Indians have by far remained the most prolific foreign investors in Dubai realty, outshining capital inputs from British, Russians and all others. As per the data from Government of Dubai’s Land Department, Indians have once again topped the charts as the number one investor in Dubai realty with a whopping investment of Rs 13,600 crore ($2 billion) into the sector in the first half of 2016 alone.
“Dubai’s real estate market is becoming an attractive proposition to a multitude of international investors. However, no other nation invested more money into Dubai than India, with little over half-a billion dollars i.e Rs 3,400 crore worth of investments in 2011; the investments from Indians have gone up ten-times in the last four years. Last year itself, they poured in Rs 37,060 crore ($5.45 billion) which was again an increase of 10% from the previous year.
Dubai is increasingly becoming a hot favorite destination with Indians and their liking for Dubai can be attributed to a number of reasons which include its high capital gains, great return on investment, tax-free environment, proximity to India, transparent deals amongst many others”, said Asanga Silva, Deputy General Manager, Sumansa Exhibitions, the company bringing in Dubai Property Show to Mumbai from December 9-11 at Bandra Kurla Complex (BKC- MMRDA Grounds).
Overall, Indians have pumped in a total of Rs 1,24,440 crore ($18.3 billion) into Dubai realty since 2011.
“Indians are looking at profitable dividends in the form of rents, resale value and tax benefits. Investors here enjoy no lock-in period with no capital gains tax and no property tax, buyers can also secure assets ahead of the Expo 2020 boom”, added Asanga.
Investment in Dubai is but a rational choice. Apartment rental returns in the city offer yields in the range of 7-12%. When compared to yields in London (3.5%), Hong Kong (2.82%) and Singapore (2.83%), Dubai becomes all the more attractive for investment.
Masood Al Awar, Chief Commercial Officer, Dubai Properties, a leading real estate developer of Dubai said, “Dubai is the top performing investment location for real estate and, over the years, Indian investors have continued to view the Emirate as an appealing platform to fulfill their investment needs.
Our participation in this year’s Dubai Property Show India highlights our role in leading the development drive across Dubai with a broad choice for end-users and investors in residential and commercial real estate, across the full spectrum of the market – from luxury high-end products to more affordable offerings.”
According to reliable sources, apartments remained an all-time favorite with Indians with over 60% looking to buy one while the preferred localities included popular places such as Dubai Marina, Jumeirah Beach Residences (JBR), Downtown Dubai, Jumeirah Lake Towers (JLT), Business Bay, Jumeira Village Circle (JVC), Sports City and International City. The iconic Palm – Jumeirah remains a favourite for luxury apartments.
According to data from the Dubai Land Department (DLD), released by its Real Estate Research and Studies Department, total investment transactions for the first half of the year 2016 reached Rs 10,2,000 crore ($15 billion) from 26,000 investors made up of 149 different nationalities. In terms of expat investors, after Indians, British citizens were the second biggest group of purchasers of property, splashing out Rs 7,344 crore ($1.08 billion) through 2,010 transactions.
The unprecedented growth of Dubai's real estate market has attracted investors coming from all over the world. -ANI