Real estate investment in UAE offers a globally competing market for a strong rental for rent, a tax -friendly environment and a liquid sales market. Meanwhile, Bangalore's real estate scene is powered by its prosperous technology industry, yet faces challenges such as low revenues for rent and slow recognition. The recent Reddit post has triggered a heated debate and caused a sharp comparison between the two markets.
Reddit has broken it with a bold claim: “Bubble rupture. Here is a brutal, nonsensical comparison of UAE vs. Bangalore Real Estate in terms of investment return, rental income and overall value. ”
When explaining the key points at the point after point the user pointed to:
- SAE overcomes Bangalore in each metric with the exception of pre -availability.
- Bangalore Real Estate is a liquidity trap – slow valuation, low revenues for renting and high maintenance costs.
- Real estate Arab areas is a real investment, while Bangalore flats are just speculative money parking. ”
Numbers
The contribution emphasized the rental revenues as the greatest weakness of Bangalore. “While SAE offers revenues of 6-8% net rental, Bangalore fights 2-3% of gross (before taxes and maintenance).
Example:
Resident Crr Crore 3 in Bangalore rent for 60,000 GBP/month (£ 7.2 lakh/year) → 2.4% gross yield.
-3 Crore in the UAE rent for 1.5-2 is lakh/month (18-24 lakh/year) → 6-8% net yield, almost three times better than Bangalore. “He added.
The user also criticized the valuation of assets in Bangalore as “artificial”. The user claimed that while the prices of apartments increased, the salaries did not keep the pace, so the future further sale uncertain. “Meanwhile, the SAE demand is supported by global investors and expats and ensures sustainable recognition,” the user said.
Liquidity was another problem. The user noted that the sale of Bangalore apartment is slow and complicated, often requires transactions under the table, while SAE properties are easier to sell. “If you ever need cash quickly, your Bangalore is unnecessary,” they concluded.
Post triggered passionate reactions. Some argued that Bangalore high prices were justified for demand from the rich owners of businesses, while paying experts are trying to allow real estate.
Others asked why investors expect high rental revenues from residential real estate, suggesting that commercial real estate can offer better returns.
One user raised concerns about the rules of ownership of real estate in Dubai and stressed that foreigners do not receive permanent ownership or citizenship and visa policies are constantly changing.
Others against investing in land in India can bring much higher yields than apartments, which would be a direct comparison misleading.
A more balanced view suggests that the knowledge of the local market is crucial – while Dubai could be a good investment for those who are familiar with him, blind investment from India could be risky.
