Buying a house in Dubai is cheap
Today, the average price of a 2BHK flat in Mumbai is Rs 2 crore, in Bengaluru Rs 1.5 crore and in Delhi-NCR Rs 1.25 to 1.80 crore. But do you know that you can get a flat in Dubai at this price. The surprising thing is that Indians have invested more than 35 billion dirhams in Dubai in 2024. Let us understand why people of India are leaving their country and buying property in Dubai?
The property market of Dubai is growing rapidly at present. Investors from India and abroad are buying property there in large quantities. According to a report, a big change is being seen in the real estate market of Dubai. The figures for 2024 are shocking. Another report says that Indians became the largest foreign investors in real estate in Dubai and even left the British people behind. Indians alone account for 22 to 23 percent of the entire foreign transactions. Anil Balyan, Sales Director of Tesla Properties in Dubai, says that Indian investors have been in the top three in real estate in Dubai for many years.
In the year 2024, Indians invested more than 35 billion dirhams i.e. 84 thousand crore rupees in Dubai. Dubai's total real estate transactions reached 411 billion dirhams, an increase of 37 percent from last year. At the same time, in the first six months of 2025, this figure reached 431 billion dirhams, which shows an increase of 25% year-on-year.
According to the latest report of Times of India, there was a huge surge in inquiries and bookings from India in the festive season of Diwali-2024. Dubai property firms offer flexible 1% monthly payment plan with exclusive Diwali promotion. Danube Group even launched a 0.5 percent monthly payment plan during Diwali. Between 2015 and 2023, Indians have invested more than 120 billion dirhams in real estate in Dubai. These are not just people from metro cities, but investors from smaller cities are also moving towards Dubai.
The biggest attraction for property investment in Dubai is its tax-free environment. There is no income tax, no property tax and no capital gains tax in Dubai. When you sell property in India, you have to pay capital gains tax, but in Dubai your entire income remains tax-free.
When buying property in India, stamp duty, registration fees, property tax have to be paid every year. Stamp duty in Mumbai can range from 5 to 6 percent. But in Dubai, only 4 percent transfer fee is charged, and no tax has to be paid again and again. Real estate expert Anil Balyan says that the average property transaction in Dubai is around 2 million dirhams. Properties in Mumbai and Gurugram are often more expensive than Dubai, while prices in Bengaluru are almost the same. Skyrocketing property prices along with expenses like stamp duty and registration fees have forced many buyers to look for options abroad. On the other hand, entering the real estate market of Dubai has become easier and more affordable.
Another big reason for buying property in Dubai is High Rental Yields i.e. good income from rent. The fares in Dubai are ranging from 6 to 11 percent, which is one of the highest in the world. Rents are very low compared to property prices in metro cities of India. Fares are 2 to 4% in Mumbai, 3 to 5% in Bengaluru, 2 to 4% in Delhi. Experts say that if someone wants to earn good rental income by buying a property, then buying a property in Dubai is more beneficial because the rental yield there is between 7 to 10 percent. Rental yields in top cities in India generally range from 2 to 5%.
This means that if you buy a property in Dubai worth Rs 1 crore, you can get annual rental income of Rs 6 to 11 lakh. Whereas in India you will get only Rs 2 to 5 lakh on this investment. Dubai's property market is also highly liquid. The transaction process there is faster than India and there is very less paper work. If you want to sell property, you can easily find buyers.
The UAE government has made favorable policies for foreign investors in Dubai. Visiting-visa, investor-visa options, easy regulations – all these together are making maintenance and home ownership easier. From a lifestyle perspective, Dubai is safe, has high-quality infrastructure, and residential areas are well-connected to markets – Indian investors consider it a global bridge. A report in the Financial Times says that many small-town Indians are now buying property in Dubai because the value for money is better there. At the same time, prices are increasing in India, tax burden is increasing and investment inefficiencies are increasing.
Indian investors have now started buying high-end properties in Dubai. Be it businessmen from big cities or young investors. Data for 2022 shows that Indians bought about 40 percent of the property purchased in Dubai that year. There are many among them who are leaving their country to live and invest in Dubai.
However, there are many opportunities in Dubai, but the risks are also not less. Rating agency Fitch has warned of a potential decline of 15% in prices in 2025-26 due to excess supply of about 2,10,000 pre-construction properties. Dubai's market depends heavily on tourism, trade and regional stability, so any disruption can have a direct impact on real estate.
Some reports say that the inventory in Dubai is increasing rapidly, money is coming in a lot, but the sustainability of the number of occupants and rental yield is under question. A major risk of investing in off-plan property is construction delays, which may cause investors to wait longer than expected. Regulatory related challenges are also coming to the fore in India-UAE transactions. For example, using international credit cards for down-payment generally violates Reserve Bank of India (RBI) regulations. This means that it is not enough to just say that Dubai is beautiful, it is also important to invest wisely.
The real estate sector is growing rapidly in India too, but there are challenges here. Like basic taxes, delay in authorities, low rent-yield. Whereas Dubai is better in this matter. But India has a big plus point. Domestic capital, social roots, long-term approach. However, this choice has now become not just personal but strategic. Perhaps that era is now gone when the people of India thought only of buying a house in the country. Today they say why not Dubai? Tax free, lifestyle is better and investment is also easy. But remember that there are risks there and wisdom is also required.
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