Dubai’s investor-friendly policies, advanced infrastructure, world-class safety, and strategic global market connectivity make it an attractive destination.
Dubai: A Prime Real Estate Destination for Global Investors
Dubai has emerged as a top choice for international property investors. In an exclusive discussion with Financial Express Online, Sumit Pathak, CEO of Linus International FZCO, Dubai, shares insights into Dubai’s real estate market compared to major Indian cities. He elaborates on property prices, rental returns, investment appeal, and how Dubai’s tax advantages attract global investors.
How Do Dubai’s Property Prices Compare with Indian Metros Like Gurugram, Mumbai, Hyderabad, and Bengaluru?
Property prices in Dubai remain competitive with those in leading Indian cities, depending on location. A spacious 2,500 sq. ft. apartment in Dubai typically ranges from AED 1.5 million to AED 3.5 million. In contrast, Mumbai’s prime localities can cost as high as AED 1,500 per sq. ft., while Gurugram has seen prices surge past AED 800 per sq. ft. Meanwhile, Bengaluru and Hyderabad have witnessed moderate price growth. Dubai stands out by offering greater value due to its modern infrastructure and premium amenities.
How Do Returns on Investment in Dubai Compare with Those in India?
Dubai outshines Indian cities in rental yield, offering returns between 7% and 11%, while cities like Mumbai and Bengaluru average 2% to 4%. For example, an investment of AED 2 million (₹5 crore) in Dubai can generate AED 170K–200K (₹40–50 lakh) annually. In contrast, a similar investment in an Indian metro would yield around AED 40K–80K (₹10–20 lakh). Furthermore, Dubai’s tax-free structure significantly enhances overall returns, unlike India, where rental income is subject to taxation.
How Attractive Are Rental Returns on Residential and Commercial Properties?
Dubai boasts impressive rental yields, especially in high-demand districts such as Downtown Dubai, Business Bay, and Dubai Marina, where yields range from 8% to 11%. In contrast, Indian cities offer much lower returns, typically between 2% and 4%. Commercial real estate in Dubai also performs exceptionally well, benefiting from a thriving global business environment. Indian metros, however, sometimes struggle with oversupply, limiting rental growth potential.
Which Locations in Dubai Present the Best Investment Potential?
Some of the most promising residential investment areas in Dubai include Dubai Marina, Downtown Dubai, Business Bay, Jumeirah Village Circle, and Palm Jumeirah. These areas combine excellent infrastructure, luxury living, and strong rental demand. For commercial properties, DIFC and Business Bay continue to attract multinational corporations, ensuring sustained value appreciation.
Why Is Dubai a Tax-Friendly Destination for Investors?
Dubai’s tax-free policies serve as a major attraction for global investors. The absence of income tax, property tax, and capital gains tax makes it a highly favorable market compared to India, where taxation significantly reduces rental and resale profits. This investor-friendly environment allows property owners to maximize their returns with minimal deductions.
What Other Factors Make Dubai an Attractive Real Estate Market for International Investors?
Beyond its tax-free advantages, Dubai’s pro-investor policies, including Golden Visas, advanced infrastructure, and exceptional safety, enhance its appeal. The city’s stable currency, pegged to the US dollar, further strengthens investor confidence. Additionally, Dubai’s diverse expatriate population fosters an unmatched global lifestyle, making it a preferred destination for property investment.
