Dubai’s real estate market has grown the most since January 2021.
More than ever, Indians are now taking care of property in Dubai. Investing in real estate has become the fastest way to get a residence permit in the United Arab Emirates, and since 2017 Indians have been ranked in the top 3 national countries for investing in real estate in Dubai.
“In 2019, Indians accounted for 16% of Dubai’s home sales, which contributed more than AED8 billion to the sector. Says Shajay Jacob, Managing Director and Country Manager – ApnaComplex and CEO – GCC, Anarok.
The total value of Dubai home sales in this quarter reached AED21 billion, a growth of 5% from the first quarter of 2019. Most of these increases are for Indians.
The place where Indians invest in Dubai
Indian HNIs have shown different priorities when looking for shelters in Dubai since the onset of the epidemic. For some, the luxury and uniqueness they use in India is a major factor, and these shoppers are inevitably drawn to the Palm Jumeirah, the Marina and the downtown.
“Most preferred the best options available. Budget is not a barrier if all the attributes and parts are in place. On the other hand, investors looking for ROI are looking for places like Jumeirah Village Circle, Jumeirah Lake Towers, Maiden and Dubai Hills Estate. These places provide a very satisfactory return on investment and the entry price is very attractive, ”explains Jacob.
Another variation on demand is based on home typography, and mainly on apartments or villas. Family structure plays a big role – newly married couples prefer to stay in apartments, large families prefer independent villas.
Demand for larger homes has increased as epidemiological offices and schools have rediscovered how they work. Existing owners in Dubai are now switching from standard 3 bedroom homes to more spacious 3.5 bhk offerings, which offers extra flexibility.
The economic dynamics behind Dubai’s real estate boom
The real estate sector in Dubai contributes greatly to the country’s GDP and is a reliable indicator of the country’s overall economic situation. In 2019, real estate accounted for 7.2% of Dubai’s GDP. This contribution is 8% for the first quarter of 2020 – the largest contribution to the record since the first quarter of 2017.
“The Dubai real estate market has been on a meteoric growth trajectory since January 2021. From the June 2021 perspective, each of the last few months has been a record for real estate sales. March 2021 saw 4,643 transactions, the highest in 16 months, and April saw 4,832 transactions, making March 2017 the best month for property sales in Dubai, ”said Jacob.
Government-sponsored global city
In many ways, the real attraction of Dubai is the way it operates. Its leadership and the performance of the UAE government has always attracted investors to the city.
Driven again by tourism and rapid vaccine delivery, business operations in Dubai are rapidly approaching pre-epidemic levels. 74% of eligible people have been successfully vaccinated and it looks like the 100% vaccination target will be met by the end of 2021.
The government has given significant impetus by making major changes in business ownership laws and visa laws. Dubai now allows 100% business ownership without the need for a local partner. The Golden Visa program has been a real magnet for UAE residency applicants.
With these changes, Dubai is once again opening its doors to the world, ensuring the health and safety of all who live and work there.
Dubai offers a rental yield of 6-10%, which is unheard of in many mature markets. More real estate space can be bought in Dubai for US $ 1 million than other cosmopolitan cities like Mumbai, Shanghai, London, Singapore and Monaco.
In addition, the Dubai real estate market is highly regulated. Investors are protected by a strictly enforced real estate regulatory authority, and developers are held accountable. It is currently a more transparent and compliant market than its Indian counterparts, which offers considerable comfort to real estate investors.
As supply is tightly controlled from the plague, increased demand will keep home prices on an upward trajectory in the near future.
All roads lead to Dubai
“For Indians, Dubai has always been a dream destination. The quality of life in this world-class city is comparable to that of its major global counterparts.
For this reason, many Indians consider Dubai as their second home. The similarities of cultures and cuisines enhance the overall appeal. For Indians, Dubai offers an unparalleled way of life – at the gateway to India.
Get live stock quotes for BSE, NSE, US market and latest net asset value, mutual fund portfolio, calculate your tax using the latest IPO news, best IPOs, income tax calculator, find the best winners, best losers and best stock funds on the market Like, follow us on Twitter.
The Financial Express is now in the telegram. Click here to join our channel and stay up to date with the latest news and updates from Business.