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Nachiket Kelkar
Nachiket Kelkar

REAL ESTATE INVESTMENTS

Indians invest about Rs 37000 crore in Dubai realty market

Major cities at risk Dubai's booming realty sector | AP

The real estate market in India may have hit speed bumps in recent times, but the appetite to invest in Dubai's realty market remains strong and Indians continue to be the largest investors there. Residential real estate prices, which are competitive compared with prices in cities like Mumbai, high rental yields and tax free income is a big draw for Indians investing in Dubai.

According to data from the Dubai Land Development, Indians invested about Rs 3,400 crore in 2011. That figure jumped to Rs 37,060 crore in 2015.

"Indians have been investing about 20 billion Dirham in Dubai's real estate market each year in the last few years. The accumulated number till 2017 is 126 billion Dirham," said Majid Saqr Al-Marri, senior director, real estate investment management, Dubai Land Development.

Sandeep Jaiswal, deputy CEO of sales and marketing at Dubai-based Azizi Developers said that 14-18 per cent of investers in the market were now Indians.

"People who are buying property in Dubai are getting a rental yield of 7-8 per cent easily. As the vicinity improves with respect to schools, supermarkets, the metro... the yields will only increase further," Jaiswal told THE WEEK.

Other developers too have a similar experience to share. Sanjay Manchanda, the CEO of Nakheel PJSC said Indians accounted for one in 10 of its investors; they have purchased 4,500 units from Nakheel, spending over Rs 16,621 crore.

Why are Indians investing so much in Dubai's property market?

"Dubai's excellent transport and social infrastructure, strong demand for rental properties, regulations that allow foreigners to buy freely and strict regulations that ensure that disputes are settled quickly and fairly make it a magnet for real estate investors," said Manchanda.

According to developers, an investor with $1 million can buy 145 square meters of property in Dubai, versus just 96 square meters in Mumbai. Further more, neither is there any tax on rental income in Dubai, nor is there any capital gains tax, which make the returns on investment much higher than similar other markets. With more than 1,700 flights a month, Dubai is also easily accessible from India, and there are also no restrictions on the number of properties a foreign national can own there.

In Dubai one can buy anything from studios to town houses,to bungalows and even land and prices can range from Rs 1 crore to more than Rs 5 crore.

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Topics : #Real estate | #Dubai

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