During the two waves of COVID-19, wealthy Indians picked up second homes in Dubai, largely due to its tax-friendly laws and the availability of immediate residence status through real estate investments, an international lifestyle and Indian economy. Not to mention the distance from. .
Bollywood actor Sanjay Dutt got the golden visa in May.
Dubai’s real estate market has been booming over the past five months due to an influx of foreign investors, of which Indians have pumped in 6 billion dirhams (Rs 12,100 crore), compared to 2.9 billion dirhams by UK investors and 1.4 billion by Chinese investors. Dirham, Mahmoud Alburai, senior adviser to the Dubai government, tweeted a few days ago.
These sand castles certainly don’t come cheap – luxurious apartments, villas and even hotel rooms can be set from Rs 2 crore to upwards of Rs 20 crore.
The city – only a short flight away from India – has attracted many Indian billionaires. The minimum amount to be invested in a property to obtain a residency visa is 1 million dirhams (Rs 2 crore). Experts said it is more economical than investing 500,000 euros (Rs 4.4 crore) in real estate to obtain residency visas in Portugal and Spain.
The increase in numbers is also due to the UAE’s Golden Visa programme, available to international investors and top talent, which grants them visas for up to 10 years. It is open to doctors, experts, scientists and inventors, as well as talented creative and sports individuals, and business, startup and real estate investors in the Emirates.
“Dubai’s real estate market has performed well during the pandemic and has attracted many Indian investors mainly due to the way the COVID-19 situation was handled by the government there. The investment of both NRIs residing in UAE and HNIs of India is around 6 billion dirhams in the last five months,” Akash Puri, Director International, India Sotheby’s International Realty told Moneycontrol. “There has been an increase in the number of people viewing the Dubai market in the month of April 2021. The Dubai property market saw over 4,800 sale transactions worth $3 billion in April, the highest value in the last four years.”
In April, about 60 per cent of sale transactions were for secondary or finished assets and 40 per cent for units yet to be completed. Puri said 1,934 under-construction properties worth $841 million and 2,898 finished properties worth $2.15 billion were sold in April.
Resident Indians are allowed to remit up to $250,000 (Rs 1.85 crore) abroad every financial year. Real estate investors are eligible for a three-year Dubai residency visa if they invest at least 10 million dirhams in a property and a five-year residency visa if they invest 5 million dirhams. Puri explained that the real estate investor visa includes permits for spouse and children.
The biggest sales were in Mohammed bin Rashid City, Dubailand, Jumeirah Lake Towers, Downtown Dubai, Arabian Ranch, Palm Jumeirah and Emirates Hills.
What’s on offer?
A one-bedroom ready-to-move-in property in a well-located luxury condominium can cost around Rs 3 crore. The villas are popular. Depending on the size and style, a 4-bedroom villa can cost over Rs 7 crore.
The payment terms are also simple. For under-construction properties, a buyer can pay 25 per cent to 40 per cent before handover and the balance on a post-handover payment plan of three years or more. Puri said the rental yield is attractive, varying from 4 per cent to 6 per cent for a quality property.
“More than ever, Indians are now eyeing properties in Dubai. Shazai Jacob, CEO-GCC, ANAROCK Property Consultants in Dubai said, Investing in real estate has emerged as the fastest way to obtain a residency permit in the UAE, and since 2017, Indians are among the top nationalities investing in property in Dubai. Ranked in.
He said that the real estate market of Dubai is on a great growth track since January 2021. From the vantage point of June 2021, each of the past few months has been breaking records with respect to real estate sales, he said.
Wealthy Indian home buyers have a wide variety of formats to choose from – pre-lease hotel rooms, one- and two-bedroom apartments, and villas. The cost of a pre-lease hotel room can range from Rs 70 lakh to Rs 3 crore.
According to PNC Menon, Chairman, Shobha Realty, there has been a lot of interest from Indian buyers in Dubai looking to invest in real estate in the UAE.
“During the pandemic, we have certainly seen an increase in demand from Indian buyers residing in the UAE as well as foreign investors, as the emirate is seen globally as a safe haven to live and work in. The recent reforms the government—be it the multiple visa program, lower interest rates and increased loan-to-value (LTV) ratios offered by financial institutions, along with the successful vaccine rollout, have ‘into the property market of Dubai’. has reached a record high. ‘ in Q1 2021,” he told Moneycontrol.
Responding to positive market sentiment, Sobha Realty launched the third phase of its customized villas project, which has been completely sold out and unveiled a 592-luxury apartment tower in its new waterfront district – which is home to its 8 million sq ft. Has both parts. Vikas, Sobha Heartland.
Apart from businessmen, banking and financial services professionals have shown interest in buying properties in the Gulf, said Ritesh Mehta, head of residential property sales at JLL.
“Indians prefer to invest in properties in Dubai due to the presence of attractive payment schemes,” he said. “The rental market is also well regulated and returns are anywhere between 8-9 percent per annum.”
The prices are currently low as there is an excessive supply of housing units in the market. He added that the additional stock was created keeping Expo 2020 in mind, but the event had to be rescheduled from October 2020 due to COVID-19.
HNIs from Dubai investing in India
The reverse trend is also true. As vaccination intensifies, overseas Indians in the UAE and GCC countries are investing in real estate. Uncertainty, geopolitical issues and the need for diaspora to have a ‘safe nest’ at home are driving this trend.
National Real Estate Development Council chairman Niranjan Hiranandani said some of the leading developers are offering time-bound, assured lease rental schemes to overseas Indians.
A Hiranandani Group company had built 23 Marina, the world’s tallest residential tower, in Dubai a few years ago.
“Since that project, we have not entered the Dubai real estate market,” Hiranandani said.