With property prices escalating sharply in Indian cities like Mumbai and Delhi, many Indians are looking at investing in Dubai, where property after a steep correction seems to have stabalised in prime areas.
Experts in the local market believe that enquires from Indian investors are on the same levels as 2009 and 2010 but what is different this year is that investor interest will turn into real transactions.
“Indians and non-resident Indians already are the largest buyer group across all real estate in Dubai. The enquiries have gone up and we could expect a rise in transactions. In 2009 and 2010 properties were well priced but due to limited finance available properties were still out of reach for many.
Given the current conditions where properties are well priced as well as the mortgage sector opening up it’s an opportunity that most Indians are looking to take advantage of,” Floyd Pinto, Manager, Customer Care at Better Homes told Emirates 24|7.
Real estate prices in cities like Mumbai have risen by 40-50 per cent since 2009, leading some rich Indians to go off shore. In some areas of Mumbai, like in the far north, real estate prices have passed 2008 peak values.
On the other hand, Dubai is getting a lot of attention after a correction of 30 to 50 per cent.
However, the Better Homes expert believes that the bulk buyers are end users. "It’s mostly people residing in the UAE. These are residents who consider purchasing lucrative option in comparison to paying rents. So there isn’t much interest or enquiries from overseas Indian investors as such but rather Indians residing in Dubai.”
On the kind of properties that are popular among Indians, Pinto commented: “There are enquiries typically for every property from low range to high end. However, the bulk buyers being end users there is more demand for quality properties at mid-range prices.”
Countries such as Singapore, Mauritius, Thailand and Malaysia are also attracting Indian investors. Some are buying for children who are studying abroad but according to Jaideep Singh, head of the India desk at global property consultant Knight Frank there are more who are buying second and even third properties as holiday homes.
“People are buying property abroad because these are even cheaper than in India, which makes it perfect for getting a second, or a third home,” he told media.