A new wave of Indians buying properties in Dubai is expected in the wake of a slew of policy decisions by the UAE government, including the latest move to issue 10-year residency visas

Indian professionals, both ex-pats already working in the UAE as also those in India and even in Silicon Valley, are expected to lead the new surge in activity in the UAE property markets, aided by softening of prices as well as new initiatives on remote working and longer-term stay options.

“The current policy initiatives and market conditions offer the much-needed flexibility and comfort level to Indians – both professionals working there and elsewhere, as also high net worth individuals (HNIs) to finally take a call on their investment decisions in Dubai,” R Guha, a leading financial sector consultant and a former CFO with a multinational company

“With property prices sliding south (in Dubai), recent government measures and changing buyer preferences post Covid-19, we foresee a cross-section of Indian businessmen and professionals jumping on to the bandwagon to acquire properties in Dubai and elsewhere in the emirates.”

Indian nationals topped the list of overseas investors in the real estate sector in Dubai in 2019, according to the Dubai Land Department.

The UAE government has announced plans to issue long-term visas - five and 10 years - to entrepreneurs, professionals and investors, specialists in the medical, scientific, research and technical fields.

As well as falling property values, Dubai's proximity to India is another major reason cited by sector experts on why Indians are expected to invest in large numbers in the residential sector.

“Dubai has been one of the perennial favourite investment hubs for Indians interested in buying real estate in foreign countries. With the city’s property market witnessing a prolonged period of churning with property prices steadily declining over the last 3-4 years, it has now made Dubai property market amongst the most attractive and affordable in the region.

Real estate sector officials across India said they are preparing for a big jump in enquiries and actual transactions by both high-net-worth individuals and upwardly mobile Indian professionals over the coming months.

“We have been getting increased enquiries on the Dubai market ever since the move on remote working was announced by the UAE government. With the decision on the 10-year visa, we expect a big jump in not only enquiries but many of them leading to actual transactions,” said a senior executive with a Delhi-based consultancy firm.

Guha said the recent government measures announced by the UAE government were well harmonised and thought out and will be a strong enabler for Indians to seriously consider investing in properties.

“The decision on longer-term visas will help ex-pats – especially Indian ex-pats who generally go for limited-period work visas – from the mercy of their employers and provide them with the flexibility and assurance of being able to continue staying there. This will lead to many of them now seriously thinking of buying a house there,” Guha said.

“Half-a-dozen of my own friends, who were planning to come back to India, have now deferred their decisions and planning to stay back and also buy properties there,” he added.

Jacob, however, pointed out that how the expected rush for property acquisitions will pan out will also depend on how the economies of the two countries perform in the short- to mid-term.

“These are incentives which can help boost sentiment to some extent but we will have to wait and watch how both the countries’ economies perform.

“India’s economy must pick up considerably so that surplus wealth generation can encourage property investment increases. Indians’ appetite for property investment in Dubai will also increase in tandem with Dubai’s future ability to generate jobs and attract business,” he said. 

With Expo 2020 Dubai being shifted to 2021, the real estate sector has got some time to bring out affordable solutions for investors.

“This will give a chance to Indian investors to bargain a good property deal and afford the house of their dreams,”

https://www.arabianbusiness.com/real-estate/454722-why-dubais-property-market-could-see-new-surge-in-indian-investors