Indians have assumed the mantle of the foremost real estate investors in Dubai, eclipsing the British, as revealed by the Betterhomes Residential Market Report. This dynamic shift, witnessed in the June and September quarters, underscores the burgeoning influence of Indian investors shaping the contours of Dubai’s real estate landscape. In the initial quarter, British nationals held the lead, but Indians swiftly ascended to the top position, displaying a proclivity for new home acquisitions catering to end-user demand and investors eyeing superior yields and Golden Visa eligibility. India consistently features among the top five homebuying nations in Dubai, a trend underscored by the reshuffling of priorities amid increasing affluence and geopolitical developments, notably Russia’s isolation.
Richard Waind, CEO of Betterhomes, the Dubai-based property consulting firm, highlighted the pivotal role played by Indians in steering new home purchases. He noted that the decline of the Russian ruble, impacting affordability, led Russians to drop out of the top three buyers for the first time in 18 months. However, this decline was offset by robust demand from Indian and British nationals, many leveraging property investments for Golden Visa eligibility.
The coveted Golden Visa, offering five-year residency in Dubai, extendable up to a decade, involves criteria such as owning a residential property worth 2 million dirhams (Rs 4.5 crore). Dubai’s allure as a safe haven, coupled with tax efficiency and positive investment returns, continues to attract a diverse set of buyers globally. Notably, Indian and British nationals maintained their prominence as the two leading real estate buyers in the third quarter of 2023, with Russians slipping to the fifth position for the first time since the second quarter of 2022.
Despite the economic challenges faced by Turkey, resulting in its exit from the top 10, buyers from the Middle East North Africa (MENA) region persist, with continued growth in acquisitions from Egypt, Lebanon, the UAE, and Jordan.
The Dubai Land Department reported 28,249 transactions in the third quarter, reflecting a 4% increase from the second quarter and a substantial 23% surge from the previous year. The growth was notably driven by a 34% increase in villa and townhouse transactions, while apartment deals contracted by 4%. This shift signifies a growing preference for villa-style residences.
Dubai’s real estate market, buoyed by increasing population growth and an anticipated influx of 4,500 millionaires in 2023, continues to experience rapid growth, particularly in the luxury segment. This heightened demand has propelled property prices and rentals, with luxury home prices in Dubai surging nearly 50% in the year to June, maintaining a top ranking for the eighth consecutive quarter and marking a remarkable 225% increase since the pandemic low in the third quarter of 2020.
