Crashing Dubai realty market may benefit Hyd, Vizag in getting big buyers

Visakhapatnam: With real estate prices crashing in the Middle East's main economic hub Dubai,, many think it will trigger a new demand for high-end ventures as well as residential plots for investment by NRIs and affluent people as a better option for investment in the two Telugu-speaking States.

Indian real estate is seeing renewed interest from domestic investors as Dubai’s property market faces a steep slowdown, highlighting the gap between India’s stability and the Gulf city’s volatility. Once a magnet for celebrities and high-net-worth buyers, Dubai is losing appeal amid rising geopolitical tensions.

"Before the West Asia conflict and the indiscriminate attack by Iran on financial institutions and oil infrastructure in Dubai and other parts of the Gulf, is driving many to evince interest to explore investments in Andhra Pradesh and Telangana as a safe bet. The reputation that investment in Dubai is totally risk-free is proving to be myth after the current turmoil and shutdown of several airports," CREDAI AP president Bayana Srinivasa Rao, told Bizz Buzz on Thursday.

While Hyderabad in Telangana is home for several high-end ventures, of late DLF has been extended a red carpet welcome for exploring investments in Visakhapatnam and Amaravati by AP Chief Minister N. Chandrababu Naidu.

Due to the decision to attract more data centers and premier IT companies to Visakhapatnam, a goodwill has been generated for investment in realty ventures in Visakhapatnam after the coalition formed the government in June, 2024.

As part of Vizag Bay City project and Visakhapatnam Economic Region (VER) mooted in nine North Andhra districts as a $125 billion to $135 billion hub by 2032, the prices have started appreciating. Ahead of schedule completion of Bhogapuram International Airport by June, 2026 is another reason for spurt in demand.

Many started investing in Dubai from the two Telugu States following an offer for a 10-year Golden Visa to foreign investors who wished to invest AED 2 million equivalent to $5.45 lakh. High rental yields, residency on a fast-track without local reference and tax sops had made Dubai a safe haven for investors from various countries till the war broke out.

CREDAI Visakhapatnam chapter president E. Ashok Kumar is of strong opinion that as Dubai faces sharp losses, regions like Andhra Pradesh and Visakhapatnam will attract renewed domestic interest from upper middle class and high networth investors (HNIs).

He pointed out that over the past few years, Dubai outpaced traditional markets such as the UK, US, and Australia, buoyed by investor-friendly policies, strong governance, and high social media visibility. But escalating West Asia tensions, including Iran–US disputes and attacks on American bases, have triggered concern. Reports show Dubai’s real estate index fell nearly 33% last month, with daily declines of 3–4%. Ashok Kumar said the shift underscores India’s resilience. “India consistently demonstrates strong fundamentals and stability in real estate. With geopolitical instability abroad, domestic markets have become increasingly attractive,” he said.

Highlighting AP and Visakhapatnam as examples, he pointed out that “transparent governance, regulatory stability, and steady economic growth make these regions ideal for investors seeking reliable, long-term returns” and emphasized the need for policy support to retain domestic capital, stating, “In this situation, if the Central Government gives incentives in Income Tax and GST to big buyers, the funding will remain in India instead of going outside.”

Indian real estate is seeing renewed interest from domestic investors as Dubai’s property market faces a steep slowdown, highlighting the gap between India’s stability and the Gulf city’s volatility. Once a magnet for celebrities and high-net-worth buyers, Dubai is losing appeal amid rising geopolitical tensions