Indian real estate investment in the UAE and Europe soars amid high rental yields

Due to immigration schemes like the Golden Visa and appealing rental yields of more than 7%, Indian investments in foreign real estate, particularly in Europe and the United Arab Emirates, have increased dramatically, according to Propertywala. It’s happening at the same time the UAE’s real estate prices are growing at 16-19% annually. 

Investment in real estate

Indians sent out Rs 240.2 crore in December 2023 to buy real estate overseas, according to RBI data. Comparing this to Rs 206.8 crore during the same period last year, there was a noticeable increase. Similarly, FY23 saw remittances of Rs 2,714 crore, up 38% from Rs 1,961 crore in the previous year. 

Immovable property in the real estate market consists of factories, warehouses, residential buildings, and manufacturing spaces. 

The demand for real estate among European nations experiencing immigration are Greece, Cyprus, Malta, and Spain. 

According to Ritiesh Mehta, Senior Director at Jones Lang LaSalle, “the application process for Golden Visa programs takes about 3-4 months, with investors anticipating citizenship within 5-7 years,” Moneycontrol was informed by Mehta.  

Golden Visa offers residency or citizenship to individuals who invest in government bonds, real estate, or other approved vehicles. 

Rental Profits

India emerged as one of the top investors in Dubai, with cumulative investments of $335 million across 123 projects during the first half of 2023, according to data from the Dubai Land Department, as cited by international real estate consultant Vestian.

Depending on the location and size of the property, the average investment ticket size in Dubai is between Rs 4-4.5 crore, according to Property Junction consultant Vijay Sawlani, who works in Dubai. Generally, the rental yields fall between 7 and 9 percent; however, in desirable areas like Downtown or Business Bay, the short-term rental returns can reach 11 to 13 percent. 

A minimum investment of 2 million dirhams, or roughly Rs 4.5 crore, is required to obtain a Golden Visa for Dubai for five to ten years. 

“Property prices in Dubai’s newer emirates like Sharjah, Ras AI Khaimah, and Abu Dhabi range Rs 25,000-35,000 per square foot, which is more affordable,” Vijay Sawlani told Moneycontrol. “Property costs in upscale Mumbai neighborhoods like Andheri vary from Rs 38,000 to Rs 45,000 per square foot.  

According to Moneycontrol, rental yields in Sharjah and Abu Dhabi range from 6 to 8%, with Dubai offering the highest yields at 9 to 10%. 

Investing in Europe

 An investment of about Rs 4-8 core is needed to be eligible for permanent residency in countries like Greece, Cyprus, Malta, and Spain. According to Moneycontrol, these locations typically have a 4-5% rental yield. 

According to the study, entry-level investments in Europe range from Rs 2.5 crore in rural areas to Rs 8 crore in cities. One of the least expensive residency programs is available in Greece, where popular locations include Athens, Thessaloniki, Mykonos, and Santorini.  

High net worth individuals are the primary target market for other countries such as the US and UK, which have lower rental yields of 3.5-4% and require larger ticket sizes ranging from Rs 8 to 20 crore. 

Real Estate Remains Smarter Investment: Say UAE NRIs

The present statistics show that real estate is termed as one of the most favorite investment options.  NRIs who reside in UAE agree with this.

Fall of Indian rupees drags the NRI investment in India. Most of the NRIs   invest on properties. Sumansa Exhibitions’ survey revealed that 89% of the NRIs of UAE invest in real estate. Continue reading

39th Position of India in retailer’s global favorite places

Although countries like China and Britain are ahead in the race but India has still managed to acquire 39th position in the favorites list of retailers in the world.

In 2008, the CB Richard Ellis (CBRE), a real estate consultancy conducted a survey in which India was ranked as the 44th preference of retailers. It is an appreciable growth of 5 ranks in just 2 year s. This survey was called ‘How Global is the Business of Retail?’

This survey conducted by CBRE is an annual survey which involves around 294 top retailers of the world across 69 countries. Britain acquired 1st position in the list, followed by the UAE, the US, France and China.

The chairman and managing director of CBRE, Anshuman Magazine said that since the last year’s survey, the growth of Indian retail market is commendable. However, the recent global economic crisis has slowed down the activities since it led to delay in completion of retail projects.