Real Estate Dubai

28 December 2023     By - Reakmaker

Dubai's foremost real estate purchasers are now Indians!

---

Dubai's real estate market has witnessed a significant influx of Indian investors, positioning India as the leading contributor to the city's real estate development. The Betterhomes residential market report reveals a notable shift, with Indians surpassing other nationalities during the June to September quarter. This contrasts with the initial quarter when British nationals held the top spot. The shift is attributed to Indians actively acquiring new homes in Dubai, driven by both end-user preferences and investor interest in favorable yields and eligibility for the Golden Visa. Indians have consistently maintained a prominent presence among the top five buyers of new homes in Dubai.

However, increasing wealth and geopolitical isolation, such as that of Russia, have changed the dynamics of the market.

Indians have played a pivotal role in driving new home purchases, whether stemming from end-user demand or investors seeking higher returns, noted Waind. In a notable shift, Russians dropped out of the top three buyers due to the weakened ruble affecting affordability. Q3 2023 data reveals Indian and British nationals maintaining their positions as the top two buyers, while Russians slipped to the fifth spot, marking their first time outside the top five since Q2 2022. Dubai's continued appeal globally, attributed to its haven status, tax efficiency, and positive investment returns, has led many to invest in property to secure the Golden Visa, providing a five-year stay for them and their families, extendable to 10 years, with a residential property requirement valued at two million dirhams (Rs 4.5 crore).

Despite Turkey's exclusion from the top ten, likely due to economic challenges, buyers from the MENA region remain robust. Acquirers from Egypt, Lebanon, the UAE, and Jordan are on the rise. The Dubai Land Department reported a 4% increase in real estate transactions in Q3, reaching 28,249, compared to Q2, with a substantial 23% YoY growth. Villa and townhome transactions surged by 34%, while apartment deals dipped by 4%, reflecting a preference for these types of residences. Dubai's expat population grew by nearly 100,000 from July of the previous year, with expectations of rapid growth in the luxury segment. Estimates suggest that the UAE will attract around 4,500 new millionaires in 2023. Luxury home prices in Dubai have soared by nearly 50% YoY, maintaining an all-time high of 225% since the pandemic lows in Q3 2020.