Dubai is a magnet for investors from small cities, and by the end of 2024, there was a growing interest in the real estate market of places once considered unthinkable. New Delhi and Mumbai are looking favorably at Dubai due to the great investment opportunities in this enclave and its profitable returns.
In small cities in India, property prices have skyrocketed to such an extent that they now surpass those in larger cities around the world, and a residence is valued at over 50 million rupees (Indian currency). This is considered excessive in the eyes of expert investors and is one of the reasons for this heightened attention. However, a series of other factors will be outlined in this article.
Why small cities are looking favorably at Dubai
Less prominent cities in India are stepping out of their secondary roles and showing significant economic growth. For this reason, for investors from places like Delhi and Mumbai, it is important to expand their influence to destinations like Dubai, which offer fiscal and financial opportunities. The tax exemption on substantial profits and income makes this destination shine in the eyes of Indians.
This trend is supported by statistics showing that 50% of new projects were purchased by Indian entrepreneurs, with 70% coming from smaller cities. Property values in NCR and Mumbai now compete with those in major cities, so Indians see this emirate as a brilliant opportunity.
Shifting trends and fiscal structures, the features of Dubai’s market
The need to invest in Dubai and other UAE locations is also driven by the growth of the real estate market in India, where properties have appreciated by 60% in recent times. Meanwhile, the Emirati city is also coveted due to its stable returns and fiscal incentives promoted by UAE authorities. This includes the fiscal structure as a motivator for investors from these regions, escaping their home country’s high taxes.
The qualities of Dubai’s market are numerous, and its proximity to these smaller enclaves is one of the most considered by investors. The real estate market is stable and transparent, with high property demand and lucrative returns. With these characteristics, second and third-tier cities have climbed a step and become new global market players.
Latin America in Dubai, another group interested in Dubai
Moving to another area of the continent, the influence of foreign investors in Dubai is becoming larger and more prominent. This destination offers so many facilities that Latin American countries also see it as their paradise. The companies Henley & Partners and New World Wealth confirm this, showing that Colombian cities hold 45% of their wealth in investments in this emirate, followed by Argentinians (25%), Mexicans (20%), and Chileans (10%).
Many of the so-called “centimillionaires,” those with liquid investable assets of US$100 million or more, reside in Dubai. In this city, there are 212 entrepreneurs of this category, a figure that ranks it among the 50 cities where one-third of this group resides globally, surpassing Florida in the United States, which accounts for 620.
