Expert Eye: Dubai's appeal to Indian investors

Expert EyeMohanad Alwadiya

Many Indian investors are expected to flock to the International Property Show at the Dubai World Trade Centre on April 11-13. Being the top Dubai property investor segment based on nationality, investing more than Dh20 billion in 2015, the Indian expat community has had a long-standing relationship with the emirate (and the rest of the UAE) in terms of business and real estate.

Why is Dubai property popular with the Indian people? The reasons of-fered essentially summarise why investing here has had a significant appeal not just for Indian investors but for other investors as well.

Ease and efficiency
Compared to most countries, investing in Dubai real estate is easy. Enlist a reputable brokerage, select your property, negotiate a price, write the necessary cheques and the property is yours. As long as you follow procedural requirements, your transaction will be processed efficiently.

Superior value
Compared to major cities, Dubai offers better value. A modern infrastructure continually being developed, a renewed focus on affordable housing and world-leading rental yields – the value inherent in Dubai property is hard to beat.

Tax-free rental yields
There are not many real estate markets in the world where an investor can enjoy an average 7 per cent yield without paying local taxes. The rent that you charge your tenants goes straight into your wallet. And with the cost of finance remaining reasonably low, the interest charge on any borrowings you may have will be easily covered by the rent, leaving more free cash flow to pay your principal.

No capital gains tax
Capital gains are not taxed upon disposal of the asset which makes investing in Dubai property a lucrative addition to any portfolio. From a total returns point of view, there are few better real estate investments than Dubai property.

World-class infrastructure and security
Investments that provide lucrative returns are normally associated with excessive risks. This is not the case in Dubai. Its focus has been on developing a world-leading infrastructure for the benefit of commerce, trade, tourism and habitation. The remarkable progress that has been made in opening the emirate up for business, implementing the physical, digital and logistical infrastructures, legal framework and economic policies in the post-recession period, has been pretty impressive.

Strong global brand
Dubai as a real estate and commercial hub has captured the imagination of the world and there is no better barometer of this than its burgeoning tourism industry. Investments in economic revenue-generating sectors like entertainment and hospitality have ensured it is being included in the bucket lists of travelers.

Economic entrepreneurialism
Dubai excels in the area of economic entrepreneurialism. Well known for conducting globally attended exhibitions, there is no greater example than the upcoming Expo it will host.

Cosmopolitan society
Once a pit stop for expats that fulfilled employment contracts of limited duration, more people have decided to settle down here. This change in outlook has had a dramatic effect on the stability of the property market and the development of a society that, while incredibly diverse, is more committed to the development of the emirate as a long-term lifestyle solution.

While there has always been a strong Indian community, other communities representing other nationalities are developing rapidly, making it easier for new expats to make Dubai home.

History has proven that strong nations were built upon such diversity. Armed with this knowledge and the resources it has been so richly endowed, Dubai continues to forge onward with a vision of better things to come.

Source: Mohanad Alwadiya, Special to Properties
CEO, Harbor Real Estate


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