Middle-Class Indians Thrive in Dubai’s Real Estate Market, Struggle in India
While middle-class Indians in Dubai are building wealth through sustainable property investments, their counterparts in India are burdened by high EMIs and low rental yields.
Real EstateMiddle ClassProperty InvestmentDubaiIndiaReal EstateJun 23, 2025
Bengaluru-based CA and startup founder Abhishek Jamuar didn’t mince words on LinkedIn: “Sorry to say, but Dubai’s Indian buyers are smiling wider than India’s.” Jamuar’s post spotlights a striking divide between what property ownership looks like for Indians abroad versus those buying at home. In Dubai, he says, it’s not just the wealthy snapping up real estate. Regular working-class couples—those who’ve saved diligently over a decade or more—are buying two to three properties, renting them out at yields of 6–7%, and borrowing at just 5%. The result: sustainable, income-generating assets that double as retirement plans.
Not burdened by the EMIs, Jamuar emphasized, underlining the financial breathing room this model creates. Contrast that with India, where the same middle-class couple typically buys a single home, borrows at 10%, and earns a rental yield of just 3%. “One person’s entire income keeps going into EMIs,” he wrote. Ownership, in this case, becomes an ongoing liability rather than a future-ready asset.
To be clear, Jamuar isn’t calling Dubai’s real estate market better. In fact, he believes India’s property prices grow faster. But his core point is about the structure—how Dubai’s system offers freedom, and India’s offers stress. “The burden that comes with buying a property in India, and the freedom that comes with buying a property in Dubai,” he concluded, is the real difference. It’s not a market problem—it’s a model problem.
This disparity highlights the need for a more balanced and sustainable real estate market in India, where middle-class families can also benefit from property investments without being trapped in long-term financial obligations. The Indian real estate sector could learn from Dubai’s model, focusing on creating more accessible and profitable investment opportunities for the average buyer.
Frequently Asked Questions
What is the main difference between buying property in Dubai and India?
In Dubai, middle-class couples can buy multiple properties, rent them out at high yields, and borrow at lower interest rates. In India, the same couples often buy a single home, pay high EMIs, and earn lower rental yields.
How does the rental yield compare between Dubai and India?
In Dubai, rental yields are typically 6-7%, while in India, they are around 3%.
Why does Abhishek Jamuar believe India's property prices grow faster?
Despite the higher growth in property prices in India, the financial structure and market conditions in Dubai make it more beneficial for middle-class investors.
What is the impact of high EMIs on middle-class families in India?
High EMIs in India can burden middle-class families, often consuming a significant portion of their income and making it difficult to save or invest elsewhere.
What can the Indian real estate market learn from Dubai?
The Indian market can adopt a more balanced and sustainable model, focusing on creating more accessible and profitable investment opportunities for middle-class buyers.
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