Why Are The NRI’s From The UAE Taking Their Money To India?

If you needed to survey the investing habits of the NRI’s in the UAE, you’d need to ask at least 14,600 people to get a representative sample of their preferences.

Taking a sample that big is exactly what the Gulf’s Times Emirates correspond sales did last year to discover that Indian property remains to be the favorite investment option of Indian Expats looking for opportunities from the Emirates.

But, why are they going to India?

Whether the tides are high or low, Indians from the UAE are and have been for years, the most significant contributors to the development of the Indian Real Estate market.

This represents a curious phenomenon if one takes into account that the second favorite option of Indians in the UAE is investing in Dubai, which presents a lot of advantages for investors than major Indian cities, like Mumbai or Delhi.

Other advantages of investing in this city also raise questions about the enthusiasm NRI’s print into their investments back home, such as the growing competition between the builders in Dubai, which tends to drive prices down for investors. This, when met by the incredible easiness of the procedure for buying and selling properties, has raised many eyebrows about the eagerness of UAE NRI’s in investing back home.

However, there’s a specific pattern that may explain the reasons behind this.

Mangalore and Bangalore, the keys.

NRI’s from all over the world have learned from these two cities’ development, particularly Bangalore’s growth as the “Silicon Valley of India”, and they are a perfect example of the reasons Indian Expats seem to always be on the look for buying properties in India.

First becoming popular for their wide offer of properties to buy, as developers were rushing to fill the space that was just about to be occupied by the “tech immigrants” NRI’s from the UAE saw an opportunity in this cities to buy luxury property that both represented a better value for their money and an excellent retirement option.

An extensive catalog of properties to pick from, and a good currency conversion have always been attractive options for investors, but an absolute deal-breaker for NRI’s has been appreciated, as there was another thing these cities offered to buyers that Dubai couldn’t.

This, alongside the still abysmal differences in the costs of luxury property (which is the most demanded type of property NRI’s in the UAE purchase in India) in the two countries, joins the current state of the rental property. As immigration rates grow in the massive tech hubs of India, so does the prospect of a substantial return on investment.

However, there’s still another reason “Arabic” NRI’s even take their money to India.

In India, growth is king.

In our article on the builders of India’s top tech cities, we talk about how much properties have appreciated in the states that see the most tech-driven progress. For example, just in Mangalore, a 46% appreciation for the communities with the top developers was found out to be commonplace. All of this due to the boom in the tech industry, and resulting in desirable opportunities for NRI’s.  

Following Mangalore and Bangalore examples, investors have soon discovered that many cities in India are about to go into similar transformations, which will, therefore, push the value of properties higher. In fact, we’ve written an article about it.

Citing places like Kochi, Indore and Pune like the growth leaders of India as future tech economies, is no wonder why Expats in the UAE prefer to see their money turn into faster and highest growing investments of better quality, rather than opting for local investments.  

Given the amount of capital that they’ve invested in India, and the growth rate of those investments, it wouldn’t be surprising to find NRI’s from Dubai and the rest of the UAE practically dominating the property market.

Are you an NRI from the UAE that’s looking for property to buy in India, or even to sell? We invite you to check our platform, Reobee, where you can find exclusively other NRI’s close to you to make deals.

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