From EMIs to Equity: Why Dubai’s Deals Are Making India Look Expensive

Image Source: Business Today

A viral LinkedIn posting by Bengaluru startup founder and CA Abhishek Jamuar has set off a nation-wide discussion regarding the middle class realty situation in India. His comparison of Dubai and India's property ownership has struck a chord with thousands of people, evoking a harsh contrast in financial results.

Key Insight: The Real Estate Divide

Indian middle-class couples are buying two to three properties in Dubai following years of saving.
These are rented out at yields of 6–7%, loans at interest rates as low as 5%
The outcome: earning assets that are retirement plans too, without the weight of suffocating EMIs

Compare with Indian Reality

The same people would typically buy one home, typically with 10% interest on the loan.
Rental yields are approximately 3%, and therefore the investment is economically inefficient
The entire individual's salary often gets utilized for EMIs, and hence ownership is a liability rather than an asset

Structural vs Market Problem

Jamuar explains that he is not suggesting Dubai's market is better—India's rates of property can rise more quickly
The issue lies with the design: Dubai offers fiscal relief, while India's design creates long-term strain
The bottom line: it's not where you are, but whether or not the system supports or hinders middle-class wealth-building

Broader Consequences

The blog has initiated fresh debates on housing affordability, retirement planning, and personal money management
It also asks whether India's real estate framework is really helping its most significant economic sector

Sources: MSN News, Business Today, LinkedIn (Abhishek Jamuar)