By Saifur Rahman
DUBAI: Indians bought property worth Rs42,000 crore in Dubai from January 2016 to June 2017, making them yet again the top foreign property investors in the emirate, statistics released by the Dubai Land Department revealed.
“For years, Indians have consistently been the most prolific non-GCC buyers of Dubai real estate. From January 2016 to June 2017, they bought property worth more than Rs42,000 crores in the emirate,” said a statement from Dubai Property Show.
In recent years, the trend of Indians investing in Dubai has surged due to the exponentially increasing property prices in India. According to a report, there has been a 12 per cent growth in the number of Indian travellers to Dubai despite demonetisation and cash pressures. Given the recent developments, the repercussions have lowered sales in the Indian real estate sector. Indian investors who wish to invest in second homes or deploy their remonetised cash have limited options to achieve higher returns in India, it is pointed out.
In Dubai, Indian investors can avail of tax-free returns of eight to 10 per cent and sound capital appreciation as the dirham is pegged to the US dollar and unaffected by currency fluctuations. Additionally, under the Reserve Bank of India’s ‘liberated remittance scheme’, an Indian investor can transfer $250,000 legally per year. A couple can send $500,000 every year. This amount can fetch a fantastic property in Dubai. The ease of registering a property in Dubai in comparison to India is also considered as an incentive.
Property prices in Dubai are very economical as compared to India. A property in a prime location in the city of Mumbai costs anything between Rs40,000 to Rs55,000 per sqft, a property in Delhi will range up to Rs36,000 per sqft and in Bengaluru, it ranges between Rs19,000 and Rs27,000 per sqft. Dubai offers property investments in the centre of town at a starting price of Rs25,000 per sqft.
Besides, all apartments here are sold in terms of carpet area while in India, it is sold as built-up. In addition, car park is given for free here. In India, it is charged separately. In Dubai, most apartments come with fittings and fixtures whereas in India, properties usually come shell and core. So, when you add all this up, you get a fantastic deal in Dubai and much higher value for money. As of today, you can buy only a 99sqm land plot in Mumbai for $1 million versus a 162sqm land parcel in Dubai for the same amount.
Dubai has been a hotspot not only for businesses but also for sectors such as tourism, real estate, etc., for the past few years. The city is considered a viable international hub because of its steady economic growth, good infrastructure, city planning and ease of access to the rest of the world. Its inclusive culture and tolerance for multiple nationalities is welcoming.
A recent Knight Frank report says, from 2012-17, Indian residential property buyers have seen an overall return of 49.3 per cent, the highest in the world. Dubai is among the most affordable property destinations, and the strengthening of the rupee further nudged investors in this direction. In the last three years, Indian nationals have invested a total of $12.97 billion.
UAE nationals were the largest investor group in Dubai’s real estate sector with $6.89 billion in 2017. Dubai’s real estate market has attracted investors from around the world, including Gulf nationals, Arabs and foreigners, with a total of 39,480 investors making nearly 53,000 transactions worth about $30 billion, Dubai Land Department said in a just released report.
In a report issued by Dubai Land Department in August last year, the department said, “217 nationalities have invested in Dubai’s real estate market. This demonstrates the confidence that the world has in our real estate environment, which is characterised by a strong regulatory system that provides safety and security for all parties.”
In addition to investment in residential and commercial units, Indians, Pakistanis, Iranians and Arabs are also some of the largest private sector developers, who are developing not only towers, but mixed-use, master-planned communities also.
Among the foreign-owned private property developers, Sobha, Danube Properties, Azizi Developments, Diamond Developers, Shaikhani Group, among others are making headlines on new real estate projects.
The UAE investors continue to lead the list of nationalities investing in the Dubai real estate market. The second place was for Indian investors and the Saudis came in third place, followed by British and Pakistanis. Other active investors include Chinese, Jordanians, Egyptians and Canadians.
The contribution of women to real estate investment is growing, with their trust in the Dubai real estate market reflected by 11,773 women entering the market and making a total of 14,316 transactions worth over $7 billion. (IPA Service)
The post Indians Stay Top Buyers Of Dubai Properties appeared first on Newspack by India Press Agency.
