How the numbers are modelled
Section A
Capital deployment: both markets
Capital deployed, both markets
₹3,00,00,000
Market 01 — Dubai / Abu Dhabi · Market 02 — Bengaluru / India
Section B
Year 1: rental income and tax
Market 01
Dubai / Abu Dhabi
- Gross rental yield
- 7–10%
- Annual rental income
- ₹21,00,000
- Monthly rental income
- ₹1,75,000 per month
- Tax on rental income
- 0%
- Net annual profit
- ₹21,00,000
Market 02
Bengaluru / India
- Gross rental yield
- 3–4%
- Annual rental income
- ₹9,00,000
- Monthly rental income
- ₹75,000 per month
- Tax on rental income
- −22.22%
- Net annual profit
- ₹7,00,000
₹12,00,000
Difference in modelled net rental profit, yearly — in Dubai's favour
Section C
Five-year rental growth projection
Source-material modelling language: Dubai rents have historically climbed 10%–20% a year; Bengaluru rents 5%–15%. Historical ranges are context for the model below, not a promise of future rent growth.
Market 01
Dubai / Abu Dhabi
- Yearly rental increase
- 10–15%
- Modelled at
- 12.03%
- Tax
- 0%
- Modelled rent / year after 5 years
- ₹37.06L
Market 02
Bengaluru / India
- Yearly rental increase
- 7–12%
- Modelled at
- 10%
- Tax
- 22.22%
- Modelled rent / year after 5 years
- ₹11.2L after tax
Section D
Cumulative rental income: five years
Modelled annual rent, year 1 → year 5
Dubai / Abu Dhabi₹21,00,000 → ₹37.06L
Bengaluru / India₹7,00,000 → ₹11.2L after tax
Section E
Currency movement & property appreciation
The event material models what happens if AED/INR increases by 4% annually over five years. Because the UAE Dirham is pegged to the US Dollar, AED/INR movement is closely connected to the relationship between the Rupee and the US Dollar.
Illustrative currency scenario — not a forecast
Market 01
Dubai / Abu Dhabi
- AED–INR appreciation modelled
- 4% p.a.
- AED–INR, Aug 2026
- 26.1
- Illustrative AED–INR, Aug 2031
- 31.63
- Modelled rent / year after 5 years, incl. currency effect
- ₹45.09L
Market 02
Bengaluru / India
- AED–INR appreciation
- 0%
- AED–INR
- —
- Illustrative AED–INR, Aug 2031
- —
- Modelled rent / year after 5 years
- ₹11.2L
4x
Modelled net return
Four times the modelled return once the currency scenario is included — based on the assumptions used in the investor note. Currency scenarios are illustrative and are not forecasts.
Section F
Why Dubai wins: three structural factors
01Rental yield
A 7–10% gross yield assumption versus 3–4% in Bengaluru — the single largest driver of the modelled gap.
02Tax structure
0% modelled tax on UAE rental income versus ~22.22% assumed on the India side of the comparison.
03Currency
An illustrative 4% annual AED/INR move (26.1 → 31.63) adds a second variable to INR-measured outcomes.
Property rental performance+AED / INR movement=INR-denominated outcome
For an Indian investor, an overseas property has two important variables: how the property performs in AED, and what each AED is worth in INR when the money is eventually measured back in Rupees. Neither variable is guaranteed to move in one direction.
Footnotes
How this comparison is modelled
- Identical starting capital deployed in both markets.
- Dubai / Abu Dhabi gross rental yield assumption: 7–10%.
- Bengaluru / India gross rental yield assumption: 3–4%.
- Dubai modelled rental-growth assumption: 12.03% per year (source range 10–15%).
- Bengaluru modelled rental-growth assumption: 10% per year (source range 7–12%).
- India-side tax assumption used in the original material: ~22.22% on rental income.
- UAE rental-income tax assumption used in the material: 0%.
- Currency scenario: AED/INR modelled to increase 4% per year from 26.1 (August 2026).
- Modelling period: five years.
- All figures are illustrative and rounded as printed in the original investor note.
Modelled illustration only. Assumes fully let property, no financing costs and current market rents. Service charges, agency fees, taxes in the investor's home jurisdiction and vacancy periods will change the outcome.
- Modelled illustration only. Not a forecast, offer or guarantee of returns.
- Assumes a fully let property, no financing costs and current market rents at the time of publication.
- Vacancy, agency fees, service charges, remittance costs and tax in the investor's home jurisdiction will change the outcome.
- Indian residents must remit funds under the RBI Liberalised Remittance Scheme and should confirm the position with their own tax adviser.
Illustrative comparison based on the assumptions shown above and the original Property Expo 2026 investor note. Actual rental yields, property values, taxes, currency movements and investment outcomes can differ significantly. This is not financial, tax or investment advice. Indian tax treatment depends on individual circumstances and should be verified with a qualified adviser. Currency scenarios are illustrative and are not forecasts.