The market for second homes in Dubai’s real estate market has been attracting a growing number of entrepreneurs, professionals, and small and medium enterprise owners from India, according to a recent report by Khaleej Times.
A significant portion of the total Q2 sales value of Dubai homes was driven by Indians, the report also said.
According to the report, the quality of life in the emirate, connectivity to global business destinations, and lower rental yields (6-10%) for a cosmopolitan city have made Dubai’s real estate market an attractive destination for high net worth individuals (HNWIs) from India to purchase second homes.
“A USD 1 million worth of investments can buy significantly more real estate space in Dubai than in most other cosmopolitan cities such as Mumbai, Shanghai, London, Singapore and Monaco,” Shajai Jacob, the GCC CEO of Anarock Property Consultants, told Khaleej Times.
Moreover, the transparency and regulatory compliance measures supporting Dubai’s real estate, along with regulated supply since the COVID-19 pandemic, provide further reassurance to second home owners, the report said. Jumeirah Village Circle, Jumeirah Lake Towers, Meydan and Dubai Hills Estate especially offer lucrative entry prices and returns on investments.
DUBAI'S REAL ESTATE MARKET AS A DESTINATION FOR SECOND HOMES
Residence by ownership is a key driver for purchasing second homes in Dubai. Last year, Indian HNWIs made the most enquiries for Dubai’s residence by ownership visas, and such enquiries are expected to grow in number this year.
Further, Indian investors flooded Dubai’s real estate market last year as flexible discounts and post-handover payment options opened up in the emirate amidst a wide-sweeping drop in prices of properties.
The rising interest in owning second homes in Dubai is not a new trend. In 2018, Dubai’s real estate market was named a favourite among millionaires and multi-millionaires looking to purchase luxury international second homes.
It was ranked fifth worldwide for its market for second homes for the second consecutive year, finding a place alongside New York, London, Hong Kong, and Singapore.
Further, in 2019, 16% of housing sales volume in Dubai was attributed to Indian buyers, resulting in AED 8 billion worth of home sales. Indians have also been one of the top three nationalities to make investments in Dubai’s real estate market.
In light of the COVID-19 pandemic, new visa programs coupled with better healthcare facilities, high vaccination rates and international connectivity has led Indian investors to double their interest at the possibility of owning a second home in the emirate.
Photo credit: www.arabianbusiness.com, www.gourban.com
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