Property Developers in Dubai Witness a Surge in Interest from Indian Tier 2 and Tier 3 Cities
Dubai Real Estate Gaining Momentum Amid Rising Property Prices in India
Dubai is experiencing a significant influx of interest from property buyers in Tier 2 and Tier 3 cities across India. As real estate prices in metropolitan cities like Delhi and Mumbai soar to record highs, Dubai has emerged as an attractive alternative for investment. In India’s capital and financial hubs, most new properties are priced above ₹5 crore, aligning with the average property price in Dubai.
In Dubai, the real estate market continues to grow robustly, with both registered transactions and sales values posting steady double-digit increases.
“Property prices in the NCR and Mumbai regions now rival those of global gateway cities like Dubai, driving Indian investors to explore opportunities in Dubai’s real estate market,” remarked Akash Puri, Director, International, India Sotheby’s International Realty.
Dubai has long been a hotspot for international property investors, and Indians consistently rank among the top buyers. Developers report that nearly 50% of buyers in newly launched projects are from India, with 70% of them hailing from smaller towns.
“The trend is particularly prominent among investors from Tier 2 and Tier 3 cities in India,” shared Rohit Bachani, Co-Founder of Merlin Real Estate, a Dubai-based firm advising Indian investors worldwide. “Properties that were priced at just ₹50 lakh in the late 1990s and early 2000s are now valued at over ₹25 crore, highlighting the phenomenal growth of commercial real estate in India.”
Dubai Real Estate Sets New Records
Recent data from Square Yards indicates that Dubai achieved a milestone in 2024, recording over 120,000 residential transactions (off-plan and ready), amounting to a staggering AED 259 billion. Registered transactions rose by 43% year-on-year, while sales values increased by 34%.
Although a precise breakdown by nationality is unavailable, industry insiders confirm that around 50% of buyers in newly launched projects are Indian.
“Over the past five years, property values in India have increased by 60%. In Dubai, the average registered transaction value is AED 2 million (approximately ₹5 crore),” said Rabiah Shaikh, Chief Business Officer and Principal Partner – Global Markets, Square Yards.
Tax Advantages Boost Dubai’s Appeal
Dubai’s investor-friendly tax policies, including the absence of capital gains and income tax, offer a stark contrast to India’s tax regime, which imposes capital gains taxes and other property-related levies.
The tax incentives make Dubai an increasingly attractive destination for Indian investors, particularly when weighed against the higher taxes and regulatory burdens in Indian metros.
