Dubai’s real estate market has become increasingly attractive to Indian investors due to its strategic location and ongoing infrastructure developments. The demand for luxury properties has surged, with many Indians looking to invest in Dubai. Factors such as a favorable tax environment, modern infrastructure, and attractive rental yields have contributed to this growing interest.

In an exclusive interview with ET NOW, Vivek Oberoi, the Managing Director and co-founder of BNW Developments, highlighted that many investors are focusing on prime locations in Dubai. He noted that the introduction of long-term visas and strong rental yields have made the city a preferred destination for Indian investors seeking to diversify their portfolios and secure assets abroad.

Oberoi emphasized the unique appeal of Dubai by stating, “Dubai is the only place in the world where you have people from over 160-170 countries reaching out. In BNW, we have buyers from 100+ countries, they reach out to us, they keep wanting to buy units there and I think that is what special about Dubai. Dubai is an investor friendly place and that’s why people want to buy in Dubai.”

He identified three key reasons driving Indian investors toward Dubai’s real estate market. The first is the absence of capital gains tax, allowing investors to benefit from income generated by their assets without the burden of taxes. Oberoi explained that properties yielding an 8% return could see double-digit yields when leveraging, with Dubai’s property market offering yields between 13% and 14%.

The second reason is capital appreciation. Oberoi pointed out that the pegging of the Dubai dirham to the US dollar means that as the dollar appreciates, investors can gain an additional 5% per year. This feature enhances the appeal of holding dollar-denominated assets.

Finally, he mentioned the low cost of debt in Dubai’s real estate market, where investors can access 70% to 80% financing. With decreasing debt costs, ownership becomes more affordable, making Dubai a compelling market for real estate investment.