Why Are Indians Among the Top Investors in Dubai's Property Market?

Dubai is well known for its booming real estate market, with property investment providing a steady income stream. But even more surprising is that Indians are among the top foreign investors in Dubai's property market.

In this article, we'll look at what makes Dubai an attractive investment option for Indian nationals and explore the reasons behind their success stories in the emirate.

Strategic Location

The city of Dubai has a strategic location that is both central to the MENA region and has excellent global connectivity. This makes it an ideal place for Indian investors looking to diversify their portfolios or expand their business operations.

In addition, Dubai offers a stable and favourable investment climate, with a number of tax and regulatory incentives that make it an attractive destination for foreign investors. The city is also home to a large expatriate population, many of whom are from India, which provides a ready market for rental properties.

Friendly Government policies

The government policies in Dubai are very investor friendly, which is one of the key reasons why Indians are keen on investing in the city's property market. Dubai has no income tax, and the emirate offers a wide range of residency visas, making it an attractive destination for Indian investors. The UAE government also provides a number of incentives for foreign investors, such as 50-year property ownership visas and 100% foreign ownership of businesses. These factors make Dubai an appealing investment destination for Indian investors.

High investment and rental yields

Investors from India are some of the most active in Dubai's property market, and for a good reason. Property values in the city have been on the rise in recent years, and rental yields are among the highest in the world.

Indian investors are attracted to Dubai for many reasons, including its stable political environment, strong economy, and proximity to India. In addition, Dubai offers a wide range of investment opportunities, from luxury apartments in Dubai to affordable housing.

Dubai's rental yield rates are among the world's highest, making it an attractive destination for Indian investors looking to generate income from their investments. The average rental yield in Dubai is 7%, compared to 3% in Mumbai and 2% in Delhi.

With property values expected to continue rising in Dubai throughout the year, Indian investors are well-positioned to benefit from the city's booming real estate market.

CEPA

CEPA is the acronym for the Comprehensive Economic Partnership Agreement between India and the UAE. The agreement was signed in August 2020 and came into effect on 1st January 2021. It is a preferential trade agreement that seeks to liberalise and facilitate trade between the two countries.

The CEPA covers merchandise trade, services, investments, Intellectual Property Rights (IPR), competition policy, and other areas of economic cooperation. The agreement has helped expand bilateral trade and contribute to the economic growth of both countries.

The agreement also provides preferential treatment to Indian products in the UAE market and vice versa. It would also offer opportunities for Indian service providers in the UAE market. The CEPA has thus created a conducive environment for investments from both countries.

Conclusion

Dubai is the world’s most vibrant, diverse, and lucrative property market. Indians are among its top investors due to a number of factors, including the availability of attractive investments, favourable tax regulations, and incentives offered by Dubai-based firms. 

We hope this article has provided insight into why Indians make up such a large portion of Dubai's property market. With ever-increasing investment opportunities in this dynamic city, now could be the perfect time to consider investing yourself! 

We suggest you start your journey by investing in residential projects in Dubai that are undertaken by brands with proven records of delivering quality, like Shapoorji Properties, to ensure that you’re parking your investment for a sure shot at success.