A candid breakdown by Bengaluru-based Chartered Accountant (CA) and startup founder Abhishek Jamuar has ignited a significant debate on social media, highlighting a stark and often painful reality for middle-class Indian homebuyers: the seemingly paradoxical situation where they can build substantial retirement wealth through real estate in Dubai, yet struggle under decades of “punishing EMIs” for properties back home that offer minimal returns.
Jamuar, in a viral LinkedIn post, unequivocally stated, “Sorry to say, but Dubai’s Indian buyers are smiling wider than India’s.” While acknowledging that India’s property prices might appreciate faster in raw terms, his core argument focuses on the fundamental “structure” and “model” of real estate investment in both regions, which leads to vastly different outcomes for the average middle-class individual.
According to Jamuar’s analysis, in Dubai, it’s not just the ultra-rich who are investing. Regular, working-class Indian couples, who have diligently saved for a decade or more, are reportedly acquiring two to three properties. These properties are then rented out at impressive yields of 6-7%, with borrowing costs as low as 5%. The result, he emphasizes, is the creation of “sustainable, income-generating assets that double as retirement plans,” all “not burdened by the EMIs.” This model offers financial breathing room and a clear path to wealth accumulation.
The contrast with India, as painted by Jamuar, is stark. The typical middle-class Indian couple, he explains, often manages to buy just a single home. This purchase is frequently financed with loans at much higher interest rates, often around 10%, while the rental yield on such properties is a meager 3%. “One person’s entire income keeps going into EMIs,” he wrote, illustrating how property ownership in India frequently becomes an “ongoing liability rather than a future-ready asset.”
Jamuar’s central takeaway is not about which market has higher capital appreciation, but rather the contrasting financial freedom offered by Dubai’s real estate ecosystem versus the stress-inducing burden often associated with Indian property ownership. He concluded, “The burden that comes with buying a property in India, and the freedom that comes with buying a property in Dubai,” is the real, defining difference, pointing to a “model problem” rather than just a “market problem.”
This perspective resonates deeply with many middle-class Indians facing rising property prices, high interest rates, and low rental incomes, pushing them to re-evaluate traditional investment wisdom and explore international opportunities for building long-term financial security. The discussion sparked by Jamuar’s post underscores the urgent need for a more sustainable and equitable real estate environment in India that truly empowers its middle-class population.
Key Highlights:
- A CA’s analysis reveals that middle-class Indians are achieving greater real estate success and retirement wealth in Dubai compared to India.
- In Dubai, ordinary working couples are buying multiple properties with 6-7% rental yields and low 5% borrowing rates, creating income-generating assets without heavy EMI burdens.
- Conversely, in India, the same demographic typically buys a single home with 10% loan rates and only 3% rental yields, making property ownership a significant and prolonged financial liability.
- The core issue highlighted is the difference in real estate models, where Dubai offers financial freedom and India often imposes financial stress through its property market structure.