Indian Buyers Dominate Dubai Market: How Agents Can Capture This AED 30 Billion Opportunity
Indian buyers are the most sought after foreign investors in Dubai real estate, holding accounts for a staggering 1 in 5 of property deals. Their investments in the emirate so far this year alone stand at over AED 30 billion and their appetite for buying continues to look to deliver on the much sought after yield, although lately they are increasingly on the lookout for family homes to buy in up-coming locations with potential like areas with a mid to premium offering. The increase in popularity of the Golden Visa for those that have a minimum of AED 2 million+ to spend on real estate, has also been highly cited in their purchasing decisions.
Dubai offers Indian investors a big advantage when it comes to investment in rental income and capital gains, because the Middle East hub is tax-free. Rental yields in the real estate market hover between 6% to 9% in Dubai, which is way higher than the returns that India’s major metropolitan cities like Mumbai and Delhi can offer. Another reason why Indian nationals would love to be based out of Dubai is the huge Indian community, which stands at 3.5 million.
While the superaffluent Indian buyer may remain fixated on certain hotspots, not every Indian buyer is in the market for luxury properties with Dream Homes to Forever Homes range targeting specific neighbourhoods to suit. Families looking to purchase a permanent residence in the UAE are focused on schools, culture specific infrastructure and Indian way of life friendly locations and areas, while looking for decent yields. This allows them to opt for mid range inventory in locations such as Jumeirah Village Circle, Dubai South, and Discovery Gardens. On the other hand, the High Net Worth Indian is looking to invest in branded residences and luxury standalone villas in Downtown Dubai, Dubai Marina, Dubai Hills Estate, and Arabian Ranches.
A lot of agents just look on the Dubai based portals for leads without realising that the Indian buyer is already searching online before they even shortlist properties to visit from India. A great platform for sale listings would be one that has real time listings and is viewed in both markets, eg. properties.market. This would allow the agent to be “in the room” and be the first to engage the buyer before others even show them properties to view. This is especially critical. A simple oversight such as not having a clear rental yield or Golden Visa eligibility on a listing means that the buyer will choose an alternative property to purchase, losing the deal for the agent.
We remain cautious about simplistic ‘Indian buyers’ messaging. The mix of motivations and requirements will vary across individuals and groups, requiring a more nuanced approach than simply targeting at Indian buyers. Those expecting to include messaging about family housing and / or returns on investment from their property investments will find that failing to address these concerns may mean missing out on valuable leads. While the Indian market will remain a priority for early education in the years ahead from the UAE, it is not confined to Dubai.
Practical Takeaways for Agents and Investors:
- Include rental yields in advertisements to appeal to return on investment-conscious buyers.
- Show the Golden Visa aspect clearly for those properties that are eligible (above AED 2m) - This is a key point for potential buyers.
- Communities with relevant Indian family offerings such as proximity to CBSE/ICSE schools and other Indian cultural amenities.
- Provide the costs and fees associated with the property such as the INR equivalent of the price and rental yield in relation to Indian cities. This will show that research has been conducted into the local market and will assist in eliminating any last minute jitters potential buyers have.
- Advertise your properties to potential buyers in both UAE and India to increase visibility and build trust.
FINAL TAKEAWAY:
Remember, in the property market, Indian buyers represent a big slice of demand. They cannot be ignored in today’s market. It is critical to understand the varying profiles within this large buyer segment and address their needs much before they even get to Dubai to purchase properties.
