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29 March 2024

Indians scouting for ‘true’ Dubai property bargains

Published
By Parag Deulgaonkar

Although Indians have been among the top buyers of properties in Dubai for years now, these days they are more cautious than before and respond only to “true” property bargains rather than the first available options.

Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India, told 'Emirates24|7': “Many Indians continue to have business interests or family ties in Dubai, since there is a long-standing socio-cultural connection between India and the UAE in general and Dubai in particular. That said, Indians are viewing the UAE market with more circumspection than before and now tend to respond to true property bargains rather than the first available options.”

Indians have spent more than Dh5 billion to purchase properties (land, apartments and villas) just in the first six months of 2011, according to Dubai Land Department data shared exclusively with this website.

Asked if the trend of Indians buying properties across the UAE would continue with the announcement of the three-year real estate investor visa, Puri said this facility might have a certain catalyzing effect on some Indians who have viewed Dubai as a possible investment destination.

In June, the UAE government announced plans to extend the six-month property visa to three years, which analysts believed would lead to a revival of the realty market.

However, no details have been released yet on when the three year visa will be granted.

But do Dubai properties offer a better return on investment compared to properties in Indian metros?

“When compared to cities like Mumbai and Delhi, real estate in Dubai does tend to offer a not insignificant cost arbitrage that can be about 20-30 per cent. Interest in Dubai property continues to be more or less equally distributed among investors responding to rationalised property rates in Dubai and those hoping to cash in on an improved market later.”

Puri ruled out possibilities of Indian developers launching projects in Dubai at least in the mid-term.

“Indian developers are currently preoccupied with completing and selling their existing projects in their local markets, and it is doubtful that there will be much interest in trans-border opportunities in the mid-term,” he added.