Dubai’s real estate sector is largely dependent on high net-worth Indians. And now as the world prepares for a post-Covid phase, a large number of Indians are once again eyeing Dubai’s property market.
Since 2017, Indians have ranked amongst the top three nationalities investing in properties in Dubai, a study by Anarock, a real estate consultancy firm said. Dubai’s real estate sector contributes handsomely to the country’s GDP and “is a reliable indicator of the overall economic scenario of the nation,” it said.
In 2019 just before the outbreak of the Covid 19 pandemic, Indians contributed 16 per cent of the housing sales – in terms of volume—in Dubai. "Dubai has always attracted Indians and many HNIs have invested in homes there. This is also one way to get a residency permit in the UAE and therefore many have opted to buy properties there," an analyst said.
In 2019, real estate contributed 7.2 per cent to Dubai’s GDP. With supply being highly regulated since the pandemic, the increase in demand will keep property prices on the upward trajectory for the foreseeable future.
In January 3,300 property transactions took place – an increase of 37 per cent in volume from the corresponding months in the previous year. In April, 4832 transactions took place making it the best month for property sales in Dubai since March 2017.
The Dubai real estate market is highly regulated. Investors are protected by, and the developers are accountable to, a strictly implemented Real Estate regulation Authority.
Buoyed by a rebound in tourism and quick distribution of vaccines, business activity in Dubai is fast approaching pre-pandemic levels, the study said.