The extension of a travel and flights ban from India to the UAE has adversely affected plans of cash rich Indians to buy properties in Dubai, but the impact has been more than off-set by the trend of increasing investments by expat Indians staying in the country in the local real estate market, according to industry experts.
The property market in the UAE has also been witnessing a major shift in demand from rental properties to primary residential properties since the beginning of this year.
UAE authorities on Sunday said flights between India and the country will remain suspended until July 21, amid continued concerns over the latest Delta-plus variant of the coronavirus in the South Asian country.
“The travel ban [extension] has affected the property buying by cash rich Indians who have had to reschedule their visits to Dubai in this regard,” Shajai Jacob, chief executive officer – GCC of Anarcok Property Consultants, told Arabian Business.
“We have been getting several enquiries from the high net worth (HNI) class in India to own properties in Dubai. These demands have mostly come from business communities and entrepreneurs,” Jacob said.
However, he said the good news is that expat Indians staying in the UAE continue to invest in the local real estate market.
“We have seen a significant portion of rental property demand shifting to primary residential since January 2021,” said the chief executive of Anarock, which focuses on handling property investments by Indians in the UAE and also expat Indians in the GCC region in their home country.
Executives at other real estate consultancy firms said the Dubai real estate market is having its best year since 2013, with sales soaring high and that expat Indians have contributed a large chunk to it.
Jacob said cumulatively, enquiries from Indians buying properties in Dubai has seen an increase of 17 percent in recent weeks.
Shajai Jacob, chief executive officer – GCC of Anarcok Property Consultants
“The ready [to move] properties have seen the most demand as they offer immediate relief from rents. With the continued impact of Covid on the general lifestyle, the 2BHKs (bedroom, hall and kitchen) and 3 BR (bedroom) townhouse configurations offering added flexibility for work from home and learn from home are being snapped up in the market,” said Jacob, who is also managing director and country head of ApnaComplex, a society and apartment management technology platform acquired by Anarock recently.
Arabian Business earlier reported that the Dubai residential real estate sector, especially the luxury segment, was seeing a surge in demand from Indian businessmen in the wake of the second Covid wave and tax-related issues triggering a trend of several Indian industrialists seeking to shift their bases and families to the UAE and a select few other countries.
Favourable policy measures offered by the UAE Government, including full ownership of businesses, allowing remote registration of offshore companies and long-term residency visas were also influencing this trend.
Historically, Dubai has been the most sought after overseas market for property investments for wealthy Indians, followed by London. Indian nationals topped the list of overseas investors in the real estate sector in Dubai in 2019, according to the Dubai Land Department.
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