In a significant shift within the Dubai real estate landscape, Indians have emerged as the leading investors, surpassing Britons in the latest quarter, according to the Betterhomes Residential Market Report 2023. This quarterly revelation highlights the dynamic changes in the preferences of homebuyers and the evolving trends in the Dubai property market.
The Rise of Indian Investors: The report unveils that Indians claimed the top spot in real estate investments during both the second (Q2) and third (Q3) quarters of the year, overtaking Britons who held the position in the initial quarter. This shift in the pecking order signifies the increasing prominence of Indian nationals in the Dubai real estate scene.
Market Dynamics: Dubai witnessed a substantial surge in real estate transactions, recording 28,249 transactions in the third quarter alone. This marked a 4% increase compared to the second quarter and a remarkable 23% rise from the same period in 2022. The driving force behind this growth was a notable 34% increase in villa and townhouse transactions, while apartment transactions experienced a marginal 4% contraction.
Changing Buyer Nationalities: The report not only highlighted the ascendancy of Indian investors but also noted the decline of Russians in the top three buyer nationalities for the first time since Q2 2022. The report suggests that the diminishing value of the ruble played a role in this shift. Meanwhile, Turkey dropped out of the top 10, making way for continued growth in buyers from the MENA region, including Egypt, Lebanon, UAE, and Jordan.
Factors Influencing the Shifts: Richard Waind, CEO of Betterhomes, attributed these changes to the growing wealth of Indian and British nationals. Simultaneously, Russia’s geopolitical isolation, coupled with the declining ruble, contributed to Russians moving out of the top buyer nationalities. Waind emphasized the allure of Dubai for expats worldwide, with the population increasing by nearly 100,000 in the year to July.
The Golden Visa Advantage: A pivotal factor contributing to the real estate boom is the UAE’s ‘Golden visa.’ This long-term residence visa offers exclusive benefits, such as entry visas, long-term renewable residence visas, the ability to sponsor family members, and the allowance to stay outside the UAE for extended periods. Notably, owning a residential property worth 2 million dirhams (Rs 4.5 crore) qualifies individuals for this coveted visa.
Luxury Market Flourishes: The Betterhomes report also shed light on the thriving luxury market, witnessing transactions over $4.83 million reaching record levels, with a remarkable 44% surge compared to Q2. The secondary market played a pivotal role in this growth, experiencing a substantial 66% increase. Anticipating the attraction of 4,500 new millionaires in 2023 and the launch of high-end off-plan projects, including Palm Jebel Ali, the report foresees continued growth in the luxury real estate sector.
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