Firstly, let’s start by saying that it’s widely known now that the real estate market in numerous countries worldwide offers extremely profitable investment prospects, with a great deal of offers and options. There’s more to it, though, as the ones that are buying property abroad are often led by the aspiration of obtaining the citizenship of the host country. The simple answer to why Indians buying property in Dubai is so prevalent is the fact that property in India has become tremendously expensive.

Let us try and paint a picture for you on how much more expensive a property in India is when compared to a property abroad. For instance, buying a huge residential villa in France can be cheaper than buying an apartment in New Delhi or Mumbai. That’s the kind of difference that makes Indians opt for properties abroad.

Also, as the interest rates for bank loans are becoming a stumbling obstacle (and are expected to rise even further), buying a property in London, New York, France or Dubai can avail of the considerably lower interest rates of local banks in those countries.

And that’s not all! In some cases, foreign property markets seem to be more transparent than the Indian market. So, those who invest into buying a property overseas can get “clean” deals far easier and quicker.

Why do Indians choose Dubai to buy property?

We’ve established the basic overview of why Indians buying property in Dubai is so common.  Now, it’s time to dig deeper into why they choose Dubai as their destination of choice for an overseas property investment.

According to some surveys, Indians have topped the list of Dubai’s most active property buyers. Starting with the geographic point of view, the reason why they choose Dubai is pretty clear. Also, there is a quite large non-resident Indian population in the region. Therefore, those are the two main factors that may explain why so many Indians are buying property in Dubai.

Dubai, in fact, ranks ahead of many other real estate investment locations and is positioned right next to London, that has been known as the go-to investment destination. Not so long ago, Dubai was not at the top of the list of the most desired investment locations (it was seventh on the list), according to the surveys.

In a period of less than forty years, Dubai has altered from a local trading community into one of the hottest and most-wanted locations in the whole world.

This new demand from foreign buyers seeking to invest into Dubai’s properties can be read as a sign of increasing interest into its improving real estate market.

As a result of recent economic changes in India and the lack of incentivised benefits for investment, mainly present in the real estate sector, Indian investors are actively searching for other, alternate ways to attain higher returns on investments from other avenues. That said, it’s pretty clear why they are focusing on investing in Dubai’s properties.

In their search for an appropriate location to invest in, Dubai looks like a great overseas property investment proposition to Indians, as it offers a unique and multicultural environment, and a quality of life and work that can’t even be compared to the rest of the Middle East. Exactly this kind of environment is what drives Indians into investing in Dubai.

Not only are Indians buying property in Dubai, but they are the leading foreign investors as they make almost 25 percent of foreign investment in Dubai’s real estate market. Indians surpassed other investors such as Pakistani, British, Chinese and Canadian investors, having purchased Dh26.8 billion worth of properties in Dubai in the first half of 2017.

What are the pros of choosing Dubai to buy property?

Despite demonetisation and cash pressures, there has been an incredible 12 percent growth in the number of Indians travelling to Dubai. And, as a result of the recent developments, the repercussions have lowered sales in the Indian real estate sector significantly. Furthermore, post demonetisation in November 2016, Indian investors who wish to invest in second homes and/or convert their old money to new money have a scarce number of options to achieve higher returns in India.

On the contrary, in Dubai, Indian investors can benefit from tax-free returns of eight to ten percent and sound capital appreciation as the dirham is pegged to the US dollar and cannot be affected by currency fluctuations.

Moreover, as per the Reserve Bank of India’s ‘liberated remittance scheme’, an Indian investor can transfer $250,000 legally per year. Hence, a couple can send an incredible amount of $500,000 every year, which is an amount that is more than enough to buy a great property in Dubai.

Registering a property in Dubai is far easier than in India. What’s more, an investor is entitled to a residence visa after investing 1 million dirham in Dubai.

Let’s talk about the prices now. As said earlier, property prices in India are extremely high. As opposed to that, property prices in Dubai are far more affordable. For instance, a property in Dubai’s city centre has a starting price of Dh1,480 per sqft, which is almost half the price per sqft for a property in a prime location in the city of Mumbai.

Additionally, apartments in Dubai are sold in terms of carpet area, whilst in India they are sold as built-up. And that’s not all! In Dubai, car park is given for free, whereas in India it is charged separately. Lastly, while in India properties usually come base-build (shell and core), in Dubai most apartments come with fitting and fixtures.

The final numbers and conclusions on Indians buying property in Dubai

According to statistics compiled by the Dubai Land Department (DLD), Indian nationals, who form the largest foreign investor group in Dubai’s real estate, bought properties worth Dh83.65 billion in the last 5 years – from 2013 to 2017.

Also, according to the Dubai Land Department, they invested approximately Dh15.6 billion in Dubai’s real estate in 2017, Dh12 billion in 2016 and Dh20 billion in 2015 – their highest in the year.

Therefore, Dubai has proven to be the go-to location for Indian investors in the past few years. Its secure and steady economic growth, great infrastructure and ease of access to the rest of the world make it a logical international hub.

In conclusion, economical prices, better returns, great offers and more scope for profit are just some of the advantages Dubai offers to Indian investors, trying to escape from the sluggish domestic market. So, when you really think about it, Indians buying real estate in Dubai are getting a fantastic deal and much higher value for money. Hence, they are certainly going to benefit from these investments as Dubai continues to grow towards becoming an absolute haven in terms of real estate investment.

Right now, you can purchase a tiny 99 square meter land plot in Mumbai for one million US dollars or a 162 square meter land parcel in Dubai for that same amount. The choice seems pretty obvious, right? And this, it seems, is the reason why Indians buying property in Dubai in such large numbers has become so common.