Dubai Property Market: Higher returns and attractive rental yields compared to India – Investing Abroad News

Dubai is a popular real estate destination for foreign investors. In an exclusive interview with Financial Express Online, Sumit Pathak, CEO of Linus International FZCO, Dubai, discusses Dubai property prices in comparison to major Indian cities, return on investment on properties in India vs Dubai, rental attractiveness, and, most importantly, how income tax benefits attract global investors to Dubai.

How are Dubai property prices compared to Gurugram, Mumbai, Hyderabad, and Bengaluru?

Dubai’s property prices are generally competitive with Indian cities, though it depends on the neighborhood. A 2,500 sq. ft. apartment in Dubai can cost AED 15- 3.5 million, while Mumbai’s prime areas go up to AED 1500 per sq. ft. Gurugram has seen a sharp rise to AED 800+ per sq. ft., and Hyderabad and Bengaluru have more moderate increases. Overall, Dubai offers better value for its world-class infrastructure and amenities.

How do you compare the return on investment on properties in India vs Dubai?

Dubai provides higher rental yields, ranging from 7% to 11%, while Indian cities like Mumbai or Bengaluru typically offer 2-4%. For instance, an AED 2 million (₹5 crore) investment in Dubai could generate AED 170-200K (₹40-50 lakh) annually, compared to AED 40-80K (₹10-20 lakh) in Indian cities. Additionally, Dubai’s tax-free regime amplifies returns significantly compared to India’s taxable rental income.

How attractive are rentals on residential and commercial properties?

Rental yields in Dubai are exceptional, especially in high-demand areas like Downtown, Business Bay, or Marina, ranging from 8% to 11%. Indian cities lag with 2-4% yields. Commercial properties in Dubai also thrive due to robust demand and a global business hub appeal, outperforming Indian metros where oversupply sometimes limits rental growth.

Which cities in Dubai currently offer the most promising real estate investment opportunities?

Dubai Marina, Downtown, Business Bay, Jumeirah Village Circle, and Palm Jumeirah stand out for residential investments. They combine premium infrastructure, lifestyle appeal, and strong rental demand. For commercial investments, DIFC and Business Bay attract multinational companies, driving consistent growth.

What makes Dubai an attractive destination for global citizens from the income tax point of view?

Dubai’s tax-free environment is a significant draw. No income tax, property tax, or capital gains tax makes it an investor’s paradise compared to India, where taxes can eat into rental and resale profits. This fiscal advantage ensures more disposable income and better overall returns.

Any other compelling factor that makes Dubai an attractive real estate option for global investors?

Dubai’s investor-friendly policies, such as Golden Visas, advanced infrastructure, world-class safety, and strategic connectivity to global markets, add to its allure. The city’s stable currency pegged to the US dollar, provides additional confidence for international investors. Moreover, Dubai’s diverse expat community fosters a global lifestyle unmatched by most cities.

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