The initial three months of 2024 saw a notable change in investment patterns in Dubai’s residential property sector, with Indians once again taking the lead in investing in the city’s real estate market, surpassing the longstanding leaders, the British, according to insiders and recent research.
The availability of a 5-year multiple visit visa is cited as the primary reason for the surge in Indian investments, along with factors such as growing demand from end-users and attractive investment returns in Dubai’s housing sector.
Apart from Indians, Dubai’s property market has recently attracted attention from Americans, who, alongside dominant investor groups like the British and Russians, are driving an increase in demand – and consequently, a rise in property prices and rents – particularly in the luxury segment.
Diwakar Raj, Managing Partner at Foremen Fiefdom, a leading real estate services company in Dubai, stated, “The 5-year multiple visit visa has significantly increased investment opportunities in Dubai, attracting Indian investors in large numbers.”
He added, “Dubai has also started to pique the interest of American investors, driving up demand for residential properties, especially in the high-end segment.”
Raj noted that the increase in investments by Indians, Americans, as well as those from the UK and Russia, has resulted in nearly a 50 percent surge in luxury home prices leading up to June.
Dubai’s property market continues to attract investors from around the globe.
Dubai’s reputation as a place of opportunity and prosperity remains appealing to investors worldwide, with Indians emerging as the leading nationality investing in Dubai in the first quarter, surpassing long-standing leaders, the British, according to data from the recent Betterhomes Residential Market Report.
They anticipate that the spike in Indian investment could drive demand for properties, particularly for investment or extended stays, according to Arabian Business.
Areas with established expat communities such as Bur Dubai and Jumeirah Villages may also experience growth, given their large Indian populations and well-developed infrastructure, Raj suggested.
Indians, consistently among the top five home buyers in the UAE, have long been a prominent presence in Dubai’s real estate scene, with numerous leading Bollywood stars, sports icons, and businessmen owning prestigious residential properties in the city.
The senior executive at Foremen Fiefdom highlighted another significant factor driving Indian investors’ interest in the city: the impact of Dubai’s new Metro Blue Line.
“The metro stations improve accessibility, making areas more desirable for residents who value easy commuting and reduced reliance on cars.
“This convenience factor translates to higher property value,” Raj explained.
Senior executives at other real estate consultancies in the city mentioned that established areas like Bur Dubai, Dubai Marina, and Jumeirah Beach Residence – areas along the Blue Line’s route – can anticipate an increase in property values due to improved connectivity and rising demand.
They also noted that the line extends into previously less-connected areas, opening them up for development and potentially attracting investors.
Raj pointed out investment opportunities associated with the Blue Line, including higher rental yields and potential commercial development near stations, offering opportunities in both residential and commercial real estate.
“While predicting a precise surge in 2024 is challenging, the launch of the Blue Line is expected to generate significant interest, potentially leading to increased investment activity and potential price adjustments near stations in the short term,” he said.
Industry experts highlighted that the UAE reportedly attracted 4,500 new millionaires in 2023, indicating the luxury real estate market’s potential for further growth.
The senior executive at Foremen Fiefdom said market expectations for the first half of the year and beyond focus on investments in ultra-luxury real estate.
“Key considerations for investors include ease of resale, rental profitability, prime location, and long-term investment potential,” he said, adding that these luxury properties offer an exclusive and secluded living environment, appealing to clients who value privacy and serenity as much as the luxurious amenities their homes provide.
