High Returns and Quality Living Draw Indian Capital to UAE and Europe's Real Estate

Wealthy Indians are increasingly channeling their investments into real estate markets in the UAE and Europe, driven by the allure of high rental yields and enhanced lifestyle options. This investment trend is underscored by robust annual price growth and strong demand in these regions, alongside favorable immigration policies like the Golden Visa program.

High Yields and Strong Market Growth

The UAE, particularly Dubai, stands out with rental yields soaring between 9-10 percent, outpacing the more modest returns of 4-5 percent typically found in European markets. Despite real estate prices in the UAE climbing at a remarkable rate of 16-19 percent annually, the investment appetite remains unwavering, spurred by solid diplomatic relations and a growing fascination with the Emirates. Meanwhile, European destinations such as Greece, Cyprus, Malta, and Spain are also drawing significant attention for their real estate prospects, especially for those seeking immigration benefits.

Surge in Indian Real Estate Investments Abroad

Data from the Reserve Bank of India (RBI) highlights a significant uptick in Indian investments abroad, with remittances for purchasing immovable properties reaching Rs 240.2 crore in December 2023. This marks a substantial increase from the previous year and underscores a growing trend of cross-border real estate investment among Indians. The allure of the Golden Visa, offering a pathway to residency or citizenship through investment, has particularly captivated Indian investors, positioning them prominently among the top investors in Dubai's real estate scene.

Comparative Affordability and Investment Sizes

Investments in Dubai's real estate are noted for their attractive returns, with the average investment size ranging between Rs 4-4.5 crore. These investments not only offer lucrative rental yields but also provide opportunities for short-term rentals with even higher returns in prime locations. Comparatively, property prices in emerging Emirates like Sharjah and Abu Dhabi offer more affordability than prime Mumbai locales, presenting a compelling proposition for investors seeking value and returns.

Golden Visa and Global Citizenship

The Golden Visa programs across various countries, requiring investments in real estate among other options, have emerged as a key driver for Indian investments abroad. These programs not only facilitate residency and potential citizenship but also open up avenues for Indians to diversify their investment portfolios while enjoying the lifestyle and financial benefits associated with property ownership in prime global locations.