As biggest investors for the first half of the year and in the Burj Khalifa already, it seem that Indian investment in Dubai is set to further increase.
In summary:
- Indian investors consider Dubai as safe amid bubble burst fears in India
- In H1 Indian investors spent DH 3.75 billion on Dubai real estate
- Capital growth and rental returns have improved in Dubai
It was recently revealed that Indian’s invested the most money in Dubai property for the first half of the year, purchasing real estate assets worth DH3.75 billion, a total of 2153 units.
This figure could expand even more as reports suggest that many Indian people are fearing a property bubble burst back home and are looking at Dubai for safety.
In the past, purchasing property in Dubai was seen as a luxury, but it is not being considered a clever investment for those wanting to avoid the potential bubble burst back home.
This notion was further relayed by Mohanad Alwadiya, Managing Director of Harbor Real Estate who commented: “Any real estate industry is somewhat cyclical and the Indian and Dubai industries are currently at different stages in their respective cycles.
“While the property market in Dubai has been contracting since the property bubble burst in late 2008, with values declining by up to 60 per cent in some areas, India, conversely, has experienced an ever growing property bubble, accompanied by rampant inflation and high interest rates.”
This has created the concept that the property bubble in Indian is set to burst, whilst the market in Dubai is continually showing signs of recovery from the financial crisis with capital growth returning and rental returns increasing in prime areas such as Dubai Marina and Downtown Dubai.
Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India added: “The US and the UK are traditionally closest to the hearts of most Indians hoping to buy property abroad.
“However, when these are out of reach, Dubai is definitely among the most preferred among realistic property investment destinations for Indians.
“The existing interest is equally distributed among investors responding to the rationalised property rates in Dubai and hoping to cash in on an improved market later, and business people who actually have operations there.”
Dubai is also a favoured location for Pakistani and British investors who are looking for a safer place to invest where political unrest and an unstable economy are unlikely.
Source: www.selectproperty.com
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