Real estate investing in the UAE offers a globally competitive market with strong rental yields, a tax-friendly environment, and a liquid resale market. Meanwhile, Bangalore’s real estate scene is driven by its booming tech industry, yet faces challenges like low rental yields and slow appreciation. A recent Reddit post has sparked a heated debate, drawing stark comparisons between the two markets.
A Reddit user broke it down with a bold claim: “Bursting the bubble. Here’s a brutal, no-nonsense comparison of UAE vs Bangalore real estate in terms of investment returns, rental yields, and overall value.”
In a point-by-point explanation of key points, the user pointed out:
The Numbers Game
The post emphasized rental yields as Bangalore’s biggest weakness. "While the UAE offers 6-8% net rental yields, Bangalore struggles at 2-3% gross (before taxes and maintenance).
Example: A ₹3 crore flat in Bangalore rents for ₹60,000/month (₹7.2 lakh/year) → 2.4% gross yield. - A ₹3 crore flat in UAE rents for ₹1.5-2 lakh/month (₹18-24 lakh/year) → 6-8% net yield, almost three times better than Bangalore." it added.
The user also criticised property appreciation in Bangalore as "artificial". The user claimed that while apartment prices have surged, salaries haven’t kept pace, making future resale uncertain. "Meanwhile, UAE’s demand is backed by global investors and expats, ensuring sustainable appreciation," the user said.
Liquidity was another concern. The user noted that reselling a Bangalore flat is slow and complicated, often requiring under-the-table transactions, while UAE properties are easier to sell. “If you ever need cash fast, your Bangalore flat is useless,” they concluded.
The post triggered passionate reactions. Some argued that Bangalore’s high prices are justified due to demand from wealthy business owners, while salaried professionals struggle to afford real estate.
Others questioned why investors expect high rental yields from residential properties, suggesting commercial real estate might offer better returns.
One user raised concerns about Dubai’s property ownership rules, highlighting that foreigners don’t get permanent ownership or citizenship, and visa policies keep changing.
Another countered that land investments in India could yield far higher returns than apartments, making direct comparisons misleading.
A more balanced view suggested that local market knowledge is key — while Dubai might be a good investment for those familiar with it, blindly investing from India could be risky.