Dubai has become a popular second home choice among well-heeled Indian buyers looking for a second home. Following its real estate crash, house prices in the emirate have fallen, and are now about 50% less than those in fast-rising Mumbai. Because of the high prices in their own cities, many wealthy investors from India are taking advantage of bargains abroad.

Mumbai property prices have risen by at least 40% since 2009, leading many local buyers to look abroad. In some parts of the city, home values have even passed the peak prices set in 2008.

Experts believe that the Mumbai property market will face a slight correction later this year despite the housing shortage in the city, and that prices will start to moderate after they appreciated in the first quarter of 2011.