More and more affluent Indians are diversifying their real estate portfolios, and one destination that's gaining popularity is Dubai. The reasons for this shift are manifold. Dubai offers a quality of life comparable to other global cities.
With a highly regulated Dubai real estate property market that safeguards investor interests. Also, the Dubai rental yields ranging from six to ten percent and provides various property-linked visa options. In 2022 alone, Indians invested a staggering 35,500 crore rupees in Dubai's real estate market.
According to the Danube Group, a pioneer in affordable housing, a significant portion (45-50%) of residential properties sold in 2022 were purchased by Indians. The appeal lies in the affordable prices and superior amenities offered by properties in Dubai.
Fully furnished units ranging from 400 to 500 square feet are available for approximately 1.45 crore rupees, with attractive rental returns fueled by a steady influx of expatriates.
However, despite Dubai's allure, property rates in prime localities of Mumbai surpass those in the desert city. Properties between Andheri and Santacruz command prices ranging from 50,000 to 1 lakh rupees per square foot, outstripping rates in Dubai's lowest bracket, which range from 11,000 to 33,000 rupees per square foot in areas like Dubai Silicon Park, Jumeirah Village Circle, and International City.
Mumbai's distinct advantages, such as its status as the financial capital of India and its historical significance as an island city, contribute to its premium property prices. The skyrocketing land values in Mumbai's prime areas have a ripple effect, impacting property rates across the city. Even affordable housing in Mumbai comes at a steep price compared to other parts of the country, with few options available below 25 lakh rupees.
Despite the steep prices, demand for housing in Mumbai remains robust, with housing sales increasing by 48% in the second half of FY 23 compared to the previous year. This sustained demand allows real estate developers to maintain high prices, positioning Mumbai as the sixth-ranked city globally for annual price growth in high-end residential properties.
Finally, according to Upcoming Projects Mumbai property market continues to thrive despite escalating prices, driven by high demand and limited supply. As demand persists, prices are unlikely to drop anytime soon, solidifying Mumbai's position as a prime destination for real estate investment.
