Actual property investing within the UAE provides a globally aggressive market with sturdy rental yields, a tax-friendly setting, and a liquid resale market. In the meantime, Bangalore’s actual property scene is pushed by its booming tech trade, but faces challenges like low rental yields and gradual appreciation. A current Reddit submit has sparked a heated debate, drawing stark comparisons between the 2 markets.
A Reddit person broke it down with a daring declare: “Bursting the bubble. Right here’s a brutal, no-nonsense comparability of UAE vs Bangalore actual property when it comes to funding returns, rental yields, and total worth.”
In a point-by-point clarification of key factors, the person identified:
- UAE outperforms Bangalore in each metric besides upfront affordability.
- Bangalore actual property is a liquidity lure — gradual appreciation, low rental yields, and excessive upkeep prices.
- UAE actual property is an actual funding, whereas Bangalore flats are simply speculative cash parking.”
The Numbers Sport
The submit emphasised rental yields as Bangalore’s largest weak spot. “Whereas the UAE provides 6-8% web rental yields, Bangalore struggles at 2-3% gross (earlier than taxes and upkeep).
Instance:
A ₹3 crore flat in Bangalore rents for ₹60,000/month (₹7.2 lakh/12 months) → 2.4% gross yield.
– A ₹3 crore flat in UAE rents for ₹1.5-2 lakh/month (₹18-24 lakh/12 months) → 6-8% web yield, nearly 3 times higher than Bangalore.” it added.
The person additionally criticised property appreciation in Bangalore as “synthetic”. The person claimed that whereas residence costs have surged, salaries haven’t saved tempo, making future resale unsure. “In the meantime, UAE’s demand is backed by international buyers and expats, making certain sustainable appreciation,” the person stated.
Liquidity was one other concern. The person famous that reselling a Bangalore flat is gradual and complex, usually requiring under-the-table transactions, whereas UAE properties are simpler to promote. “When you ever want money quick, your Bangalore flat is ineffective,” they concluded.
The submit triggered passionate reactions. Some argued that Bangalore’s excessive costs are justified on account of demand from rich enterprise homeowners, whereas salaried professionals wrestle to afford actual property.
Others questioned why buyers count on excessive rental yields from residential properties, suggesting industrial actual property would possibly supply higher returns.
One person raised considerations about Dubai’s property possession guidelines, highlighting that foreigners don’t get everlasting possession or citizenship, and visa insurance policies hold altering.
One other countered that land investments in India might yield far increased returns than residences, making direct comparisons deceptive.
A extra balanced view steered that native market data is essential — whereas Dubai is likely to be a very good funding for these conversant in it, blindly investing from India might be dangerous.
