Why middle-class Indians prefer Dubai to India for buying property, explains CA

India Today

12 hours ago

More and more middle-class Indian couples are increasingly building retirement wealth, not in India, but in Dubai. Indians in the UAE are investing in multiple properties and earning rental income, thereby turning real estate into a smart retirement plan, without overburdening themselves, said Bengaluru-based CA and startup founder Abhishek Jamuar.He wrote on LinkedIn, "Sorry to say, but Dubai's Indian buyers are smiling wider than India's. In Dubai, there are a lot of Indian couples who have bought 2–3 properties. And just for the record: I am not talking about the affluent class. I'm talking about normal, working-class couples who worked hard, saved money and put 10 to 15 years into their career to make their future life easy."
advertisementHis message is clear: middle-class Indian buyers are doing better in Dubai than in India.DISTINCTIVE FINANCIAL MODELS
In Dubai, many middle-class Indian couples have managed to purchase two to three properties by saving meticulously over the years. These properties, which offer rental yields of 6–7%, are financed at an interest rate of just 5%, creating sustainable assets that serve as both income sources and retirement plans.Jamuar mentioned the advantages of this model, noting the relief felt by investors "not burdened by the EMIs." The ability to generate income while securing a future nest egg is a major draw for these investors, providing them with a sense of financial security and stability.INDIA: ONE HOME, HIGH EMIs, LOW RETURNSBack in India, the situation is markedly different. Middle-class couples typically acquire just one home, borrowing at a higher rate of 10% and receiving a mere 3% in rental yields. Jamuar pointed out the financial pressure this creates, saying, "One person's entire income keeps going into EMIs."advertisementIn this scenario, property ownership becomes a financial burden rather than an asset that secures one's future. The high interest rates and low returns make it difficult for families to build wealth, often leading to financial strain and limited savings, which can hinder long-term financial planning as "one person's entire income keeps going into EMIs," he added.Jamuar's key message was about the model. Dubai offers a system that allows more freedom, more savings, and better cash flow. India's home-buying system, on the other hand, often locks families into long-term debt.'The burden that comes with buying a property in India, and the freedom that comes with buying a property in Dubai, that's the difference,' he wrote. In the end, it's not just about owning a home. It's about living without stress, and retiring with a smile.- EndsMust Watch