The new and upcoming upper middle class from Tier 2 Indian cities such as Indore, Bhilai, Ranchi, Pune, Nasik and Lucknow are driving the Indian investments in Dubai’s residential property market, in what is seen as an interesting investor profile change from South Asian country.
Another emerging trend is the new Indian millionaires from the tech stable moving aside the traditional Mumbai and Delhi-based business houses and entrepreneurs to invest in upscale residential assets in Dubai’s upcoming landscapes, industry insiders said.
Dubai developers are also aiding the new trend with offers of fully paid air tickets and free stays to prospective Indian investors to inspect their new and trendy housing projects.
Dubai property investments
“Of course the demand from Tier 1 [Indian] cities continues to persist, but of late, there has been a surge in demand coming from several Tier 2 Indian cities for property investments in Dubai,” Shajai Jacob, CEO – GCC, Anarock, a leading Indian real estate consultancy with major operations in the Gulf region, told Arabian Business.
“And it’s just not traditional businesses or entrepreneurs who are placing this demand, it’s also the new [Indian] millionaires from the tech stable who are demanding their place under the sun,” Jacob said.
He said of late their firm has been seeing a rising demand from Indian tech entrepreneurs, who used to earlier invest in more mature markets such as Singapore, to invest in properties in Dubai.
“With Singapore and other traditional markets having heated property ecosystems currently, Dubai seems to be fast emerging as one of the hottest investment destinations for these upwardly mobile techies,” he said.
Senior executives at other real estate consultancies said Indians continue to be among the largest overseas investors in Dubai’s real estate sector, especially with the slew of launches that continue to take place.
“As new projects get launched, Dubai developers fish in Indian cities, of late more in second rung ones with rising non-resident Indian (NRI) population, for cross-border demand,” said a senior executive with an online Indian property portal.
Jacob said the Indian interest for Dubai properties is primarily dictated by the superior lifestyle, premium products, the Golden Visa offers as well as the potential capital value appreciation over the medium and long term.
Industry insiders said it’s not only the Indian investor profiles that are changing of late, but even their property preferences are also seeing a major change.
Jacob said Dubai properties in the price range of AED 3-8 million are in preference now for investors from India.
“Demand of late is more pointed towards home layouts such as 1.5, 2 and 3 BHKs largely for most investors. Almost all investors and buyers are looking at an extra room for WFH (work from home) option, along with community experience and potential for increased rental yield,” he said.
As for freebies, industry insiders said though most Dubai developers are offering some kind of incentives – possibly offers like fully paid flight and stay for inspection of properties – but such offers are quite limited.
“Given the huge demand that launches are witnessing, there are not many price-offs,” Jacob said.
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