KEY POINTS
- Indians topped the list of homebuyers in Dubai in Q2 and Q3
- They came in second in the first quarter, while British nationals occupied the top spot
- The Russian property boom in Dubai has slowed down as the ruble loses a third of its value
Indians have overtaken Britons to become the largest real estate investors in Dubai’s property market.
Indians topped the list of homebuyers in Dubai in Q2 (June quarter) and Q3 (September quarter). British nationals had occupied the top spot of homebuyers in the first quarter, while Indians were in second position, according to the Betterhomes Residential Market Report.
In addition to rising wealth, Russia’s geopolitical isolation has contributed to changing the dynamics of the market. The Russian property boom in Dubai has slowed down with a drop in purchases as the ruble loses a third of its value.
Turkey is no longer part of the top 10 list, while buyers from the Middle East and North Africa (MENA region) still remain top buyers.
“Indian and British nationals remained the two largest buyers of real estate. Russians moved out of the top 3 buyer nationalities for the first time since Q2 2022, perhaps driven by the continued decline in the ruble. Whilst Turkey moved out of the top 10, buyers from the MENA region remain prevalent, with continued growth in buyers from Egypt, Lebanon, UAE and Jordan,” the report said.
Making up the largest expat group in Dubai at 27.49%, Indians have consistently been among the top 3 nationalities to buy properties in the Gulf city since 2004. They now play an important role in shaping the real estate market of the UAE’s most populous city.
“Whether driven by end-user demand or investors seeking higher yields, Indians have been instrumental in new home purchases,” said Richard Waind, CEO of Betterhomes, a Dubai-based property consulting firm. “Russians dropped out of the top three buyers for the first time in 18 months, with the declining ruble weighing on affordability.”
“However, this was more than offset by demand from Indian and British nationals, many using property investment as a path to the Golden Visa,” Waind added.
A real estate investor is eligible for the Golden Visa if they own a property with a purchase value equal to or more than two million AED (nearly $544,530) at the time of purchase. Investors and their family members with the Golden Visa are offered a five-year residency in Dubai, which can be extendable up to 10 years.
The city of skyscrapers and ultramodern architecture continues to attract expats from across the globe. The Dubai real estate market recorded 28,249 transactions in the third quarter of this year, which was a 4% rise from the second quarter and a 23% increase from the same period last year.