Dubai’s residential real estate sector, especially the luxury segment, is seeing a surge in demand from Indian business people in the wake of the second Covid-19 wave in the Southeast Asian country. Tax problems in India have also led wealthy families to move to the Gulf, industry insiders and experts said.
The favorable policies offered by the UAE government, including full foreign company ownership, remote offshore company registration, and long-term residence visas, are also influencing this trend.
“The new [UAE] Visa laws have certainly added to the demand from Indian business people that we are experiencing. This demand has been given further impetus by the newly designed property rights in companies. The UAE government has been extremely proactive in addressing the market weaknesses, ”Shajai Jacob, Chief Executive Officer – GCC of Anarock Property Consultants, told Arabian Business.
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“These laws have not only made Dubai more attractive to Indian industrialists and businesspeople, but also increased real estate demand,” said Jacob, who is also managing director and country head of ApnaComplex, a recently acquired corporate and housing management technology platform from Anarock.
Jacob said these buyers – the affluent Indian businesspeople – were more inclined to premium real estate and have shown an inclination towards areas like Palm Jumeirah and downtown Dubai.
“Indians have also contributed to shopping activity at this end of the spectrum [recently],” he said.
Jacob said her firm is also seeing increased inquiries from high net worth individuals (HNWIs) in India for real estate in Dubai.
“These demands come mainly from business people and entrepreneurs,” said the managing director of Anarock, which focuses on handling real estate investments by Indians in the United Arab Emirates.
Shajai Jacob, Chief Executive Officer – GCC at Anarock Property Consultants
Financial sector experts said there are serious moves on the part of the HNWIs and business people from India to move to countries that offer better health infrastructure and safety.
“While commercial considerations stand on one side, the recent panic in India has revealed the weak downsides of the country’s weak health infrastructure in dealing with the sudden surge in infection rates,” R Guha, a Chennai-based independent financial advisor, told Arabian Company.
“This has affected and worried the rich and the poor alike with acute shortages of hospital facilities, poor availability of medicine and oxygen.
“In contrast, a country like the UAE seems to have weathered the pandemic well with superior infrastructure and planning,” said Guha, who is also the former chief financial officer of a multinational company.
With this in mind, Guha said the UAE’s policy of attracting HNWIs and highly skilled people through long-term visas that allow full foreign ownership of businesses, along with the friendly tax laws, has increased interest in relocating to the UAE.
The affluent Indian businesspeople – leaned towards the premium real estate and showed a preference for areas like Palm Jumeirah and downtown Dubai
The affluent Indian businesspeople – leaned towards the premium real estate and showed a preference for areas like Palm Jumeirah and downtown DubaiIn addition to Indian businessmen, dozens of foreign investors in Dubai have taken advantage of the amended law on trading companies, which allows them to set up and fully own onshore businesses.
A wide range of sectors including general trade, jewelry, luxury goods, food, metals, and construction and paints have reportedly seen the rush to find wholly foreign property.
Historically, Dubai has been the most sought-after overseas property investment market for wealthy Indians, followed by London. Indian nationals topped the list of foreign investors in the real estate sector in Dubai in 2019, according to the Dubai Land Department.