Unique Properties; UAE’s Golden Visa Reforms Are Boosting Dubai’s Indian Population and Their Contributions to the Country’s Real Estate Sector

Unique Properties, one of Dubai’s leading real estate agencies, credits the UAE’s growing Indian population as a major catalyst in the city’s upward real estate trajectory. Over 88.52% of the country is made up of a diverse mix of nationalities; Indians represent the largest demographic of expatriates at 27.49%. This figure is anticipated to rise further, and subsequently support the emirates’ forecasted AED 300 billion in real estate sales transactions in 2023.

Witnessing a 0.89% increase from 2022, the country’s population now stands at approximately 10.17 million people and foreign investors from the likes of Europe have contributed to this growth. Overseas turmoil has seen Russians increasingly make their way into the country in search of a trusted base to protect their assets. On the other hand, Indians have long been present in the UAE; they have been among the top three nationalities to purchase property since 2004 and invested AED 83.62 billion from 2015 to 2021.

This momentum has continued in recent years through tweaks to the UAE’s Golden Visa Program. Last year, the government approved new conditions for securing a 10-year Golden Visa which saw a minimum investment of AED five million in real estate decrease to AED two million. In a country where securing a passport as an expat is a rarity, this reform accordingly paved an alternative path for wealthy foreign investors to capitalize on the attractiveness of Dubai’s real estate market and also become a staple of permanence in the UAE.

India is becoming increasingly affluent and its high-net-worth-individual (HNWI) population, those with assets valued at $1 million and above, is projected to see a notable growth surge in the coming years. In 2022, the country’s HNWI population was recorded at 797,714 people; a growth rate of 107% is expected through 2027 for this number to reach 1.65 million people. Moreover, Indian ultra-high-net-worth individuals (UHNWIs), who are classified as those with assets valued at $30 million and above, will reportedly grow by 58.4% during this same period.

Data from the Dubai Land Department (DLD) shows that Indian investors accounted for 20% of all property transactions in the emirate in the first quarter of 2023, reflecting a 15% year-over-year (YoY) increase. As the Indian population’s wealth expands, Unique Properties foresees an additional uptick in sales transactions being facilitated in Dubai by this demographic. This will be a byproduct of several factors including the UAE’s ideal business environment, world-class infrastructure, and its close proximity to India of just three hours via flight, among other criteria.

Arash Jalili, Founder and Chief Executive Officer of Unique Properties, commented: “The emirate has experienced significant millionaire growth over the past decade and it is projected to continue with Dubai on pace to be one of the top 20 wealthiest cities in the world by the end of 2030. Indians will continue to be a driving force for the years to come but even more so through the remaining first half of 2023; as additional Indian-imposed tax collections are incentivizing Indians to invest in countries like the UAE where they can avail favourable tax advantages.”

In addition to tax benefits, one of the biggest motivators for Indian investors to buy real estate in the emirate is Dubai’s attractive rental yields; on average, owners in the UAE can expect a return of approximately 7% compared to just 2.7% in India. Post-pandemic interest in Dubai is set to continue and ongoing reforms will only boost the metropolitan city’s global appeal. Unique Properties has been nurturing the country’s real estate growth for the past 15 years and it continues to facilitate several transactions across Dubai’s residential off-plan segment. The full-service, award-winning agency also facilitates resale property, sales and commercial, and rental transactions with its international expert teams and extensive market knowledge.

- ENDS -