Upwardly mobile Indian professionals living in various parts of the world are now seeking to buy residential properties in Dubai in large numbers, marking a new trend in real estate in the most sought after Gulf city by investors from the South Asian country, industry experts said.
Villas and townhouses in Dubai Land, Arabian Ranches and Meydan are among the preferred locations for the expat Indian professionals living in some of the Western and Southeastern cities.
“Of late, professionals of Indian origin residing in Singapore and London are buying residential properties in Dubai in numbers,” Sajai Jacob, chief executive officer – GCC of Anarock, a leading real estate consultancy in GCC and India, told Arabian Business.
“These purchases are mainly for investment purposes,” Jacob added.
Jacob, who is also the managing director and country head of ApnaComplex, an apartment management platform, said though earlier Anarcok used to get enquiries and deals from some of the Indian origin professionals from Silicon Valley, this is a new trend that the expat Indian professionals from many other overseas countries are now seeking to purchase properties in Dubai.
Senior executives at other real estate consultancies also confirmed the increasing interest of senior professionals of Indian origin from many parts of the world to invest in properties in Dubai.
They said luxury properties were attracting expat Indian professionals more, given that it is the wealthy non-resident Indians (NRIs) who are aspiring to own a home there.
“These professionals are looking for residential properties starting from AED 4 million onwards,” a senior executive with a Mumbai-based consultancy said.
Jacob also said maximum demand comes in for properties that range anywhere between $250,817 (INR20 million) to $752,452 (INR60 million).
The Anarock chief executive said several factors were responsible for the growing demand from expat Indian professionals for property investments in Dubai.
“Besides lowered prices and its proximity to India, another reason why Indians are investing in Dubai is due to favourable government measures – including the UAE’s long-term visas of five and 10 years to entrepreneurs, professionals and investors, specialists in the medical, scientific, research and technical fields,” Jacob said.
Though on an upward trajectory in recent months, residential property prices in Dubai are still considered lower, compared to many other overseas cities, including London – another favourite destination for Indian realty investments historically.
Industry executives said Dubai witnessed an overall softening in real estate prices over the last few years due to weak economics and oversupply in the market which made it a buyers’ market.
“Housing affordability has been the best in Dubai in the last two years,” an executive with Makaan, a property portal said.
Real estate consultancies are upbeat that the trend of wealthy expat Indian professionals investing in residential properties in Dubai will continue going forward.
“Yes, it will increase going forward. The comfortable luxurious lifestyle in Dubai, the ease of doing business, great ROI’s (return on investments) in terms of rent or even capital appreciation are some of the reasons,” Jacob said.
Industry executives said though property prices almost bottomed out in Dubai, prices are likely to remain stable over the next one year or so.
Given that Dubai continues to be a buyers’ market, developers will refrain from increasing prices substantially. Therefore, affordability may continue for some years, they said.
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