Dubai’s real estate market is booming as wealthy Indians look for second homes.

Since 2017, Indians have been among the top three countries investing in real estate in the emirate.

Despite the Covid-19 pandemic, rich Indians continue to invest in homes in Dubai since the emirate ranks first as a dream destination.

Shajai Jacob, Chief Executive Officer (CEO), Gulf Cooperation Council (GCC), Anarock Property Consultants, a real estate firm, told that an increasing number of Indian entrepreneurs, including those from small and medium-sized businesses, and professionals are investing in second homes in Dubai.

“The quality of life in Dubai is far higher than in the cities they reside in India,” Jacob, who lives in Dubai, said. “It’s also incredibly well-connected to business locations all around the world,” he said.

According to Jacob, who travels frequently throughout India, Dubai provides yearly rental rates ranging from 6% to 10%, well above the benchmark returns in most developed countries.

“A $1 million investment can purchase much more real estate space in Dubai than in most other cosmopolitan cities,” he added, citing Mumbai, Shanghai, London, Singapore, and Monaco.

The Dubai real estate market is highly controlled, which is significant. “Investors are safeguarded by a tightly enforced Real Estate Regulation Authority (RERA), and developers are held accountable,” he stated.

“This market is considerably more transparent and compliance-oriented than any of its Indian equivalents. The tighter standards provide significant comfort to real estate investors,” he noted. Since the Covid-10 pandemic, supply has been tightly controlled, and an increase in demand will maintain property prices on the rise in the near future, according to Jacob.

According to him, more Indians are interested in purchasing property in Dubai than ever before. Investing in real estate has emerged as the quickest means to obtain a residence visa in the UAE, with Indians being among the top three nations investing in property in Dubai since 2017.

In 2019, Indians accounted for 16% of total house sales in Dubai, investing more than Dh8 billion in the industry. Since the contagion hit last year, interest in Dubai real estate has skyrocketed.

The first quarter (Q1) of the current fiscal year, which runs from January to March, saw a 15% increase in the number of real estate transactions when compared to the same time in 2019.

“Indians, who are high net worth people (HNIs), have shown varying preferences while searching for houses in Dubai since the pandemic,” Jacob explained.

“For some, the grandeur and exclusivity that they are accustomed to in India is a key consideration, and these purchasers will undoubtedly go towards Palm Jumeirah, Marina, and Downtown. However, the majority of respondents have shown a preference for the best available alternatives. If all the trappings and accessories are in place, the budget is not a constraint.”

Indians seeking only a return on investment (RoI) are interested in high-profile areas such as Jumeirah Village Circle, Jumeirah Lake Towers, Meydan, and Dubai Hills Estate.

“These places provide extremely satisfying returns on investment, and the starting price is also quite appealing,” he added.