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Wealthy Indians are adding new residential addresses to their assets, many of them in Dubai.
The quality of life in the desert city is comparable to any coveted city in the world.
Its property market is regulated to protect investors’ interests.
The city offers rental yields of six to 10 per cent.
A healthy rental is assured because of the sustained arrival of expatriates.
And it offers property-linked visas.
No wonder, Indians spent Rs 35,500 crore to own Dubai homes in 2022.
Danube Group, a UAE-based developer, says nearly half of all properties it sold in 2022 were bought by Indians.
In Mumbai, property prices in prime localities have left Dubai behind.
According to the Danube Group chairman, Rizwan Sajan, who also has an office in Mumbai, properties between Andheri and Santa Cruz area are being sold at Rs 50,000 to Rs 1 lakh per square foot.
The Knight Frank Dubai Destination Report says that residential properties in many places in the city — among them Dubai Science Park, Jumeirah Village Circle, International City, and Jebel Ali — are available for Rs 11,000 to Rs 33,000 per square foot.
So, what makes Mumbai pricier than Dubai?
“Mumbai remains the financial capital of India.
"And therefore the residents can afford to pay high rates for luxury properties,” says Gulam Zia, senior executive director, Knight Frank India.
The increase in the property prices in Mumbai has not dampened demand.
Data from Anarock research suggests housing sales in the city have gone up by 48 per cent in the second half of 2022-23 compared to the same period the previous year.
“The demand is still high, that is why developers are able to command high prices,” says Gunjan Goel, director, Goel Ganga Developments.
“I do not see prices dropping any time soon.”
Mumbai ranks sixth among 46 cities globally in terms of annual price growth of high-end residential properties, a sharp jump from 38th last year.
Clearly, the demand is outstripping supply and people are ready to pay the price.
