Bengaluru: Indians have become the largest real estate investors in the Dubai property market, playing a pivotal role in shaping the city's real estate market.
The Betterhomes Residential Market Report showed Indians topping the nationalities list in the June and September quarters - up from No. 2 in the first quarter when Britishers led the field - in the purchase of new homes for end-user demand or investors seeking better yields and Golden Visa eligibility. Indians have consistently been among the top five homebuyers in Dubai. However, rising wealth and factors such as Russia's geopolitical isolation have rearranged the pecking order.
"Whether driven by end-user demand or investors seeking higher yields, Indians have been instrumental in new home purchases," said Richard Waind, CEO of Betterhomes, a Dubai-based property consultanting firm. "Russians dropped out of the top three buyers for the first time in 18 months, with the declining ruble weighing on affordability."
"However, this was more than offset by demand from Indian and British nationals, many using property investment as a path to the Golden Visa," Waind said.
The Golden Visa offers investors and their families five-year residency in Dubai, extendable up to 10 years. Among the criteria is having a residential property worth 2 million dirhams (Rs 4.5 crore).
Dubai continues to attract a diverse set of buyers from across the globe as people seek a safe haven, tax efficiency and positive investment returns, experts said. Indian and British nationals remained the two most prominent real estate buyers in the third quarter of 2023, with Russians moving to the fifth position for the first time since the second quarter of 2022.
While Turkey moved out of the top 10, likely due to the economic travails of that country, buyers from the Middle East North Africa (MENA) region remain prevalent, with continued growth in acquirers from Egypt, Lebanon, the UAE itself and Jordan.According to the Dubai Land Department, the real estate market recorded 28,249 transactions in the third quarter, a 4% increase from the second quarter and 23% higher than in the year earlier. This was driven by 34% growth in villa and townhouse transactions, with apartment deals contracting 4%, reflecting a trend toward such residences.
"Dubai continues to attract expats from across the globe, with the population growing by almost 100,000 in the year to July," Waind said. "With the UAE expected to attract 4,500 millionaires in 2023, rapid growth persists in the luxury segment."
The burgeoning demand has led to a surge in property prices and rentals. According to various estimates, Dubai's luxury home prices have surged nearly 50% in the year to June, maintaining its top ranking for the eighth consecutive quarter and marking a 225% increase since the pandemic low in the third quarter of 2020.
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