With recent economic changes in India and the lack of incentivized benefits for investments, especially in the real estate sector, Indian investors are looking for alternate means to achieve higher returns on investments. As such, they are setting their sights on Dubai.
The trend of Indians investing in Dubai has risen massively due to the exponentially increasing property prices in India. Have it in mind that over 25 per cent of foreign investment in Dubai real estate is contributed by Indians. Indians topped foreign real estate investments in Dubai last year, making Dh12 billion worth of property transactions across 6,263 investors.
There has been a 12 per cent growth in the number of Indian travelers to Dubai despite demonetization and cash pressures. Also, with the recent development, the repercussions have reduced sales in the Indian real estate sector. With the post demonetization last November, Indian investors who wish to invest in second homes or deploy their recently-converted old money to new money have limited options to achieve higher returns in India.
In Dubai, Indian investors can enjoy tax-free returns of eight to 10 per cent and sound capital appreciation as the dirham is pegged to the US dollar and unaffected by currency fluctuations. Also, under the Reserve Bank of India’s ‘liberated remittance scheme’, an Indian investor can transfer $250,000 legally per year. A couple can send $500,000 every year. This amount can fetch a fantastic property in Dubai.
It’s also important to note that the simplicity and ease of registering a property in Dubai in comparison to India is much better and one is entitled to a residence visa on investing Dh1 million in this city. Report also has it that property prices in Dubai are very economical when compared to India.
Asides that, all apartments in Dubai are sold in terms of carpet area while in India, it is sold as built-up. In addition, car park is given for free in Dubai. In India, it is charged separately. In Dubai, most apartments come with fittings and fixtures whereas in India, properties usually come shell and core.
So, when these factors are put together, you get a fantastic deal in Dubai and much higher value for money. As of today, you can buy only a 99sqm land plot in Mumbai for $1 million versus a 162sqm land parcel in Dubai for the same amount. Over the years, Dubai have grown into a hotspot not only for business but also for sectors such as tourism, real estate, etc. So, if you’re interested in acquiring a property in Dubai, be sure to consider the key tips stated below.
