The recent overhaul of the golden visa rules in the UAE has led to an increase in demand for luxury residences, as more Indians opt for a second home in Dubai and other emirates, according to property consultants.
Developers in Dubai, which attracts most of the demand, have started holding property expos in India to make buyers aware of the new rules and their benefits.
“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,” said Akash Puri, director, international business, India Sotheby’s International Realty.
The recent changes to the golden visa rules have encouraged wealthy Indians to take a longer-term approach and invest in properties in Dubai. The emirate has reduced the minimum investment needed for a person to be eligible for the golden visa to AED 2 million (about ?4. 2 crore) from 5 million.
The visa duration has been extended to 10 years from five.
According to data from DXBinteract. com, property sales in Dubai rose 60% on-year in the first half of 2022 to over 43,000 units. Value at AED 115 billion was up 87%.
“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,” said Anuj Puri, chairman of the Anarock Group.
Several factors including Dubai’s proximity to India are driving the demand.
“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,” said Rabiah Shaikh, chief business officer, IPM Asia, Square Yards.
Many Indian brokerage firms have also started holding property expos for Indians wanting to invest in Dubai. “Most of the enquiries we are receiving at our expos are by those who want to stay in Dubai by investing in a property,” said real estate consultancy Investors Clinic’s corporate director, Sachin Arora.
Despite high interest rates, June was the best month for property deals in Dubai in 2022 with 9,000 transactions, as per DXBinteract. com.
“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,” said Gaurav Gambhir, managing director of Dubai-based Lion Mortgage Consultants. “We have also seen an uptick in the services like property management and loan for property, suggesting an increase in the sale of property.”
Buying property in the UAE is a dollar-denominated investment, said Saahil Verma, cofounder of Iris Living Spaces. “Investing in real estate in Dubai also helps Indian investors due to appreciation of dollar,” he added.