The real estate market in the emirate experiences ongoing robust global demand, driven by individuals seeking secure investments, tax advantages, and favorable returns.
In 2022, Chinese and British investors have risen to prominence as the primary purchasers of luxury residential properties in Dubai, surpassing Indians who have historically held the top position as buyers.
Knight Frank, a renowned global real estate consultancy, reports that Indian investors ranked third in terms of property purchases in the emirate's high-end segment last year.
During the years before the pandemic, specifically in 2018 and 2019, the leading investors in Dubai were Indians, Emiratis, and Saudis. Indian millionaires, in particular, have allocated an average budget ranging from $10 to $20 million for purchasing a home in Dubai. Among them, 11 out of 15 express a strong desire to acquire residential properties in the city. These Indian high-net-worth investors anticipate an annual capital appreciation of 5 to 10 percent. Furthermore, Creek Harbour stands out as the most sought-after location for owning a branded residence in Dubai.
The comprehensive survey conducted by Knight Frank, in collaboration with YouGov, encompassed 183 high-net-worth individuals (HNWI) from around the world, each possessing a net worth exceeding $3 million, excluding the value of their primary residence. In the Indian context, the survey targeted millionaires with an average wealth of $7.1 million.
Dubai's real estate market maintains its attractiveness to global investors as it experiences robust international demand. Individuals from various parts of the world are drawn to Dubai as they seek a secure haven, tax efficiency, and favorable returns on their investments.
The depreciation of the Indian rupee against the UAE dirham, declining from 21.1 last year to 22.6 in May, has led to a slowdown in investment activities among small and medium Indian investors. However, high net worth individuals persist in engaging with the local property market to capitalize on lucrative returns.
In the meantime, British investors have shown an increased inclination towards investment, driven by factors such as high inflation and political uncertainty prevailing in their home country over the past year. Furthermore, investors from various regions of both Eastern and Western Europe have been actively seeking secure investment opportunities that offer potential for significant returns.
Based on data from Betterhomes, British nationals maintained their position as the leading investors in Dubai during the first quarter of 2023, with a remarkable year-on-year growth of 60 percent. The top 10 list of investors also included individuals from India, Russia, Italy, Lebanon, Egypt, Turkey, France, China, and the UAE.
News Source: Khaleej Times
