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Dubai's property market, renowned for its affordability, has seen a significant boost in sales to Indian investors, according to Danube Group, a key player in the region's cost-effective housing segment. The group has reported a 30% uptick in property purchases by global Indians following the pandemic, with many investors drawn by the competitive prices and lucrative rental returns, particularly compared to suburban areas in Mumbai.
Rizwan Sajan, Founder and Chairman of Danube Group, shared that close to half of their residential property sales in 2022 were attributed to Indians residing not only in the UAE but also in the US, Canada, and other GCC countries, along with India. He noted that Indian investors living within the country made up a quarter of the total sales.
Drawing a comparison between the property markets of the two cities, Sajan explained that prime Mumbai suburbs, such as Santa Cruz and Andheri, offer properties at approximately INR 50,000-100,000 per square foot. Meanwhile, luxurious, fully furnished properties in Dubai's prime locations are priced at an enticing INR 34,000-60,000 per square foot. These properties are accompanied by a plethora of amenities, including sports centres, theatres, gyms, swimming pools, and restaurants.
In addition, Danube Group's rental services arm offers an impressive 6% return on investment after all service charges, which is a stark contrast to Mumbai's 1-1.5% return rate. They ensure this by renting out the property for short periods on behalf of the owners.
Capitalizing on this trend, Danube has been organizing property roadshows in Indian cities like Mumbai, Delhi, and even smaller towns such as Bhubaneswar and Srinagar. Sajan, originally from Mumbai, entered the market when it was dominated by luxury developers. Identifying a niche for expats and local residents eager to own property, Sajan targeted his offerings at the 80% of individuals who were renting. His focus has been on affordable, fully furnished homes of around 400-500 square feet, priced at about INR 1.25 crore.
Sajan developed a convenient 1% per month payment plan, which only required a 20% down payment. This was based on the assumption that most expats could afford the upfront cost. With the post-pandemic surge in real estate, Danube is now enjoying the fruits of this growth.
In conclusion, the Dubai property market has emerged as a profitable investment avenue for Indian expats and residents. The affordability, superior returns, and luxurious amenities offered by properties in Dubai are compelling reasons for investors to choose it over the suburban Mumbai market.
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