Mumbai, India (CU)_ According to property consultants, the recent revision in the golden visa regulations in the UAE has resulted in an increased demand for luxury houses in the country, urging more Indians to choose for a second home in Dubai and other emirates. Dubai developers, which attracts the majority of demand, have begun hosting property expos in India to inform purchasers of the new regulations and their advantages.
According to Akash Puri, director of international business at India Sotheby’s International Realty, “Buying a house is the simplest way of investing and securing a golden visa. Dubai also has no capital gains tax, which makes investment in real estate a compelling proposition”.
Recent modifications to the golden visa regulations have urged rich Indians to adopt a longer-term perspective and invest in Dubai real estate. The emirate has also cut the minimum investment required to qualify for the golden visa from 5 million to 2 million AED (approximately 4.2 crore). The visa period has also been increased from five to ten years. The data from DXBinteract.com indicate that property sales in Dubai increased 60 percent year-on-year to more than 43,000 units in the first half of 2022.
According to Anuj Puri, chairman of the Anarock Group, “Inquiries rose by at least 10-15% in the first half of 2022 compared to the same period in 2021. Lower price points have made luxury homes in Dubai very attractive”. The demand is driven by several factors such as Dubai’s close distance to India.
According to Rabiah Shaikh, chief business officer at IPM Asia, Square Yards, “With the revised laws permitting the merger of properties to be eligible for golden visa, Indians are lapping up multiple properties in a bid to conform to the said rules. Besides, entrepreneurs/investors can also get a 10-year residence visa by investing in a startup in the UAE under the new laws”.
In addition, several Indian brokerage companies have also begun hosting property expos for Indians interested in investing in Dubai. According to Sachin Arora, corporate director of real estate consultancy Investors Clinic, “Most of the enquiries we are receiving at our expos are by those who want to stay in Dubai by investing in a property”.
According to Gaurav Gambhir, managing director of Dubai-based Lion Mortgage Consultants, “There is a fair amount of increase in demand and globally people are coming to the UAE and buying properties. A large portion of this demand is from India. The interest increased post Covid-19 and the government has been coming with policies which are fuelling the demand”. He added, “We have also seen an uptick in the services like property management and loan for property, suggesting an increase in the sale of property.”
According to DXBinteract.com, in spite of the high interest rates, June was the peak month for real estate transactions in Dubai in 2022, which recorded 9,000 deals. According to Saahil Verma, co-founder of Iris Living Spaces, the purchase of real estate in the UAE is a dollar-denominated investment. He said, “Investing in real estate in Dubai also helps Indian investors due to appreciation of dollar”.
