Why Dubai Real Estate is a Top Destination for Indians?

Dubai has excellent connection networks offering smooth and seamless connectivity throughout the city. The residents and tourists have easy and quick access to the prime locations of Dubai, such as Downtown Dubai. The community with the tallest skyscraper in the world, Burj Khalifa, and the business hub of Dubai, Business Bay. 

Some of the most popular roads in Dubai are:

• Sheikh Zayed Road (E11)
• Sheikh Mohammed bin Zayed Road (E311)
• Emirates Bypass road (E611)
• Dubai-Al Ain road
• Al Khail Road (E44)

All these highways help connect different communities, essential services such as schools, hospitals, etc., and attractions seamlessly within minutes.

Moreover, Dubai has also announced recently that it will launch water taxis, which will help in combating the excess traffic on roads and will create a comfortable and rush-free environment for the citizens.

Dubai is a tax-free haven for investors. While in many countries, such as India, several taxes are charged for real estate investments, Dubai offers an environment where no property tax, capital gains tax, or real estate tax is charged on investments, thus making the city a hotspot and top destination for Indians to pool their money into properties.

India vs Dubai: Comparison of the taxes applicable

One of the main reasons Indians choose Dubai as a top destination for investment is the hunger and attraction towards the luxurious lifestyle enjoyed by the people in Dubai. Dubai is famous worldwide for its immaculate and world-class infrastructure. A befitting example is popular developments such as Burj Khalifa, Dubai Mall, Dubai Fountain, Dubai Marina, etc.

Many Indians want to expand their horizons and enjoy the beautiful and awe-inspiring nightlife of Dubai, filled with exceptional beauty, provisions, events, and amenities. Dubai provides top-notch infrastructural facilities in every area, like education, health, and transportation.

Dubai is an attractive option for investment in terms of the rental yields. While in India, the average rental yield ranges from 2%-5%, Dubai offers attractive and high rental yield rates, generally ranging from 7%-11%. This makes Dubai a robust and lucrative investment option for people all around the world, particularly Indians.

Furthermore, with the increasing infrastructural developments, the rental yields and ROI have the potential to increase in the future, thereby attracting Indians to choose the Dubai real estate market to pool their resources and invest in this flourishing city.

Dubai has showcased a robust and resilient economy that offers attractive propositions to Indian investors. The city’s GDP showed a 3.1% increase from 2023 and reached AED 339.4 billion in the first nine months of 2024.

Sector-wise Contributions

• Wholesale and retail trade - AED 83.12 billion (2.9% increase).
• Transportation and storage - AED 42.135 billion (5.3% increase).
• Finance and insurance activities - AED 39.439 billion (4.5% increase).
• Real estate activities - AED 27.288 billion (3.6% increase).

Further, in 2025, the UAE’s economy is forecasted to achieve 6.7% growth, which is a significant increase from 3.8% in 2024. Moreover, Dubai’s strategic planning and initiatives, such as the Dubai Economic Agenda D33, are all set to further strengthen the city’s global standing and economic stability.

Dubai’s Golden Visa program provides that by investing in AED 2 million (about Rs 4.7 crore), the investors can get a 10-year renewable residency, making Dubai an attractive choice for Indian investors.

Investors can also avail the benefit of family sponsorships, wherein they can sponsor their families, including spouses, children, and in some cases, parents, allowing them to live and work in the UAE. This is another such feature that attracts Indians to invest in Dubai, making this mesmerizing paradise a top destination for them. Moreover, Golden Visa holders in Dubai enjoy easy access to travel and other residency-related benefits, such as opening bank accounts, getting driving licenses, and accessing healthcare and education.

Dubai has some of the most renowned and prominent developers in the world. These developers provide attractive and flexible payment plans for the investors, thereby attracting them to invest in this city. Developers, at times, offer 5-10 year post-handover payment plans with guaranteed returns, making the property ownership an easy and more accessible process for the buyers and investors.

These initiatives aim to attract buyers by reducing upfront costs and providing extended payment periods. Compared to Dubai, India does not offer this much flexibility and accessibility in its Payment plans; therefore, nowadays, many Indian investors are choosing Dubai as a top destination for real estate investments.

In 2024, Dubai has reportedly shown massive capital appreciation. The overall residential property market recorded a substantial shift or change, and the capital values increased by 27.5%. The number of transactions increased by 38%, and the value of these transactions grew by 27%.

Dubai’s business-friendly environment and image as an international transit hub further solidify its stature as a beneficial and advantageous city for real estate investments. The city ranks high in "Ease of Doing Business" rankings, due to its clear, transparent, and smart legal and regulatory framework policies.

Dubai attracts international businesses that offer a variety of incentives for entrepreneurs and business-minded people. This diverse market is a global hub positioned in a nurturing environment to expand the business enterprises effortlessly. On the other hand, India has a limited scope of options for entrepreneurs to establish their businesses and claim its benefits.

The UAE Dirham (AED) is pegged to the US dollar, therefore making Dubai’s currency a stable option compared to other destinations where currency volatility can destroy the returns, as this provides a predictable exchange rate. The Indian currency (INR) depreciates or weakens against stronger currencies like AED and USD, so investing in Dubai allows investors to claim the benefits from capital appreciation and rental yields.

Moreover, this currency disparity helps Indian investors to invest in their properties in Dubai as it is a more viable and cost-effective option compared to many major Indian cities.

Beachfront Ways of Life vs Coastal Living

Prime City Standards vs Metropolitan City Lifestyle

Global Business Hub Vs Business Sector

Dubai is a city that has a strategic and futuristic approach towards implementing its plans and building a visionary image. This is evident from the various initiatives introduced by the city in advance only such as the 2040 Urban Master Plan, and Dubai Economic Agenda D33.

All of these plans and future-oriented procedures in making are a clear image of Dubai’s resilience and approach to building a top city for living, working, and investing. This attitude creates a sense of trust and belongingness and attracts many Indian investors to come and pool their investments in this city.

Dubai, as a robust and resilient market it is, helps in inviting and attracting people across the globe to come and invest in this heaven of opportunities and luxury. Indians are highly attracted to Dubai’s real estate market and have established it as the top destination for investments.

Moreover, Dubai’s sophisticated ambience adds a catchy atmosphere for Indian investors. From its strategic positioning and tax-free policies to its exceptional infrastructure and capital appreciation, this city promotes economic stability and flexibility in the ownership of properties, making the Dubai real estate market a top destination for Indians.