According to industry insiders and recent research, the first quarter of 2024 saw a significant shift in investment trends in Dubai’s residential real estate sector, with Indians once again overtaking British investors as the most popular nationality.
Apart from Indians, Americans are also becoming interested in Dubai’s real estate market. They, along with other major investor groups like British and Russians, are driving up demand, which in turn is driving up property values and rentals, especially in the luxury market.
Along with other reasons like rising end-user demand and alluring investment yields in Dubai’s housing sector, the 5-year multiple-visit visa facility is cited as the main driver of the Indian investment boom.
“The 5-year multiple visit visa has opened doors to a boost in investment opportunities in Dubai, further attracting Indian investors in a big way,” Diwakar Raj, Managing Partner at Foremen Fiefdom, a leading real estate services company in Dubai, told Arabian Business.
“Dubai, of late, is also seen to be stirring the interest of American investors, pushing up demand for residential properties, especially in the high-end segment,’ he said.
According to Raj, the influx of investments from Russian, British, and Indian investors is causing a nearly fifty percent increase in the price of luxury homes in the months leading up to June.
The real estate market in Dubai continues to draw international investors.
Data from the most recent Betterhomes Residential Market Report revealed that Indians surpassed British investors to become the most common nationality investing in Dubai in the first quarter, demonstrating the city’s continued appeal to investors worldwide as a land of opportunity and prosperity.
According to industry insiders, rising rental rates, a thriving residential sales market, and the allure of the villa market are some of the factors luring Indian investors to Dubai.
They predicted that the increase in Indian investment would raise demand for real estate, especially for long-term or investment purposes.
Demand and price increases are anticipated, particularly in regions that are well-liked by Indian travelers and have well-known facilities and cultural attractions.
Established expat communities like Bur Dubai and Jumeirah Villages might also see a boost, as they are known for their large Indian populations and well-developed infrastructure, Raj said.
Indians have been a mainstay in Dubai’s real estate market for a long time. They routinely rank among the top five home buyers in the UAE, and many prominent Bollywood stars, sports figures, and businessmen own prestigious residential properties in the city.
Opening of Blue Metro Line to spur more demand
The impact of Dubai’s new Metro Blue Line, according to the senior executive of Foremen Fiefdom, is another important factor luring Indian investors to the city.
“The metro stations enhance accessibility, making areas more desirable for residents who value ease of commuting and reduced reliance on cars.
“This convenience factor translates to higher property value,” Raj said.
Senior executives at other city-based real estate consultancies stated that established neighborhoods along the Blue Line’s route, such as Bur Dubai, Dubai Marina, and Jumeirah Beach Residence, should anticipate higher property values as a result of better connectivity and greater demand.
According to them, the line also stretches into formerly unconnected areas, allowing for development and possibly drawing in investors.
According to Raj, there are investment opportunities in both residential and commercial real estate with the Blue Line, including higher rental yields and possible commercial development near stations.
“While predicting a precise surge in 2024 is challenging, the Blue Line’s launch is expected to generate significant interest, potentially leading to increased investment activity and potential price adjustments near stations in the short term,” he said.
Luxury real estate to see continued demand
According to industry experts, the United Arab Emirates is expected to attract 4,500 new millionaires in 2023, indicating the market’s potential for continued growth in luxury real estate.
According to the senior executive at Foremen Fiefdom, ultra-luxury real estate investments are the main focus of market expectations for the first half of the year and beyond.
“Investors are attracted by the potential for high returns on investment (ROI) and the overall effectiveness of their investments.
“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.