Indian Real Estate Set to Gain as UAE Visa Changes Shift Investment
The UAE's recent changes to its Golden Visa policy are expected to cool speculative buying in Dubai's real estate market, redirecting capital to India's Tier 1 and 2 cities. Industry experts weigh in on the implications.
Real EstateGolden VisaUaeIndiaInvestmentReal Estate NewsJul 08, 2025
UAE's Golden Visa norms, which now de-link mandatory investment in real estate or business from long-term residency, will cool speculative buying in mid-market and entry-level property segments in the country, especially Dubai. However, Indian real estate stands to gain from the redirected capital, primarily in Tier 1 and 2 cities, said industry watchers.
“This policy shift may seem like a pullback for the UAE’s real estate sector, but it’s actually steering investors toward smarter choices,” said Ravi Shankar Singh, Managing Director, Residential Transaction Services, Colliers India, in an interview with Business Standard.
By decoupling residency from mandatory property investment, the UAE is encouraging a more sustainable and diversified approach to attracting long-term residents. This change is likely to reduce the influx of speculative buyers who were primarily interested in property as a means to secure residency. As a result, the demand for real estate in Dubai and other UAE cities may stabilize, leading to a more balanced market.
On the other hand, this redirection of capital presents a significant opportunity for the Indian real estate market. India’s Tier 1 and 2 cities, known for their robust economic growth and expanding infrastructure, are expected to attract a substantial portion of this capital. These cities include major urban centers like Mumbai, Delhi, Bangalore, and emerging markets like Pune, Hyderabad, and Chennai.
“The Indian real estate market, particularly in Tier 1 and 2 cities, is well-positioned to benefit from this shift,” added Singh. “The combination of favorable government policies, improving infrastructure, and a growing middle class makes these cities attractive destinations for both domestic and international investors.”
Moreover, the Indian government’s initiatives to boost the real estate sector, such as the Real Estate (Regulation and Development) Act (RERA) and the Pradhan Mantri Awas Yojana (PMAY), have further enhanced the attractiveness of the market. These policies aim to bring transparency, accountability, and affordability to the sector, making it more appealing to a broader range of investors.
In addition to the policy changes, the ongoing economic recovery in India, driven by robust consumer demand and a favorable business environment, is another factor that is likely to attract investment. The Indian economy has shown resilience in the face of global challenges, and the real estate sector is expected to play a crucial role in driving this growth.
However, industry experts caution that the shift in investment patterns should be managed carefully to avoid creating new bubbles in the Indian market. “While the influx of capital is positive, it’s important to ensure that it is directed towards sustainable and long-term projects,” said Singh. “This will help maintain the health and stability of the market.”
In conclusion, the UAE’s Golden Visa policy changes are set to have a significant impact on the global real estate landscape. While the UAE market may see a cooling effect, India’s real estate sector is poised to gain, particularly in its Tier 1 and 2 cities. This shift presents a unique opportunity for both investors and developers to capitalize on the growing demand for quality real estate in India.
Colliers India is a leading real estate services and investment management firm, providing a wide range of services including residential and commercial property management, investment advisory, and transaction services. The company operates across major cities in India and is committed to delivering value and excellence to its clients.
Frequently Asked Questions
How will the UAE's Golden Visa changes affect Dubai's real estate market?
The changes in the UAE's Golden Visa policy, which de-link mandatory investment in real estate from long-term residency, are expected to cool speculative buying in mid-market and entry-level property segments in Dubai, leading to a more balanced market.
Which Indian cities are likely to benefit from the redirected capital?
India’s Tier 1 and 2 cities, including major urban centers like Mumbai, Delhi, Bangalore, and emerging markets like Pune, Hyderabad, and Chennai, are expected to attract a substantial portion of the redirected capital.
What government policies in India are boosting the real estate sector?
The Indian government’s initiatives such as the Real Estate (Regulation and Development) Act (RERA) and the Pradhan Mantri Awas Yojana (PMAY) are enhancing the attractiveness of the real estate market by bringing transparency, accountability, and affordability.
What are the potential risks of the shift in investment patterns?
While the influx of capital is positive, it’s important to manage it carefully to avoid creating new bubbles in the Indian market. Ensuring that the capital is directed towards sustainable and long-term projects will help maintain the health and stability of the market.
What is the role of Colliers India in the real estate sector?
Colliers India is a leading real estate services and investment management firm, providing a wide range of services including residential and commercial property management, investment advisory, and transaction services. The company operates across major cities in India and is committed to delivering value and excellence to its clients.
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