Why Indian Expats Could EXPLODE Dubai Property Higher?

Dubai’s proximity to India is one of the biggest reasons to invest in real estate here. The proximity to the largest population in the world cannot be underestimated, and it’s such a massive driver of demand that not enough people talk about. In this blog, we’ll be breaking down why being located so close to India is such a massive selling point for Dubai’s real estate.

Indian Expats in Dubai – Largest Population

First of all, let’s talk about proximity. You can get to areas such as Mumbai in less than three hours. You can practically get to anywhere in India from Dubai within a four-hour time frame. Considering this is where one of the largest populations in the world lives, it makes a massive case for tourism and residency. Many people from India want to live in Dubai. This is highlighted by the fact that the expat population of India makes up 28% of the total UAE population.

In Dubai, there’s a massive middle class that includes lawyers, accountants, finance executives, and other professional services. The Indian expats in dubai population loves this country; they settle here and don’t want to move. In our experience, many Indians move to Dubai and don’t go back home, becoming long-term residents. This puts a lot of demand on real estate.

Economic Growth and Capital Flow

Next, let’s look at the macro perspective of India. Until we were doing this blog, we thought China was still the largest population, but no, Indian expats in Dubai in 2023 overtook China to be the largest population in the world. That’s 1.4 billion people living within a three to four-hour flight of Dubai. This is a significant driver of demand, especially when we start looking at the economics.

Another important point to note is that the median age in India is only 28 years old. This young population will have more earning potential in the future. Some of that money will flow into Dubai’s real estate, creating demand and leading to higher rents and prices. If you’re interested in Dubai real estate as either an investment or to purchase a home, book a call with You & House Properties.

Indian Economy Flow into Dubai

It’s not just the large population and proximity to Dubai that are important. The economics of India are another massive point. If India’s economy is growing, some of this capital will flow into Dubai’s real estate. So, how is the economy performing? If you haven’t heard, the Indian economy is absolutely booming. The GDP has been increasing by about 7% each year, which is massive. If you compare that to countries like the UK, the UK is just about positive or might even be negative right now. So, 7% is huge.

Indian expats in Dubai has overtaken the UK to become the fifth biggest economy. The UK’s economy over the next five years is expected to be relatively flat, while India’s is going exponential. This economy will continue growing because of its large population. A byproduct of this GDP growth is a growing middle class. A larger middle class means more capital, which means they can purchase more expensive things like real estate.

Expanding Middle Class – Benefits for Dubai

This graphic highlights the growing middle class. Back in 2002, the GDP per capita was only $500. By 2021, it was over $2,200. Although this number is low compared to global standards (the UK’s GDP per capita is about $46,000), the exciting thing about this low number is the potential for growth. The Indian government aims to increase GDP per capita exponentially over the next 20 years. India will be a developed nation by 2047, meaning GDP per capita will continue to increase. This graph is only going one way: up.

With more GDP per capita, there will be more capital for real estate. While much of this will be invested in India’s own economy, a significant portion will flow into Dubai’s real estate.

It struck us when making this blog that from 2000 to 2020, the story was always about China. The narrative of China being the world’s dominant economy has now shifted to India. Over the next 20 years, the focus will be on India, which has the largest population and significant GDP growth.

Long-Term Investment Potential

This is why we’re so bullish on Dubai real estate. Every broker you speak to talks about the safety of Dubai, which is important, but many other safe countries exist. There are not many developed cities within a four-hour flight of India, the largest and fastest-growing economy. Looking at the map, there are no other major developed cities in the region except for Dubai and Abu Dhabi. With the largest population within a four-hour flight and only one major city to go to if you want to travel west, this is the biggest driver of demand.

This is why you should be bullish on Dubai real estate over the next 20 years. Yes, there could be short-term corrections, but looking at the macro picture, Dubai real estate will continue growing over the foreseeable future. In summary, if you’ve been on the fence about investing in Dubai real estate, consider the macro perspective: there are 1.4 billion people with a massive growing middle class, and over the next 20 years, they’re going to want to put their money into Dubai’s real estate.

Looking for Investing in Dubai?

If you’re considering investing in Dubai real estate, now is the time to take advantage of these favorable conditions. Contact You & House Properties for more info and securing your investment in Dubai!

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