Recent figures indicate that Indian investors accounted for 20% of all real estate transactions in Dubai in the first quarter of 2023, investing nearly two billion dollars (7.3 billion dirhams) during the period.
Dubai’s real estate sector has seen a boom in investments from India, as of July 1, the start of a 4x doubling of taxes on foreign remittances from India is fast approaching.
Industry experts expect strong investment flows from India into Dubai’s real estate sector to continue ahead of the introduction of the 20 percent tax from July 1. On February 1, India announced an increase in tax on foreign transfers from 5% to 20%, excluding transfers related to educational and medical purposes, in the context of budget talks 2023-2024.
favorite place
Dubai has always been a favorite destination for Indians. According to data from the Dubai Land Department, Indian investors accounted for 20% of all real estate transactions in Dubai in the first quarter of 2023, up from 15% in the same period last year.
The total value of Indian investments in Dubai real estate in the first quarter of this year was estimated at 7.3 billion dirhams (about two billion dollars), Hedge & Sachs founder Shivansh Rashid said. This time, he said, the increase in Indian investments in real estate in Dubai was driven by various investors for various reasons.
He explained: Businessmen are attracted by Dubai’s business-friendly environment and its strategic location as a gateway to the Middle East and Africa. The wealthy are attracted by Dubai’s luxurious lifestyle and strong real estate market, while professionals are attracted by Dubai’s job opportunities and high salaries. He expected Indian investments to increase further.
Senior officials from other real estate-related companies also confirmed the increase in investments from India following the announcement to raise tax on foreign remittances to 20%, and the trend is expected to continue till July 1. Adel Akhtar, founder and CEO of Dubai-based real estate investment firm Foremen Fiefdom, said: “We expect the current surge in Indian investments in Dubai real estate to continue for the next few months, and even throughout the year. Well.”
Akhtar said, “Dubai – and some foreign destinations – are becoming increasingly popular destinations for Indian investors as these destinations offer lower tax rates, a more business-friendly environment and a more luxurious lifestyle than India.
Shazai Jacob, Dubai-based managing director and country head of Anasid, the group business services arm of real estate consultancy Anarok, said no information on remittances has yet been disclosed by Indian authorities. Increase in remittances and investments before first July.
He pointed out that the increase in transfer tax should not be taken as a negative or a strong deterrent for potential investors. Therefore, after July 1, we do not expect a significant reduction in tax rates or remittances from individuals investing in real estate. Shazai Jacob, managing director and regional director of Apnacomplex, a joint venture of apartment management company, security solutions company and Anaroq, said: “Indian investors are increasingly interested in buying apartments and villas in Dubai. He explained that the villas are very popular with rich people looking for a luxurious lifestyle. Apartments typically cost between 1 million and 5 million dirhams, while villas purchased by Indian investors range from 5 million to 20 million.
Indian Rich
On the other hand, “Sisad Daily” website confirmed that the UAE’s measures to get golden residency visas contributed to the arrival of wealthy Indians to Dubai and their investments in the emirate’s real estate market.
During the period from 2015 to 2021, Indian investors contributed about AED 83.62 billion to Dubai’s real estate market, the site pointed out in a report. By 2027, expectations indicate that the number of wealthy Indian investors will increase by 107%, and this increase is expected to continue as the real estate market is expected to reach 300 billion dirhams in sales transactions by the end of 2023. Apart from Indians, UK, Italy and Russia are the best countries to buy property in Dubai, he emphasized.
Unique founder and CEO Arash Jalili said the UAE has seen tremendous economic growth over the past decade and it is expected to continue with Dubai. The year is 2023.
The site highlighted the golden visa program for the wealthy, which allows them to obtain residency in the country if they invest in their area of residence and meet a number of requirements, prompting the UAE to introduce integrated digital. A platform for acquiring residency through investment.
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