay a municipality tax which comes out to be 5% of their home’s annual rental income and this is to fund the local services for better growth and stability for all.
5. Security
Now its robust security ambience and government safety norms is pulling an international investors- be it property investment it provides 100 per cent ownership, and even for business, Dubai brings friendly and easy rules to set up any business with the better conversion of your business.
And other than this, from a living point of view, Dubai is ranked 3rd safest city for females and with low crime rates it ensures 200% security and safety where the home buyers can expect a fret free stay and ensure safety to their families, and there are scenarios where the parents have to fly for work and other families members are alone, so living in such safest city will be a lifestyle time advantages.
SAFETY IS AN UNCOMPROMISED ASPECT OF LIFE!
6. Tourism Magnet
It is so obvious to say that Dubai is the highly visited destination in the world for the reasons that it holds better attractions, economical and easy to explore with no hassle around. And to support this some valuable facts to be addressed below:-
- 979.7K visitors in Jan 2022
- Jan & March 2022 with 214% growth year on year
- Dubai ranked no. 1 globally in hotel occupancy
- 134% area to be increased for hotel & tourist
So these facts make Dubai an obvious attraction and data present tourists come to explore the state of the art buildings, experience beaches & sand, fine dining, ultra luxury living experience, shop all top brands in Dubai Mall and lots more to complete the overall experience of Dubai. And Indians are the top tourist in Dubai for the above mentioned reasons- it is close to India and takes about 4 hours (maximum) and is economical for any Indian traveller.
7. Indian Diaspora
To relate this more, the above data that states Indian often travelers in Dubai where they see they make the majority of the city’s population that further gives confidence to others where they can be part of it anytime by investing in Dubai Properties and you will be glad to know that 40% of Indians have shown their interest in Dubai real estate because of the better living and work culture in Dubai.
SOME MAJOR FACTORS SHOWING THE EASE OF LIVING FOR INDIANS IN DUBAI:-
- Presence of the Indian lifestyle
- No cultural shock
- Easy to up down
- Best Indian cuisines
- Support of other Indians
- Access to everything for better livability
- No language barrier
- Easy to start a business
- Access to freehold property
8. Lucrative Yields
In Dubai, the rent remains the stronger side as it is the top tourist destination where the heaps of visitors come for a stay and better business opportunities alluring the people from different cities, so this needs more accommodation where the rental is the most secured way to multiply the investment.
From 12 months to April 2022 the average rents have pushed by 16.2% and the average rent of apartment and villas got an increase by 15.1% and 23.5%, in fact, some Dubai apartments rents have boosted by up to 25%.
AREAS WITH HIGHER RENT RATE
AFFORDABLE AREAS WITH HIGHER RENT RATE
- Deira
- Dubai Sportys City
- Jumeirah
But out of all Dubai Marina saw 25% increase in rentals in the first quarter compared to same period last year.
FINAL THOUGHT
So these 8 factors make Dubai an obvious investment destination for the Indian real estate investors where they can expect better ROI, premium properties, high rental yield, adapt modern lifestyle and more because Dubai is just your second home destination which is easy to commute in about 3 to 4 hours, so this way they can safeguard the property anytime, and then Dubai is considered as the sustainable urban mobility and smart city where everything is based on the new technology, so managing your property would be the easiest thing and also an advantage where without physical presence you can achieve your target from your investment.
Compared to the most metropolises in the world where it offers an appreciation of 2-3%, Dubai is the chain breaker where they bring 7-8% rental return per annum. And this is much higher than the similar properties in metropolitan cities in India.
So putting everything together Dubai ensure you high ROI and better conversion of your investment because Dubai will never fail to garner the attention of the visitors and where there are mammoth of travelers that takes an edge automatically.
FAQ (TO CREATE MORE CLARITY)
Q1- Can an Indian invest in Dubai?
Yes, they can invest in Dubai anytime and can but a freehold property with 100% ownership.
Q2- What is a good ROI in real estate Dubai?
The annual return over investment in Dubai is calculated between 5% and 8.4% and this is because it offers the lucrative rental rates in the world.
Q3- Is it safe to invest in Dubai?
As mentioned in the blog, Dubai is the safest city in the world and it is the 3rd safest city for woman, so where people are safe and secured, investment’s safety comes automatically.
Q4- Which is the best type of property in Dubai?
For investment 1 bed apartment is considered as the best choice because they are higher in demand than other typology.
Q5- Where can I find affordable properties in Dubai?
At Dubaiproperties you can find the best range of projects which are within your budget.
Q6- Which are the best areas for investment with high rental?
As per the data there are top 4 areas that promise impressive rent and best for personal use as well-Dubai Marina, Jumeirah Breach Residence, Jumeirah Lake Towers and Palm Jumeirah.
Q7- Will I get a visa if I buy a property in Dubai?
100 per cent you are eligible if you make an investment of above AED 750,000.
Q8- How can I stay in Dubai permanently?
By meeting the requirement and renewing your 2-3 years temporary residency permit, but at present only those who are born of a biological father with UAE citizenship can grab the passport.
Q9- Is it easy for Indians to reside in Dubai?
Yes it is easy because Indians make a majority of the city’s population where the lifestyle, language, food and travelling are much similar and adjustable for any Indian.
Q10- Why Indian Real Estate Investors are returning to Dubai?
There are prime reasons that are stealing the attention of the Indian Real Estate Investors and now they are seeking to invest for better ROI. Vital reasons- Lucrative Yields, Indian Diaspora, security, jump in Sales, in Close proximity, ease of investment with new government reforms and more reasons making it obvious to invest in Dubai for international investment.